The European Commission, on Tuesday, February 13, has concluded its market investigations into the services provided by Microsoft and Apple.
After careful evaluation, the EC announced that Apple’s iMessage service and Microsoft’s Bing and Edge search engines would not be considered “gatekeepers” under the European Union’s strict digital competition laws.
However, the European Commission has classified Apple’s App Store, iOS operating system, and Safari browser as well as Microsoft’s LinkedIn and Windows operating system as gatekeepers.
Understanding the investigation
The announcement pertains to the Digital Markets Act (DMA) of the European Union, which will come into effect in three weeks.
The DMA requires tech giants such as Microsoft, Apple, Google (Alphabet), Amazon, Meta Platforms, and ByteDance to allow third-party apps or app stores on their platforms and make it easier for users to switch to competitors.
The market investigations were initiated on September 5, 2023, following the notification by Apple and Microsoft of the core platform services that met the quantitative thresholds.
The services under scrutiny included Apple’s messaging service, iMessage, and Microsoft’s online search engine, Bing, web browser Edge, and online advertising service Microsoft Advertising.
Both companies also submitted “rebuttal” arguments, contesting the designation of these services as gateways despite meeting the quantitative thresholds.
These arguments highlighted the companies’ perspectives on why their services should not be considered gatekeepers.
The Commission considered the importance of these arguments and conducted an in-depth analysis before reaching its decision.
As a result, the commission thoroughly assessed all arguments presented by Apple and Microsoft. Additionally, EC sought input from relevant stakeholders and considered the recommendations provided by the Digital Markets Advisory Committee.
Consequently, the Commission found that iMessage, Bing, Edge, and Microsoft Advertising do not qualify as gatekeeper services.
However, the Commission says it will continue to monitor the developments in the market concerning these services should any substantial changes arise.
The decisions do not affect the designation of Apple and Microsoft as gatekeepers on September 5, 2023.
What is the Digital Markets Act?
The DMA is a legislative framework introduced by the European Union to regulate digital markets and address the challenges posed by dominant online platforms.
It aims to ensure fair competition, protect consumer rights, and foster innovation in the digital space.
Under the DMA, the Commission has the authority to investigate and designate certain companies as gatekeepers, subject to specific criteria.