X, ByteDance Should Meet EU Rules as 'Gatekeepers,' European Commission Says

Social media platform X and TikTok's parent company, Bytedance, must comply with the European Union's tech rules once the Digital Markets Act (DMA) finalizes its decision.

Last year, the Commission labeled ByteDance as a gatekeeper, but TikTok challenged the designation.

European Commission Must Decide for ByteDance, X

Under the gatekeeper criteria of the DMA, platforms that currently have more than 45 million monthly active users and $81 billion in market capitalization should implement changes.

The Commission has 45 working days to finalize its decision on whether ByteDance and X will be included in the gatekeepers list. All tagged companies must be prepared to comply with the DMA by March 7 to avoid any penalty.

"The Commission will also assess any argument put forward by the submitting companies to rebut the presumption that they should be designated as gatekeepers," the European Commission wrote.

DMA Nears Effectivity

With only a few days left before the start of DMA, several companies have proposed alternative experiences for EU users. For instance, Spotify announced earlier this year that in-app purchases will be opened once the DMA starts.

"Soon we expect that if you want to buy a Premium subscription or an audiobook, or are looking to seamlessly upgrade from Individual to a Duo or Family plan to save money, you will be able to do so with just a couple of easy clicks," the company wrote.

Despite Apple's attempt to go around the DMA, the company still faces scrutiny from its competitors. Other tech giants like Microsoft and Meta have expressed concerns about Apple's proposal.

As of press time, the Commission has identified Alphabet, Amazon, Apple, Meta and Microsoft, which hold 22 core platform services, as gatekeepers.

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