Today, reports from Reuters have revealed that X has avoided being designated as a “gatekeeper” platform by the European Commission. This exemption means that X will be excluded from the stringent operational requirements mandated by the EU for major tech players, as outlined in the Digital Markets Act (DMA).
EU Digital Markets Act Requirements
Platforms labeled as gatekeepers under the DMA must comply with specific rules, such as facilitating interoperability with third-party systems and providing access to user-generated data for business users. Additionally, they are required to offer ad performance data for independent verification, all aimed at fostering fair competition in the digital market.
EU Ruling on X
Despite initial expectations, the European Commission found that X did not meet the necessary criteria to be classified as a gatekeeper platform. This decision indicates that EU officials do not perceive X as a dominant market force warranting additional regulatory measures.
Assessment Criteria
To qualify as a gatekeeper, a company must demonstrate a significant impact on the market, act as a key gateway for business users, and possess a strong and enduring market position. According to EU assessments, X falls short of meeting these criteria, suggesting a diminished influence in the European market.
X Market Position in Europe
With 105 million monthly active users in Europe, X has experienced a decline of approximately 12 million users since August 2023. This downward trend, coupled with challenges in its ad business, indicates a waning relevance and impact. In comparison, Meta boasts 250 million monthly actives in the EU, followed by TikTok with 142 million MAU, highlighting X’s relatively lesser market presence.
Elon Musk’s Perspective
Elon Musk and his supporters have viewed the EU’s decision as a triumph for innovation and free speech, portraying it as a stance against bureaucratic hindrances that could impede the app’s development. Musk’s resistance to EU regulations seems to align with a desire to maintain X’s autonomy and avoid stifling its growth potential.
Implications and Reflections
However, the juxtaposition of strategic decisions and political motivations raises questions regarding the prioritization of principles over practical considerations. While Musk positions the EU ruling as a victory, the underlying acknowledgment of X’s limited impact in the European market challenges the narrative of triumph and underscores the app’s need to regain momentum and relevance.