Musk's X may not be subject to EU's tech regulations
Elon Musk's social media platform, X, is expected to avoid the European Union's (EU) stringent tech regulations. These rules are designed to curb the influence of major tech companies. An insider revealed to Reuters that X does not fulfill the 'gatekeeper' requirements outlined in these rules. The European Commission initiated an investigation into X in May, after it challenged initial suggestions of compliance with the Digital Markets Act (DMA).
X challenges its classification under DMA
X has contested its classification under the DMA, arguing that it does not serve as a significant intermediary between businesses and consumers. The DMA categorizes companies with over 45 million monthly active users and a market capitalization exceeding €75 billion ($83 billion) as gatekeepers. These firms are required to ensure compatibility of their messaging apps with competitors' platforms, and allow users freedom in choosing pre-installed apps on their devices.
DMA restrictions on gatekeeper companies
The DMA also prohibits these 'gatekeeper' companies from favoring their own services over those of competitors or preventing users from uninstalling pre-installed software or apps. The European Commission, which had previously stated it would conclude its investigation within five months, has not commented on this matter.
X faces scrutiny under EU's Digital Services Act
X is also facing scrutiny under the EU's newly implemented Digital Services Act (DSA). This legislation mandates large online platforms to take more action against illegal as well as harmful online content, or face penalties of up to 6% of their global annual revenue. X is currently the subject of several ongoing DSA investigations.
