The European Union (EU) has announced that Platform X, owned by Elon Musk, does not fall under the classification of a “gatekeeper” subject to stricter rules. The EU Commission revealed that X was not considered a “core” platform under the Digital Markets Act (DMA). Despite meeting the necessary numerical thresholds for core platform status, a market investigation conducted by the EU since May found that X could not be defined as a significant “gateway” between businesses and consumers.
Under the EU law prompting changes in digital platforms’ activities, large platforms and companies operating in Europe have been labeled as “gatekeepers” and are now subject to strict obligations. Platforms classified as such are required to comply with new rules promoting competition, offering more options to consumers, ensuring the interoperability of services, and preventing their services from being favored over similar services offered by rival companies. Companies in the “gatekeeper” position may face fines of up to 10% of their global turnover if they violate the rules.