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Home»Business»Microsoft, Google will not challenge EU gatekeeper status
Business

Microsoft, Google will not challenge EU gatekeeper status

November 15, 2023No Comments3 Mins Read
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[1/2]A sign is pictured outside a Google office near the company’s headquarters in Mountain View, California, U.S., May 8, 2019. REUTERS/Paresh Dave/File Photo Acquire Licensing Rights

BRUSSELS/STOCKHOLM, Nov 14 (Reuters) – Microsoft and Google will not challenge an EU law requiring them to make it easier for users to move between competing services such as social media platforms and internet browsers.

As part of its latest crackdown on Big Tech, the European Union in September picked 22 “gatekeeper” services, run by six of the world’s biggest tech companies, to face new rules .

The Digital Markets Act (DMA) requires these gatekeepers to inter-operate their messaging apps with competitors and allow users to decide which apps they pre-install on their devices.

The DMA will apply to services from Alphabet (GOOGL.O), Amazon (AMZN.O), Apple (AAPL.O), Meta (META.O), Microsoft (MSFT.O) and TikTok owner ByteDance.

Those disagreeing with the label and its requirements have until Nov. 16 to take their complaint to the Luxembourg-based General Court, which deals with cases ranging from competition law to trade and the environment.

A Google spokesperson said it will not appeal the decision.

Alphabet’s Google has the highest number of services, including its Android operating system, maps and search, which will face tougher rules under the DMA.

Google has adopted a strategy in recent years of working rather than fighting EU regulators, and it would be hard for the company to win as it is the dominant player, according to sources familiar with the matter.

Companies such as Zalando (ZALG.DE) and Amazon have challenged the Digital Services Act (DSA), seen as a companion legislation to the DMA, which imposes greater responsibilities on tech firms for the content shared on their sites.

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Amazon, which had previously said it will continue to work constructively with the European Commission, declined comment.

“We accept our designation as a gatekeeper under the Digital Markets Act and will continue to work with the European Commission to meet the obligations imposed on Windows and LinkedIn under the DMA,” a Microsoft spokesperson said.

Industry sources told Reuters that other companies such as TikTok and Meta could likely file challenges. Meta’s Facebook, Instagram, Marketplace, and WhatsApp qualified as gatekeepers.

Meta and TikTok declined to comment.

TikTok earlier said that it fundamentally disagreed with the gatekeeper designation.

Apple, which Bloomberg News reported on Friday is also likely to challenge its designation, did not respond to requests for comment.

Reporting by Foo Yun Chee in Brussels and Supantha Mukherjee in Stockholm; Editing by Sharon Singleton and Alexander Smith

: .

Acquire Licensing Rights, opens new tab

An agenda-setting and market-moving journalist, Foo Yun Chee is a 20-year veteran at Reuters. Her stories on high profile mergers have pushed up the European telecoms index, lifted companies’ shares and helped investors decide on their move. Her knowledge and experience of European antitrust laws and developments helped her broke stories on Microsoft, Google, Amazon, numerous market-moving mergers and antitrust investigations. She has previously reported on Greek politics and companies, when Greece’s entry into the eurozone meant it punched above its weight on the international stage, as well as Dutch corporate giants and the quirks of Dutch society and culture that never fail to charm readers.

Supantha leads the European Technology and Telecoms coverage, with a special focus on emerging technologies such as AI and 5G. He has been a journalist for about 18 years. He joined Reuters in 2006 and has covered a variety of beats ranging from financial sector to technology. He is based in Stockholm, Sweden. 

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