Elon Musk's social media platform X is unlikely to be subject to landmark EU technology rules aimed at curbing the power of Big Tech because it does not meet the rules' oversight criteria, a person with direct knowledge of the matter said on Friday.
In May, the European Commission opened an investigation into X after the company refuted earlier indications that it might have to comply with the Digital Markets Act (DMA), which imposes a list of dos and don'ts on big tech companies.
X has said it does not qualify as an important gateway between businesses and consumers.
Under the DMA, companies with more than 45 million monthly active users and a market capitalization of €75 billion ($83 billion) are classified as gatekeepers. They must make their messaging apps interoperable with those of rivals and let users decide which apps to preinstall on their devices. They are also not allowed to favor their own services over those of rivals or prevent users from removing preinstalled software or apps.
The commission, which had said it would conclude its investigation within five months, declined to comment.
X's biggest challenges relate to the EU's recently adopted Digital Services Act (DSA), which requires large online platforms to do more to combat illegal and harmful content online or risk fines of up to 6% of their global annual turnover.
X is the target of several ongoing DSA investigations.
Agency was the first to report that X will likely avoid EU tech rules.
© Thomson Reuters 2024
(This story has not been edited by Agency staff and is auto-generated from a syndicated feed.)