BRUSSELS, Sept 13 (Reuters) - Elon Musk's social media platform, X, is unlikely to fall under the EU's landmark tech regulations aimed at curbing the influence of Big Tech, as it does not meet the criteria for being designated as a "gatekeeper," according to a source familiar with the situation on Friday.
In May, the European Commission launched an investigation into X after the company challenged earlier indications that it might be required to comply with the Digital Markets Act (DMA), which outlines specific obligations for major tech companies.
X has stated that it does not meet the criteria of being a significant intermediary between businesses and consumers. According to the Digital Markets Act (DMA), companies are classified as gatekeepers if they have over 45 million monthly active users and a market capitalization exceeding 75 billion euros ($83 billion). Gatekeepers are required to make their messaging platforms interoperable with competitors and allow users to choose which apps to pre-install on their devices. Additionally, they cannot prioritize their own services over those of rivals or prevent users from uninstalling pre-installed software or apps.
The Commission, which had initially stated it would conclude its investigation within five months, declined to comment. X faces greater challenges under the EU’s newly implemented Digital Services Act (DSA), which mandates that large online platforms take stronger action against illegal and harmful content or face fines of up to 6% of their global annual revenue. X is currently the subject of several ongoing DSA investigations. Bloomberg was the first to report that X is likely to avoid the EU's tech regulations.