In a significant development, the European Commission has decided not to designate Apple’s iMessage and Microsoft’s Bing as "core platform services" under the Digital Markets Act (DMA). This decision means that these services will not be subject to interoperability requirements with other messaging apps or search engines.
What is the Digital Markets Act?
The DMA is a pan-European regulation aimed at promoting fair competition in the digital market. It sets out a series of rules and obligations for companies designated as "gatekeepers" due to their significant market presence. These gatekeepers are required to ensure that their core platform services comply with certain requirements, including interoperability.
Why was Apple’s iMessage and Microsoft’s Bing considered for regulation?
In November last year, the European Commission announced the first list of 22 core platform services under the DMA, which included Apple’s iOS, App Store, and Safari web browser, as well as Microsoft’s Windows OS and LinkedIn social network. As a result, Apple and Microsoft were designated as gatekeepers for these services.
However, both companies argued that certain services, including iMessage and Bing, did not meet the usage bar of 45 million+ monthly active users (and 10,000 business users) required for designation under the DMA. The Commission allowed itself a maximum of five months to consider these arguments and wrap up the investigations.
Commission’s Decision
After conducting its investigations, the European Commission has decided not to designate Apple’s iMessage and Microsoft’s Bing as core platform services. This decision means that these services will not be subject to interoperability requirements with other messaging apps or search engines.
In a statement, an Apple spokesperson welcomed the Commission’s decision: "We thank the Commission for agreeing with us that iMessage should not be designated under the DMA. iMessage is a great service that Apple users love because it provides an easy way to communicate with friends and family while offering industry-leading privacy and security protections."
What does this mean for Apple and Microsoft?
The decision not to designate these services as core platform services means that Apple and Microsoft will not have to implement interoperability requirements or other obligations under the DMA. However, the Commission has noted that it "will continue to monitor the developments on the market with respect to these services, should any substantial changes arise."
This implies that if there are significant changes in market share or usage patterns for iMessage or Bing, the Commission may reassess its decision and potentially designate these services as core platform services.
Implications for Tech Industry
The decision not to designate Apple’s iMessage and Microsoft’s Bing as core platform services has significant implications for the tech industry. It means that companies will not have to implement interoperability requirements or other obligations under the DMA, which could be a major burden on smaller companies trying to compete with these giants.
However, it also raises questions about whether the Commission is doing enough to promote fair competition in the digital market. The DMA was designed to prevent companies from abusing their dominant position and stifle innovation. If certain services are not designated as core platform services, how can the Commission ensure that smaller companies have a level playing field?
Conclusion
The European Commission’s decision not to designate Apple’s iMessage and Microsoft’s Bing as core platform services under the DMA is a significant development for the tech industry. While it may be a relief for these companies, it also raises questions about whether the Commission is doing enough to promote fair competition in the digital market.
As the tech landscape continues to evolve, it will be interesting to see how the Commission’s decision plays out and what implications it has for the industry as a whole.