EU Designates Booking.com as Gatekeeper, Investigates X Under Digital Markets Act
PARIS, May 13 (Reuters) – The European Commission has officially designated the hotel reservation platform Booking.com as a “gatekeeper,” placing it under stringent EU obligations as per the Digital Markets Act (DMA). Concurrently, the Commission has launched a market investigation into the social media network X to assess its gatekeeper status, while confirming that X Ads and TikTok Ads do not qualify as gatekeepers.
In a statement released on Monday, the Commission highlighted that Booking.com meets the criteria set under the DMA, which the company itself concurred with. The designation mandates Booking.com to submit a comprehensive compliance report within six months. However, certain DMA rules, including the obligation to notify the Commission of any significant mergers or acquisitions in the digital sector, are effective immediately.
The scrutiny extends to X, formerly known as Twitter, which is opposing its designation as a gatekeeper. The Commission’s ongoing investigation aims to address and evaluate X’s rebuttal comprehensively.
Additionally, ByteDance, identified as a gatekeeper in July of the previous year, has contested this classification at Europe’s second-highest court. The DMA, recognized as one of the toughest regulatory frameworks, aims to curb the market dominance of tech giants by enforcing stricter content moderation, promoting fair competition, and enhancing consumer flexibility in switching between services.
Under DMA, entities with over 45 million monthly active users and a market capitalisation exceeding 75 billion euros are identified as gatekeepers, necessitating adherence to a core platform service for business users.
For non-compliant gatekeepers, the European Commission can impose fines up to 10% of the company’s total global turnover, which can escalate to 20% for repeated violations. Restrictions on acquisition activities are also a potential punitive measure.
In related developments, tech majors such as Alphabet, Amazon, Apple, Meta, and Microsoft were previously designated as gatekeepers. Starting March 7, these companies are required to ensure their messaging apps are interoperable with competitors, offer users a choice in pre-installed apps, and eliminate biases favoring their own services.
The European Commission’s ongoing efforts underscore its commitment to ensuring a fair and competitive digital market landscape. For more insights and updates, subscribe to the Technology Roundup newsletter.
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