Microsoft and Google have no plans to contest their gatekeeper status in the EU

Microsoft and Google have no plans to contest their gatekeeper status in the EU

Microsoft and Google have no intention to contest the EU regulation requiring them to simplify user transitions between competing services like social media platforms and web browsers. The European Union designated 22 “gatekeeper” services, operated by six major tech companies, to adhere to new rules in its recent crackdown on Big Tech.

The Digital Markets Act (DMA) mandates these gatekeepers to facilitate interoperability among their messaging apps and allow users to select pre-installed apps on their devices. This legislation encompasses services from Alphabet (GOOGL.O), Amazon (AMZN.O), Apple (AAPL.O), Meta (META.O), Microsoft (MSFT.O), and TikTok owner ByteDance.

Entities disagreeing with this classification and its requisites have until November 16 to voice their grievances to the General Court in Luxembourg, which handles cases spanning competition law, trade, and the environment.

Google confirmed it won’t contest the decision. Google, under Alphabet, holds numerous services, notably its Android OS, maps, and search, all subject to stricter DMA regulations. Sources familiar with the matter suggest Google’s strategy involves cooperation rather than confrontation with EU regulators, recognizing its dominant position making it difficult to challenge successfully.

Amazon and Zalando have opposed the Digital Services Act (DSA), a legislation complementing the DMA that increases tech firms’ responsibilities for content shared on their platforms. Amazon, despite previously expressing intent to collaborate with the European Commission, refrained from commenting further.

Microsoft acknowledged its gatekeeper status and pledged to collaborate with the European Commission to meet DMA obligations for Windows and LinkedIn.

Industry insiders suggested that companies like TikTok and Meta might likely file challenges. Meta’s Facebook, Instagram, Marketplace, and WhatsApp fall under gatekeeper status. Both Meta and TikTok declined to comment. TikTok had previously expressed fundamental disagreement with the gatekeeper designation.

Apple, reportedly considering challenging its designation, did not respond to comment requests.