In a recent announcement, the European Commission (EU) has declared that Apple and Microsoft should not be designated as gatekeepers for several core platform services, including Apple's messaging service iMessage, Microsoft's online search engine Bing, web browser Edge, and online advertising service Microsoft Advertising. The decision comes after an in-depth analysis conducted by the EU Commission, with input from relevant stakeholders and the Digital Markets Advisory Committee.

The EU's Digital Markets Act (DMA), which came into force in August, aims to establish transparent regulations for large companies such as Apple and Microsoft and their core platform services. Initially, Apple's iMessage and Microsoft's Edge, Bing, and Microsoft Advertising were considered potential gatekeepers due to their large user base of over 45 million active users in the EU and annual revenue of €7.5 billion.

However, following the EU Commission's investigation, it was found that although these platforms met the quantitative thresholds, none of them qualified as gatekeepers. This determination was reached after careful consideration of all arguments, including the rebuttal requests made by Apple and Microsoft, and consultation with the Digital Markets Advisory Committee.

Despite not being designated as gatekeepers for messaging, search, browser, and advertising services, Apple and Microsoft are still considered gatekeepers in other categories. Apple is deemed a gatekeeper for operating systems such as iOS and browsers like Safari, as well as for intermediation through its App Store platform. Microsoft, on the other hand, is designated as a gatekeeper for its social network platform, LinkedIn.

Had iMessage been designated as a gatekeeper, Apple would have been obligated to make its messaging service interoperable with competing apps. In a similar vein, Microsoft had already been required to stop compelling users of Windows 11 in the EU to use its Edge browser as the default option, to comply with the DMA.

It's worth noting that gatekeepers are subject to fines of up to 10% of their total worldwide annual revenue and up to 20% of revenues for repeated infringements.

The closure of these market investigations under the DMA marks an important step in the EU's efforts to regulate digital platforms and ensure a level playing field in the market. The EU Commission's decision regarding the gatekeeper status of Apple and Microsoft for messaging, search, browser, and advertising services provides clarity on their regulatory obligations and further defines their role within the digital ecosystem.

Overall, the EU's move toward more transparent regulations for large digital platforms reflects the growing need for accountability and fairness in the digital marketplace. As discussions on digital regulations continue, it remains to be seen how the designation of gatekeepers will impact the operations of companies like Apple and Microsoft, and how they will adapt to comply with the evolving regulatory landscape.