Apple's iMessage To Follow WhatsApp In Opening Up To Third-Party Chats Amid EU Push?
Portfolio Pulse from Ananya Gairola
The EU's Digital Markets Act is pressuring tech giants like Meta Platforms Inc. and Apple Inc. to open up their messaging services to third-party chats. WhatsApp, owned by Meta, has already started restructuring to support this interoperability, as seen in the latest iOS beta version. Apple's iMessage may also have to comply, with a final verdict expected soon. Apple has announced plans to support the RCS standard, which could influence the EU's decision regarding iMessage's compliance with antitrust legislation.
January 25, 2024 | 7:29 am
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NEUTRAL IMPACT
Apple's iMessage may need to comply with the EU's DMA and open up to third-party chats, with a final verdict expected soon. Apple's plan to support RCS could influence this decision.
The outcome of the EU's decision on whether iMessage must comply with the DMA is still uncertain. Apple's move to support RCS could mitigate the need for further changes to iMessage. The short-term impact on Apple's stock is neutral until the final verdict is announced.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Meta's WhatsApp is adapting to the EU's DMA by restructuring to support third-party chats, which could increase its interoperability and potentially its user base in the EU.
The adaptation of WhatsApp to support third-party chats in response to the EU's DMA is a proactive move that could enhance its competitiveness and user experience in the EU market. This could lead to increased user retention and growth, positively impacting Meta's stock in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80