Apple's iMessage Escapes Antitrust Threat, EU Says It Does Not Qualify As A 'Gatekeeper Service'
Portfolio Pulse from Rounak Jain
The European Union has concluded that Apple Inc.'s iMessage and Microsoft Corp.'s Bing, Edge, and Advertising services do not qualify as 'gatekeeper services' under the Digital Markets Act (DMA), ending investigations that began in September. Despite meeting the quantitative criteria of the DMA, both companies successfully argued against the designation. The decision does not change Apple and Microsoft's status as gatekeepers, established on Sept. 5, 2023. Alphabet Inc.'s Google had previously pushed for iMessage to be recognized as a 'core' service, aiming for interoperability with other messaging platforms.
February 13, 2024 | 1:42 pm
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NEUTRAL IMPACT
Alphabet Inc.'s Google had advocated for iMessage to be recognized as a 'core' service, aiming for interoperability with other messaging platforms.
Google's involvement in advocating for iMessage's designation as a 'core' service underlines its strategic interests in promoting interoperability among messaging services. However, the EU's decision does not directly impact Google, making the short-term impact neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Alphabet Inc.'s Google had advocated for iMessage to be recognized as a 'core' service, aiming for interoperability with other messaging platforms.
Google's involvement in advocating for iMessage's designation as a 'core' service underlines its strategic interests in promoting interoperability among messaging services. However, the EU's decision does not directly impact Google, making the short-term impact neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Apple Inc.'s iMessage has been cleared by the EU of being a 'gatekeeper service', ending the antitrust investigation.
The decision by the EU to not classify iMessage as a 'gatekeeper service' under the DMA removes a significant regulatory hurdle for Apple, potentially avoiding restrictions and penalties that could have impacted its operations and market perception negatively.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Microsoft Corp.'s Bing, Edge, and Advertising services have also been cleared by the EU, not qualifying as 'gatekeeper services'.
The EU's decision to exclude Microsoft's Bing, Edge, and Advertising from 'gatekeeper services' designation under the DMA alleviates potential regulatory challenges, fostering a more favorable operational environment for Microsoft.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90