The EU Clears Apple and Microsoft: iMessage and Edge Are Exempt from Digital Markets Act
The European Union has decided not to impose any concessions on Apple and Microsoft in relation to their popular products under the Digital Markets Act (DMA). This means that Apple’s iMessage and Microsoft’s Edge browser, Bing search function, and advertising service will remain unchanged in the region. The European Commission announced the closure of its investigations into these offerings, confirming that Apple and Microsoft are indeed “gatekeepers” in the industry, but iMessage, Bing, and Edge don’t fall into that category.
In a news update on Tuesday, the Commission stated, “iMessage, Bing, Edge, and Microsoft Advertising do not qualify as gatekeeper services.” However, it added that their market developments will continue to be monitored, with the possibility of future changes being considered. Both Microsoft and Apple had argued back in September that Bing and iMessage should be exempt from the DMA due to their limited usage. Microsoft revealed that Bing only accounts for 3% of all search engine traffic, while Apple didn’t provide specific numbers publicly. In December, reports surfaced suggesting that the ruling would likely favor Apple regarding iMessage.
While Apple doesn’t have to make any tweaks to iMessage to comply with the DMA, the company has still had to follow new EU regulations in other areas. Last month, Apple initiated the opening of EU iOS systems, enabling users to download apps from third-party stores. Additionally, EU app developers can now offer more payment options to users following the introduction of the DMA. However, some, such as Epic Games CEO Tim Sweeney, argue that the DMA regulations imposed on Apple are still inadequate. Sweeney has accused Apple of implementing “junk fees” as part of an “illegal anticompetitive scheme.”
In the case of Microsoft Edge, researchers funded by Mozilla recently alleged that the company utilizes “harmful design” tactics to retain users on Edge. The DMA is not limited to Apple and Microsoft but is also being applied to other major tech firms and social media platforms like Meta and ByteDance, which owns TikTok. Amazon and Google’s parent company, Alphabet, have also been designated as gatekeepers under the DMA.
With the EU’s decision to exempt iMessage, Bing, and Edge from the DMA, both Apple and Microsoft can continue offering their services without major alterations in the European market. However, the Commission’s ongoing monitoring suggests that changes may still be possible in the future.
Analyst comment
Neutral news.
As an analyst, the market for Apple and Microsoft in the European region will remain stable as their popular products, including iMessage and Edge, are exempt from the Digital Markets Act. However, ongoing monitoring by the European Commission indicates that future changes are still possible. This decision allows both companies to continue offering their services without significant alterations for now.
