# EU Fee Confirms That X Doesn’t Qualify as Key Enterprise Platform

That is type of a win for X, however type of not.

At the moment, the European Fee has confirmed that the platform previously generally known as Twitter doesn’t presently qualify as a “Gatekeeper” platform beneath the EU Digital Markets Act (DMA), which implies that X gained’t have to stick to EU guidelines round entry and collaboration, as a part of anti-monopoly rules.

Beneath the EU Digital Markets Act (DMA), platforms recognized as gatekeepers should allow third get together methods to inter-operate with their companies (e.g. Meta must let different messaging apps ship messages to WhatsApp), whereas in addition they must let enterprise customers entry the information that they generate of their use of the platform, and supply advert efficiency data for impartial verification.

The intention, primarily, is to make sure truthful competitors available in the market, by making it more durable for the tech giants to squeeze smaller gamers out attributable to their dominant place.

And after investigation, the EU has determined that X gained’t be held to those necessities.

As per the EU Fee:

“At the moment, the Fee discovered that the net social networking service of X shouldn’t be designated as a core platform service beneath the Digital Markets Act (DMA). The choice comes after an in-depth market investigation launched on 13 Might 2024 following the notification by X of its standing of potential gatekeeper. Along with the notification, X additionally submitted rebuttal arguments, explaining why its on-line social networking service mustn’t, in its view, qualify as an vital gateway between companies and shoppers, even when X is deemed to fulfill the quantitative thresholds set out within the DMA.”

So X has been making an attempt to keep away from gatekeeper classification, as it would impose extra reporting and transparency necessities, in addition to the famous inter-connectivity clauses. That’s much more regulatory work for X, so it will want to not fall into that class, if attainable.

However then once more, because the Fee notes:

“The investigation revealed that X is just not an vital gateway for enterprise customers to achieve finish customers.”

That appears not nice, that X, regardless of its a lot touted affect, is just not thought-about vital sufficient within the EU market to qualify as a key connector.

Although it additionally is smart.

X presently has 105 million month-to-month lively customers in Europe, which has declined by round 12 million customers since August 2023. The regular decline in X utilization, mixed with the challenges in its advert enterprise, do counsel that X is shedding relevance on this respect.

For comparability, Meta has round 250 million EU month-to-month actives utilizing each Fb and IG, whereas TikTok has 142 million MAU. Each have met the {qualifications} as gatekeepers within the area, although that’s additionally reflective of the robust efficiency of their advert companies available in the market.

And X is solely not on the identical degree, although the Fee does word that it’s going to proceed to observe the state of affairs, and might reassess at any time.

Supporters of X proprietor Elon Musk, in the meantime, have praised this as “a win for innovation and free speech”. Which it’s not, it has nothing to do with X’s broader mission to permit extra varieties of content material on the platform. However conceptually, with out these additional necessities, possibly, X will likely be extra free to chase this ambition.

Although most likely not. Actually, the ruling solely reveals that X is just not a serious participant within the EU market, and is shedding relevance total. So it’s a win, when it comes to lowered necessities, however a blow, in reflecting that X is behind the competitors.

Perhaps Elon’s “the whole lot app” imaginative and prescient will finally change this. However proper now, X is just not thought-about within the higher tier of enterprise connecting social apps.