Microsoft and Google decide not to challenge gatekeeper label

Brussels/Stockholm — Microsoft and Google will not challenge an EU law requiring them to make it easier for users to move between competing services such as social media platforms and internet browsers.

As part of its latest crackdown on Big Tech, the EU in September picked 22 “gatekeeper” services, run by six of the world’s biggest tech companies, to face new rules.

The Digital Markets Act requires these gatekeepers to interoperate their messaging apps with competitors and allow users to decide which apps they preinstall on their devices. The act will apply to services from Alphabet, Amazon, Apple, Meta, Microsoft and TikTok owner ByteDance.

Those disagreeing with the label and its requirements have until November 16 to take their complaint to the Luxembourg-based General Court, which deals with cases ranging from competition law to trade and the environment.

A spokesperson at Alphabet’s Google said it will not appeal against the decision. Google has the highest number of services, including its Android operating system, maps and search, which will face tougher rules under the Digital Markets Act.

Google has adopted a strategy in recent years of working with rather than fighting EU regulators, and it would be hard for the company to win as it is the dominant player, according to sources familiar with the matter.

Companies such as Zalando and Amazon have challenged the Digital Services Act, seen as a companion legislation to the Digital Markets Act, which imposes greater responsibilities on tech firms for the content shared on their sites.

Amazon, which has previously said it will continue to work constructively with the European Commission, declined to comment.

“We accept our designation as a gatekeeper under the Digital Markets Act and will continue to work with the European Commission to meet the obligations imposed on Windows and LinkedIn under the [act],” a Microsoft spokesperson said.

Industry sources said other companies, such as TikTok and Meta, are likely to file challenges. Meta’s Facebook, Instagram, Marketplace and WhatsApp qualified as gatekeepers. 

Meta and TikTok declined to comment. TikTok has earlier said that it fundamentally disagreed with the gatekeeper designation.

Apple, which Bloomberg News reported on Friday is also likely to challenge its designation, did not respond to requests for comment.

Reuters