PARIS, May 13 (Reuters) - The European Commission said
on Monday it had designated hotel reservation website
Booking.com as a "gatekeeper", which subjects it to strict EU
obligations, and has opened an investigation to further
determine the regulatory status of social media network X.
Online advertising services X Ads and TikTok Ads as such did
not qualify as gatekeepers under the EU Digital Markets Act
(DMA), the EU added.
The Commission said in March that Elon Musk's X, TikTok
owner ByteDance and Booking.com may meet EU criteria subjecting
them to tough tech rules as so-called gatekeepers.
While the EU on Monday said Booking.com fell under the DMA -
in line with the company's own view - it had opened a market
investigation to further assess the rebuttal lodged by X,
opposing the gatekeeper status.
ByteDance was labelled a gatekeeper in July last year but
TikTok has challenged that at Europe's second-highest court.
The Digital Markets Act is one of the most stringent
regulations targeting tech giants' market dominance, imposing
tougher obligations to moderate content, allow fair competition
and make it easier for consumers to switch between services.
It designates companies with more than 45 million monthly
active users and 75 billion euros ($81 billion) in market
capitalisation as gatekeepers, providing a core platform service
for business users.
Following its designation as gatekeeper, Booking.com now
has six months to submit a detailed compliance report, the
Commission said. However, some DMA rules are applicable with
immediate effect, notably the obligation to inform the
Commission of any intended concentration in the digital sector.
If a gatekeeper does not comply with the DMA, the
Commission can impose fines of up to 10% of the company's total
worldwide turnover, which can go up to 20% in case of repeated
infringements. It can also impose limits on takeover activity.
Alphabet, Amazon ( AMZN ), Apple ( AAPL ),
Meta and Microsoft ( MSFT ) were designated gatekeepers
last year.
From March 7, they must make their messaging apps
interoperable with rivals and let users decide which apps to
pre-install on their devices. They are also not allowed to
favour their own services over rivals' or prevent users from
removing pre-installed software or apps.