Microsoft, Google to not challenge EU gatekeeper designation

By Foo Yun Chee and Supantha Mukherjee

BRUSSELS/STOCKHOLM (Reuters) – Microsoft (NASDAQ:) and Alphabet (NASDAQ:)’s Google will not challenge an EU law that would require them to make it easier for people to move between competing services – such as social media platforms and internet browsers, the companies said.

In September, the European Union picked out 22 “gatekeeper” services, run by six of the biggest tech companies in the world, to face new rules as part of its latest crackdown on Big Tech.

The Digital Markets Act (DMA) targets the market clout of top technology companies and the “gatekeepers” are required to inter-operate their messaging apps with rivals and let users decide which apps to pre-install on their devices.

The DMA will apply to services from Alphabet, Amazon (NASDAQ:), Apple (NASDAQ:), Meta, Microsoft and TikTok owner ByteDance.

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

“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 DMA,” a Microsoft spokesperson said.

According to industry sources, other companies such as TikTok could likely file challenges.

A TikTok spokesperson earlier said that they “fundamentally disagree” with the gatekeeper designation. The company did not respond to requests for comment on Tuesday.

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

Google has the highest number of services, including its Android operating system, Maps and Search, which will face tougher rules under the DMA. Meta’s Facebook (NASDAQ:), Instagram, Marketplace, and WhatsApp also qualified as gatekeepers.

A Google spokesperson said they will not appeal the decision. Meta and Amazon did not respond to requests for comment.