Meta loses challenge against EU gatekeeper label for Messenger


FILE PHOTO: EU flag and Meta logo are seen in this illustration created on May 22, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

BRUSSELS, June 3 (Reuters) - Meta Platforms lost ⁠its fight on Wednesday against the EU's labelling ‌of its Messenger app as a powerful 'gatekeeper', which places obligations on tech companies with significant influence.

Europe's second-highest court upheld the European Commission's finding ​that Messenger is an important gateway ⁠for businesses to reach ⁠users, triggering obligations under the bloc's Digital Markets Act.

"The Commission ⁠did ‌not err in finding that Messenger individually is an important gateway," judges said.

The Luxembourg-based General ⁠Court, however, annulled the gatekeeper designation for Meta's ​Marketplace platform, ‌saying the Commission failed to adequately explain its reasoning. ⁠The ruling ​is largely academic after the Commission already dropped the label last year when Marketplace fell below the user threshold.

"We welcome ⁠the Court's judgment on Marketplace, which ​confirms that it should not have been designated in the first place. We are reviewing the Court’s finding on Messenger ⁠and will consider our options," a Meta company spokesperson said.

The DMA, which became applicable in 2023, sets out a list of dos and don'ts to rein in the ​power of Big Tech and create ⁠a level playing field for competitors.

The ruling can be appealed ​to the Court of Justice ‌of the European Union, Europe's highest.

The ​case is T-1078/23Meta Platform v Commission.

(Reporting by Foo Yun Chee, editing by Inti Landauro; Elaine Hardcastle)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Others Also Read