Microsoft and Apple Secure a Major Victory as iMessage and Bing Are Released From EU Regulations

Paresh Jadhav

10 months ago

Apple’s iMessage and Microsoft’s Bing search engine have both received relief from stricter European Union rules designed to limit tech giants. Under these regulations, so-called gatekeeper services must open up their infrastructures so rivals may compete more freely with them.

Apple and Microsoft have both made efforts to exempt their core platform services from new EU regulations governing platform services such as Amazon, Google, Alphabet, Meta, TikTok owner ByteDance and others.

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iMessage

iMessage was exempted from European Union regulations that mandate major tech companies to open up their services and allow other apps onto their platforms, without favoring their own services in search results or app downloads. When the Digital Markets Act goes into effect in three weeks, major tech companies such as Google, Amazon, Apple, Meta Platforms, Microsoft and ByteDance must allow other apps onto their platforms without favoring their own in search results or app downloads.

After conducting a five-month investigation, the EU determined that Apple’s messaging services iMessage, Bing and Edge do not meet quantitative thresholds for gatekeeper services and therefore don’t fall under their purview; by not being designated gatekeeper services it will likely avoid having to open up its messaging services to non-iPhone users or ensure interoperability with other services like WhatsApp and Signal.

Antitrust experts view this move by the Commission as positive, as it shows they considered how the new regulations impact real-life market realities rather than applying quantitative thresholds. But it remains too soon to tell whether stringent regulation is needed to curb tech giants’ abuse of market power.

Bing

The European Commission’s recent decision to close its market investigations of Apple iMessage and Microsoft Bing search engine and Edge browser have raised serious concerns over how gatekeeper services are defined. If these services had been classified as gatekeepers, a variety of anticompetition restrictions could have been placed upon them.

Reuters reports that the EU Digital Markets Act, set to come into force within three weeks, requires tech giants to enable third-party apps or app stores on their platforms and make it easy for users to switch between default services and rival ones more quickly. They cannot favour their own offerings over competitors.

Apple and Microsoft both argue that their services do not qualify as gatekeepers; however, core platform services from both companies, including Apple’s App Store and iOS operating system as well as Linkedin social network and Microsoft Windows, remain subject to new rules requiring interoperability with rival services and providing users with options for messaging apps.

Edge

Apple and Microsoft celebrated yet another victory when EU regulators decided that Bing, Edge and Microsoft Advertising shouldn’t be designated “gatekeeper” services that must open to rival apps – an important move that allows these platforms to continue innovating without being subject to anticompetition requirements as other tech titans.

Apple and Microsoft had both sought to remove iMessage and Bing from any list of services subject to new restrictions due to user numbers; both companies argued these services lacked enough users for qualification as gatekeepers.

The European Commission will soon decide which services should be designated gatekeepers, with those firms facing stringent obligations beginning next month. They include Google’s Alphabet, Amazon, TikTok maker ByteDance, Facebook Owner Meta and Microsoft Bing and Edge search engines and browser. IMessage was excluded because it relies exclusively on Apple hardware; users from both Android devices as well as iOS have reported compatibility issues with it.

Microsoft Advertising

Microsoft’s Bing search engine, Edge browser and Advertising service may avoid Europe’s new rules on gatekeeper services. The EU recently concluded an investigation of these offerings and determined they do not meet the quantitative thresholds necessary under the Digital Markets Act to be classified as gatekeepers.

EU Law now in force requires 22 core platform services from Alphabet’s Alphabet, Amazon, Apple, TikTok parent ByteDance and Facebook Meta to comply with stringent do’s and don’ts; specifically prohibiting them from favoring their own apps over competitors as well as restricting user data access.

But Bing and Edge did not meet EU’s thresholds, according to its statement released Tuesday. Their noncompliance is expected not to impact other products such as Windows operating system and LinkedIn professional network which continue to act as gatekeepers, while Bing/Edge may announce measures soon in accordance with rules.