Brussels (Brussels Morning) – The European Commission has designated under the Digital Markets Act (DMA), Booking as a gatekeeper for its online intermediation service Booking.com and chose not to designate X Ads and TikTok Ads. Similarly, the Commission has extended a market investigation to further evaluate the rebuttal submitted concerning the online social networking service X.
The latest decisions follow an assessment process conducted by the European Commission after receiving the notifications of the three players regarding their potential status as gatekeepers on 1 March 2024.
Is Booking Designated as a Gatekeeper by the European Commission?
According to the European Commission, Based on Booking’s self-assessment presented on 1 March 2024 that it meets the applicable thresholds, the Commission has affirmed that this core platform service constitutes an essential gateway between businesses and consumers.
Why Did the Commission Open a Market Investigation for X?
On the other hand, the Commission has opened a market investigation to further evaluate the rebuttal submitted on 1 March 2024 about the online social networking service X. This rebuttal claims that, despite meeting the points, X does not qualify as an important gateway between corporations and consumers. The investigation should be concluded within five months.
What Led to the Commission’s Decision on X Ads?
Another rebuttal was submitted regarding the online advertising service X Ads. The Commission has figured that, although X Ads meets the quantitative designation entries under the DMA, this core platform service does not qualify as an essential gateway. Therefore, the Commission chose not to designate X Ads.
Lastly, the Commission acquired on 1 March 2024 the notification of ByteDance’s online advertising service TikTok Ads, including a rebuttal request. The Commission has found that, although TikTok Ads satisfies the quantitative designation thresholds under the DMA, this core platform service does not qualify as a critical gateway. Consequently, the Commission chose not to designate TikTok Ads either.
What measures are required To Comply with DMA Obligations?
In the next steps for the designated gatekeeper Following its designation, Booking now has six months to yield with the relevant obligations under the DMA, showing more choice and freedom to end users and fair entrance of business users to the gatekeeper services. Booking has six months to present a detailed compliance report in which it outlines how it concedes with each of the responsibilities of the DMA.
However, some of the DMA’s obligations start involving immediate effect, for example, the obligation to notify the Commission of any intended concentration in the digital sector.
What Penalties Can Gatekeepers Face for DMA Non-Compliance?
The Commission will observe the effective implementation and compliance with these obligations. In case a gatekeeper does not concede with the obligations laid down by the DMA, the Commission can charge fines of up to 10% of the company’s total worldwide turnover, which can go up to 20% in case of reprised infringements.Â
In case of systematic violations, the Commission is also authorised to adopt additional remedies such as obliging a gatekeeper to sell a business or portions of it or banning the gatekeeper from purchasing additional services related to systemic non-compliance.
What Does the DMA Aim to Achieve in the Digital Sector?
The DMA strives to ensure contestable and fair markets in the digital sector. It handles gatekeepers, which are large digital platforms that deliver an important gateway between business users and consumers, whose function can grant them the power to serve as bottlenecks in the digital economy.
Which Companies Are Designated Gatekeepers Under the DMA?
Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft, the six gatekeepers specified by the Commission on 6 September 2023, had to fully concede with all DMA obligations by 7 March 2024. The Commission considered the compliance reports setting out gatekeepers’ compliance actions, and gathered feedback from stakeholders, including in the context of workshops.
