Meta Loses EU Challenge Over Messenger Gatekeeper Designation
Meta Platforms has lost its legal challenge against the European Union’s decision to classify its Messenger app as a powerful “gatekeeper” under the bloc’s Digital Markets Act (DMA). The ruling reinforces the obligations placed on major technology companies that hold significant influence in digital markets.
The decision was handed down by Europe’s second-highest court on Wednesday. Judges upheld the European Commission’s assessment that Messenger serves as an important gateway through which businesses can reach users. As a result, the platform remains subject to the requirements set out under the DMA.
Court Upholds Messenger Designation
The Luxembourg-based General Court agreed with the Commission’s position regarding Messenger. Judges stated that the Commission had not made an error in determining that Messenger individually functions as an important gateway for businesses seeking access to users.
The ruling means that Messenger will continue to fall within the scope of the DMA’s regulatory framework. Consequently, Meta must comply with the obligations imposed on designated gatekeepers under the legislation.
The DMA was introduced to address concerns about the market power of large technology companies. Moreover, it aims to create fairer conditions for competitors operating within the European digital economy.
Marketplace Label Annulled
While Meta was unsuccessful in its challenge regarding Messenger, the company secured a partial victory concerning its Marketplace platform.
The court annulled the gatekeeper designation for Marketplace, finding that the European Commission had not sufficiently explained the reasoning behind its decision. However, the practical impact of this finding is limited.
Last year, the Commission had already removed the gatekeeper label from Marketplace after the platform fell below the required user threshold. Therefore, the court’s decision on Marketplace is largely academic.
Meta Reviews Legal Options
Following the judgment, a Meta spokesperson welcomed the court’s findings on Marketplace. The company said the ruling confirmed that the platform should not have received the designation in the first place.
At the same time, Meta indicated that it is reviewing the court’s conclusions regarding Messenger. The company stated that it will consider its available options before deciding on any further action.
Digital Markets Act Remains Central
The Digital Markets Act became applicable in 2023 and established a framework of obligations designed to curb the influence of dominant technology platforms. In addition, the legislation sets out a series of requirements and restrictions intended to ensure a more level playing field for competitors.
Although the General Court has upheld the Messenger designation, the legal process may not be over. The ruling can still be appealed to the Court of Justice of the European Union, which is the bloc’s highest court.
With inputs from Reuters