Key insights
- The EU's General Court partially sided with Meta, overturning the 'gatekeeper' label for Marketplace under the Digital Markets Act due to insufficient reasoning, but upheld the designation for Messenger. This ruling impacts Meta's regulatory obligations in Europe, potentially affecting its business practices and competitive landscape within the EU. While the direct impact on US equities is limited, it highlights ongoing regulatory scrutiny of large tech firms globally.
BRUSSELS, June 3 (Reuters) - Europe’s second-highest court on Wednesday backed Meta Platforms’ fight against the labelling of its Marketplace platform as a gatekeeper under EU rules but rejected its challenge against the same designation for its messaging app Messenger.
"The decision does not satisfy the requirements in terms of reasoning as regards Marketplace, in that it allows neither Meta to understand the reasons for its classification as a core platform service that is an online intermediation service nor the Courts of the European Union to exercise their power of review," the General Court said.
Meta took its grievance to the Luxembourg-based tribunal after the European Commission said both services were important gateways for businesses to reach users under the Digital Markets Act because they met the quantitative criteria.
The DMA 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 case is T-1078/23Meta Platform v Commission.
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