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Microsoft (MSFT) Seeks to Dodge EU's Gatekeepers Tag for Bing
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Microsoft (MSFT - Free Report) is reportedly making efforts to keep the Bing search engine off the European Union's (EU) gatekeeper list, which would subject it to new obligations and regulations under the Digital Markets Act (DMA).
The DMA is an attempt by the EU to assert greater control over the activities of major tech companies operating in the European market.
The DMA specifies certain criteria to identify gatekeeper companies. These criteria include having an annual turnover of more than €7.5 billion, a market capitalization above €75 billion and active monthly users in the EU of at least 45 million.
The DMA requires gatekeepers to share data, link to competitors and make their services interoperable with rival apps. This is intended to open up markets and enable competition from European start-ups.
However, there are concerns that some of these requirements might inadvertently benefit Alphabet (GOOGL - Free Report) -owned Google.
Microsoft’s search engine Bing is far less popular than Google Search and imposing the same obligations as on Google Search would put it at a disadvantage. Bing commands about 3% of the share of global search, according to StatCounter. Google Search, in contrast, commands about 91% of the global search engine market share.
The EU is likely to unveil its list of gatekeepers on Sep 6, subjecting tech giants like Apple (AAPL - Free Report) , Amazon.com, Google and Meta Platforms Inc. (META - Free Report) to strict regulations aimed at promoting competition and interoperability.
The DMA is expected to face legal challenges, with tech companies potentially challenging the European Commission's decisions in the EU courts.
Apple has joined Microsoft in defending the inclusion of its iMessage service as a gatekeeper. The tech giant may argue that iMessage falls short of DMA’s user threshold of 45 million monthly users, exempting it from obligations like facilitating rival apps, including Meta’s WhatsApp.
Apple is actively working on methods to enable third-party app stores and sideloading on its iOS platform to comply with anticipated rules.
This dispute is part of a broader trend of increased regulatory scrutiny of tech giants by European authorities. Other pieces of legislation, such as the Digital Services Act, are also designed to regulate the Internet and digital services.
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Microsoft (MSFT) Seeks to Dodge EU's Gatekeepers Tag for Bing
Microsoft (MSFT - Free Report) is reportedly making efforts to keep the Bing search engine off the European Union's (EU) gatekeeper list, which would subject it to new obligations and regulations under the Digital Markets Act (DMA).
The DMA is an attempt by the EU to assert greater control over the activities of major tech companies operating in the European market.
The DMA specifies certain criteria to identify gatekeeper companies. These criteria include having an annual turnover of more than €7.5 billion, a market capitalization above €75 billion and active monthly users in the EU of at least 45 million.
The DMA requires gatekeepers to share data, link to competitors and make their services interoperable with rival apps. This is intended to open up markets and enable competition from European start-ups.
However, there are concerns that some of these requirements might inadvertently benefit Alphabet (GOOGL - Free Report) -owned Google.
Microsoft’s search engine Bing is far less popular than Google Search and imposing the same obligations as on Google Search would put it at a disadvantage. Bing commands about 3% of the share of global search, according to StatCounter. Google Search, in contrast, commands about 91% of the global search engine market share.
Shares of this Zacks Rank #3 (Hold) company have gained 37% year to date compared with the Zacks Computer and Technology sector’s rise of 40.4% in the same period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microsoft Corporation Price and Consensus
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Other Tech Giants Defying EU’s New Law
The EU is likely to unveil its list of gatekeepers on Sep 6, subjecting tech giants like Apple (AAPL - Free Report) , Amazon.com, Google and Meta Platforms Inc. (META - Free Report) to strict regulations aimed at promoting competition and interoperability.
The DMA is expected to face legal challenges, with tech companies potentially challenging the European Commission's decisions in the EU courts.
Apple has joined Microsoft in defending the inclusion of its iMessage service as a gatekeeper. The tech giant may argue that iMessage falls short of DMA’s user threshold of 45 million monthly users, exempting it from obligations like facilitating rival apps, including Meta’s WhatsApp.
Apple is actively working on methods to enable third-party app stores and sideloading on its iOS platform to comply with anticipated rules.
This dispute is part of a broader trend of increased regulatory scrutiny of tech giants by European authorities. Other pieces of legislation, such as the Digital Services Act, are also designed to regulate the Internet and digital services.