February 10, 2025 DMABy DICOPO

Digital Markets Act: Commission Refuses Gatekeeper Designation for X

The European Commission has opted not to appoint X Holdings Corp. (controlled by Musk Group) as a gatekeeper under the Digital Markets Act (DMA). Though it qualified under some quantitative conditions, X’s poor user interaction and minimal control over business users made it the subject of rejection. The Commission underlined that regulatory obligations under the DMA ought to be proportional to the market power of a platform. Although the decision is not yet final, any subsequent changes in X’s market standing may trigger a re-evaluation.