X (ex-Twitter) evades stricter rules in Europe because it’s ‘too small’

OX (formerly Twitter) does not qualify as a “Watchdog” company under the Digital Markets Act (DMA) in Europe. THE the company is not seen as an important channel for connecting businesses and end consumersFollowing an investigation by the European Commission.

“Following a thorough consideration of all the arguments, including input from relevant stakeholders, and after consultation with the Digital Markets Advisory Committee, the Commission finds that does not qualify as a gatekeeper regarding your online social networking service“, pointed out the European Commission in a publication.

Although it is currently classified as a “gatekeeper” company, the European Commission We will continue to monitor market development. Therefore, if X meets the specified criteria again, the company will be able to enter the category.

In order for a company to be considered a gatekeeper, it must be “large enough to influence the domestic market” of the economic bloc. The company must record annual turnover equal to or greater than €7.5 billion in the European Economic Area in the last three financial years – This is not the case for X.

X could not reach the turnover quota

According to reports provided by the platform, the business volume was below the quota in 2022, the year when Elon Musk bought Twitter.

In the arguments presented by X, the company reveals that there has been a decrease in the number of advertising customers in the last 15 months and a decrease in the prices of these services.

In another document, X also argued: It is quite low compared to its competitors in terms of the number of monthly active users. The company says its numbers are 133% lower than Meta platforms (Facebook and Instagram), 60% lower than LinkedIn, and 27% lower than TikTok.

Should not be classified as a “gatekeeper” Removes X from the view of local regulatory agenciesbut this is not necessarily a good sign. It does not have to comply with standards required by law; This is something many giants will likely benefit from.

But this only happens because the company is too small to be considered relevant. Although the decision is in favor of the company, it does not alleviate the suspicion that the situation is not very good.