EU Court Upholds Stricter Competition Rules for Meta's Messenger

Meta had partially accepted the Commission's decision but sued against the inclusion of two specific services – Marketplace and Messenger – on the gatekeeper list. The lawsuit concerning Marketplace was successful; however, this service had already been removed from the relevant list a year before the ruling. Consequently, only Messenger remained the focus of the proceedings.

The losing party can still appeal the ruling of the EU Court before the European Court of Justice (ECJ). This means that the legal recourse within the EU institutions is not necessarily concluded. However, the judges of the first instance did not express any significant doubts about the assessment that Messenger should be classified as an important access point for business customers to end-users.

Background of the DMA

The Digital Markets Act has been in force since May 2023 and aims to curb the power of large digital corporations. Affected companies – the so-called gatekeepers – must, among other things, enable interoperability with smaller services, not unduly favor their own offerings, and disclose certain data practices. The EU Commission can impose fines in the billions for violations.

Impact on Competition

With the confirmation of Messenger's gatekeeper status, Meta must continue to ensure that the service is interoperable with third-party applications. Specifically, this means that users should in the future be able to receive and send messages from other messenger services without necessarily relying on Meta's own offerings.

The decision is part of a series of similar proceedings in which large digital companies are challenging their DMA classification. With this package of regulations, the EU Commission aims to increase consumer choice in Europe and reduce dependence on individual platforms.

Impact on Competition

Competition lawyers see the ruling as a signal to other digital corporations that classification as a gatekeeper can withstand legal scrutiny. For smaller providers of messenger services, the obligation for interoperability could increase the reach of their products, as they could more easily connect with millions of users of the Meta service.

Meta has not yet publicly commented on the ruling. The company has repeatedly argued in the past that DMA regulation is innovation-hostile and hinders the development of European products. Observers expect the company to consider its next steps in the ongoing legal dispute.

Overall, the decision from Luxembourg shows that the EU is consistently pursuing its course in digital regulation, which it embarked upon in 2023. Based on the ruling, the competent competition authority can now continue to monitor Messenger's compliance with DMA obligations and impose sanctions for violations.