Meta loses challenge against EU gatekeeper label for Messenger

By Foo Yun ‌Chee and ​Inti ​Landauro

BRUSSELS, June 3 (Reuters) - Meta Platforms lost its fight on Wednesday against the EU's labelling of ‌its Messenger app as a powerful 'gatekeeper', which places ⁠obligations on tech companies with significant influence.

Europe's second-highest court upheld ‌the European Commission's finding ‌that Messenger is an important gateway for businesses to reach users, triggering obligations under the bloc's Digital ​Markets Act.

"The Commission did not err in finding that Messenger individually is an important gateway," judges ⁠said.

The Luxembourg-based General Court, however, annulled the gatekeeper designation for Meta's Marketplace ​platform, saying the Commission failed to adequately explain its reasoning. The ruling is largely academic ​after the Commission already dropped ‌the label last year when Marketplace fell below the user threshold.

"We welcome the Court's ⁠judgment on Marketplace, which confirms that it should not have been designated in the first place. We are reviewing ⁠the Court’s finding on Messenger and will consider our options," ​a Meta company spokesperson said.

The DMA, which became applicable in 2023, 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 ruling can be appealed to the Court of ⁠Justice of the European ‌Union, Europe's highest.

The ​case is T-1078/23Meta Platform v Commission.

(Reporting by Foo Yun Chee, editing by Inti Landauro; Elaine ‌Hardcastle)

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