X excluded from EU 'Big Tech Abuse Prevention Act' target

Tesla CEO Elon Musk-owned social media platform X will be able to avoid EU regulations on the "Big Tech Gapjil Prevention Act."

After conducting an in-depth investigation on the 16th local time, the European Commission said it had decided not to designate X as a "gatekeeper" company subject to the Digital Markets Act (DMA).

It is a de facto reversal of the preliminary investigation decision in May, which was classified as a potential gatekeeper.

X submitted a position that even if it meets the requirements such as the number of users and sales to designate it as a "gatekeeper," it is difficult to say that it acts as a "gateway" to connect users with multiple service companies, and the Commission accepted it.

However, the Commission said, "We will continue to monitor market conditions and watch for significant changes."

The Digital Market Act (DMA) is a law that specifically regulates platform operators of a certain size by designating them as "gatekeepers" to prevent platform operators from abusing their market power.

Seven companies, including Apple, have been designated as gatekeepers.

'gatekeeper' may be fined up to 10% of global sales for violations of the DMA, and if deemed a repeat violation, the penalty may rise to 20%.