Elon Musk’s X deemed too small for EU crackdown on big tech’s power

Elon Musk’s social media platform X, formerly known as Twitter, is expected to avoid being subjected to the European Union's landmark Digital Markets Act (DMA), Azernews reports citing Bloomberg.

EU regulators are nearing the end of their investigation into X and are likely to conclude that the platform does not meet the criteria to fall under the DMA, sources familiar with the matter told Bloomberg. The decision is based on the platform's current market impact and revenue levels, which do not meet the thresholds set by the DMA.

The Digital Markets Act imposes stringent rules on major tech firms, including Alphabet Inc.'s Google Search, Apple Inc.'s Safari, Amazon.com Inc., and Meta Platforms Inc.'s Facebook. These rules are designed to prevent anti-competitive practices and include significant penalties for violations, up to 10% of global revenue, or 20% for repeated breaches.

The DMA targets companies with annual EU sales of at least 7.5 billion euros ($8.3 billion) or a market capitalization of 75 billion euros or more. Additionally, it applies to platform services with over 45 million monthly active end-users and more than 10,000 yearly active business users in the EU.

The European Commission is expected to release its findings on X's regulatory status in October.