The European Commission on Monday, announced that it has classified hotel reservation website Booking.com as a “gatekeeper,” subjecting it to strict European Union regulations.
Additionally, an investigation has been launched to determine the regulatory status of social media network X.
Online advertising services X Ads and TikTok Ads were not considered gatekeepers under the EU Digital Markets Act (DMA), the EU stated.
In March, the Commission had identified Elon Musk’s X, TikTok owner ByteDance, and Booking.com as potential gatekeepers subject to tough tech rules. While Booking.com has been classified as a gatekeeper in line with its own assessment, a market investigation has been initiated to assess X’s challenge to its gatekeeper status.
ByteDance was designated as a gatekeeper in July of the previous year, but TikTok has contested this decision at Europe’s second-highest court.
The Digital Markets Act aims to regulate the dominance of tech giants by imposing stricter obligations related to content moderation, fair competition, and consumer choice.
It defines gatekeepers as companies with over 45 million monthly active users and a market capitalization exceeding 75 billion euros ($81 billion), providing core platform services for business users.
Booking.com now has six months to submit a detailed compliance report following its designation as a gatekeeper. Some DMA rules are immediately applicable, including the obligation to notify the Commission of any planned concentration in the digital sector.
Non-compliance with the DMA could result in fines of up to 10% of the company’s global turnover, rising to 20% for repeated violations. Additionally, restrictions on takeover activities may be imposed.
Last year, Alphabet, Amazon, Apple, Meta, and Microsoft were also classified as gatekeepers. Starting from March 7, they are required to make their messaging apps interoperable with competitors and allow users to choose which apps to pre-install on their devices. They are also prohibited from favoring their own services or preventing users from uninstalling pre-installed software or apps.
