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)