EU court upholds Messenger gatekeeper, drops Marketplace

A European Union court upheld the designation of Meta's Messenger service as a "gatekeeper" under the bloc's Digital Markets Act on Wednesday, while annulling the same label for the company's Marketplace platform. The ruling by the General Court, the EU's second-highest court, represents a mixed outcome for the tech giant as it navigates the landmark regulatory regime.

The court found that the European Commission, the EU's executive body, was correct in its 2023 decision that Messenger serves as an important gateway for businesses to reach consumers. Judges noted that Messenger operates through standalone applications and carries tools specific to the service, distinguishing it from the broader Facebook social network. This designation subjects Messenger to strict obligations under the DMA, including requirements for greater interoperability with rival messaging services.

Conversely, the court annulled the gatekeeper designation for Meta's Marketplace service. Judges ruled that the Commission had failed to adequately justify its reasoning for labeling Marketplace, leaving neither Meta nor the court able to understand the basis for the classification. The court stated the...