Meta challenges part of the EU DMA law and wins some victory: Marketplace gatekeepers identified overturned, Messenger still constrained.

The second highest court of the European Union ruled on Wednesday, partially supporting Meta Platforms (META.US) in overturning the European Commission's decision to classify its trading platform Marketplace as a "gatekeeper," but at the same time rejecting its appeal against the similar classification of the instant messaging app Messenger. The EU General Court in Luxembourg pointed out in its judgment that the European Commission's decision to classify Marketplace as a core online intermediary platform service did not meet the relevant requirements, making it impossible for Meta to understand the reasons for the classification and for the EU court to exercise its review powers. The court believed that the regulatory agency relied on partial evidence in the classification process and used a "hypothetical and incomplete" analysis. This lawsuit stems from the European Commission classifying both Marketplace and Messenger as important channels for companies to reach users under the Digital Markets Act (DMA). The law, which will come into effect in 2023, sets out a series of conduct rules and prohibitions for big tech platforms to limit their power and create a fair environment for competitors. In recent months, this law has also drawn criticism from former U.S. President Trump, casting a shadow over EU-U.S. trade negotiations. This ruling means that Meta is not required to fulfill "gatekeeper" obligations for Marketplace, but still must comply with DMA regulations for Messenger. Meta had previously faced regulatory pressure over Marketplace, with the business being fined 798 million (approximately $927 million) in 2024 for breaching EU antitrust rules. In terms of DMA enforcement, Apple Inc. (AAPL.US) and Meta are the first companies to face fines for suspected violations, being fined 500 million and 200 million respectively.