• European Commission’s Digital Markets Act (DMA) designates Microsoft as a gatekeeper, subjecting it to increased scrutiny and obligations for fair competition.
  • Preliminary decisions suggest exemptions for Microsoft’s Bing, Edge, and advertising services from stringent EU antitrust regulations.
  • Despite concerns about Bing’s market share, Microsoft’s proactive compliance with DMA includes measures to enhance user choice and interoperability.

Microsoft’s Bing search engine, Edge browser, and advertising services are poised to receive exemptions from the stringent antitrust regulations of the European Union (EU), which is the Digital Markets Act (DMA).

Microsoft enters EU regulatory spotlight

Last September, Microsoft found itself among the tech behemoths designated as gatekeepers by the European Commission under the Digital Markets Act (DMA). Enacted in November 2022, the DMA aims to cultivate fair competition in digital markets, ensuring increased choices for consumers. The prominent services of Microsoft, including Windows, Bing, and Edge, drew the scrutiny of the European watchdog, resulting in the company’s inclusion in the gatekeepers list. During this period, Microsoft contended that Bing did not meet the prescribed thresholds to be classified as a gatekeeper, distinguishing itself from its rival, Google Search.

Microsoft’s Bing, Edge receive exemptions

In a preliminary decision stemming from a five-month market investigation set to conclude in February, Microsoft’s Bing search engine, Edge browser, and advertising services are poised to receive exemptions from the stringent antitrust regulations of the European Union (EU). According to anonymous insiders, EU Commission officials lean towards extending this concession to Microsoft, asserting their market position doesn’t warrant regulatory measures. Furthermore, Apple’s iMessage service is notably excluded from the upcoming Digital Markets Act, effective March. Despite these exemptions, Microsoft, Apple, and Meta Platforms Inc. will be subject to new obligations aimed at preventing the abuse of dominant positions in various business sectors. Microsoft’s obligations encompass its Windows PC operating systems and LinkedIn, while Apple faces scrutiny over iOS, App Store, and Safari browser. The Digital Markets Act, targeting six global tech giants as digital ‘gatekeepers,’ explicitly prohibits service favouritism, mandates data separation, and encourages app downloads from competitors’ platforms.

Certainly, despite the introduction of Microsoft Copilot (formerly Bing Chat), reports indicate a stagnant market share for Bing, even though it played a significant role in achieving 100 million daily active users. Microsoft expressed concerns that forcing access to rival search engines could negatively impact Bing’s value.

Also read: Microsoft tops Apple in market value with AI focus

Google and Microsoft’s compliance

Companies listed as gatekeepers were granted six months to adhere to the Digital Markets Act (DMA), with potential hefty fines for non-compliance. The DMA mandates interoperability among gatekeepers’ services. Recently, Google outlined measures to comply with the DMA, allowing users to choose Bing and Edge as their default search engine and browser. This move may enable Microsoft to compete more evenly for search market share. Microsoft has proactively implemented measures in line with the DMA, such as enabling users in the European Economic Area to uninstall Microsoft Edge, disable Bing in Windows Search, and deactivate the Microsoft News feed and ads in the Widgets Board on Windows 11.

Also read: Is Bing’s new GPT-4 powered deep search a game changer or just hype? Here are the pros and cons