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Apple's IMessage Escapes DMA Regulation

(RTTNews) - The European Union's Digital Markets Act or DMA has determined that Apple Inc.'s (AAPL) iMessage, along with other products such as Microsoft's Bing, Edge, and Microsoft Advertising, do not hold dominant market positions, and thus won't be subjected to stricter regulations.

The DMA had been investigating whether iMessage should be classified as a "core platform service" and forced to interoperate with other messaging rivals, including WhatsApp. However, the EU's executive arm has concluded that iMessage does not meet the criteria for such regulation.

If iMessage were to be designated as a gatekeeper service under the DMA regulations, Apple would have to ensure compatibility with other messaging services. However, the EU has instead decided to continue monitoring market developments related to these services for any significant changes.

Apple's iMessage system will continue to operate as a closed system, but with the additional compatibility of RCS messaging standard, which will allow Androids and iPhones to share emoji reactions and message receipts. Apple has committed to supporting the RCS messaging standard from this year onwards, which will enhance the security and features of messaging between iMessage and Android. However, it's worth noting that RCS texts will still appear in green bubbles, distinguishing them from iMessage's blue bubbles.

It's important to note that while iMessage may not be subjected to stricter regulations, some of Apple's other products including iOS, the App Store, and Safari are subject to the DMA's regulations. Meanwhile, the EU has classified Meta's Messenger and WhatsApp as gatekeeper services, requiring them to cooperate with other messaging apps. Apple, on the other hand, faces additional allegations of being a gatekeeper with its other core services, such as iOS, the App Store, and Safari.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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