EU court exempts Meta’s Marketplace from gatekeeper regulations, while retaining Messenger under those rules.

      The General Court invalidated the Commission's classification of Marketplace under the Digital Markets Act, criticizing its rationale, while affirming the same classification for Messenger. Meta approached the EU's General Court seeking to annul two gatekeeper classifications and ultimately succeeded in eliminating one. On June 3, the Luxembourg court nullified the European Commission’s designation of Facebook Marketplace as a “core platform service” under the Digital Markets Act, while maintaining the designation for Messenger. This was a divided outcome, and the reasons behind the split are more significant than the final tally.

      The court did not determine that Marketplace is insignificant or non-essential. Instead, it concluded that the Commission failed to adequately justify its decision. The judges stated that the decision “does not meet the reasoning requirements with respect to Marketplace,” as it did not account for recent developments in the service and left both Meta and the courts unclear about the rationale behind its classification as a regulated gateway. This annulment was based on procedural issues, not a finding that Marketplace is beyond the scope of the DMA.

      This distinction is crucial. The Digital Markets Act grants the Commission the authority to designate the largest platforms as “gatekeepers” and impose ongoing obligations on them, such as ensuring interoperability, limiting self-preferencing, and restricting user data aggregation, without needing to litigate each situation as a separate case of abuse.

      The speed and scope of this framework are key strengths, but they also expose vulnerabilities: when a regulator can classify a service as a gateway and impose significant requirements, the robustness of the reasoning behind that classification is what prevents the exercise of power from becoming arbitrary. The court has now indicated to the Commission that its rationale for Marketplace did not meet this standard.

      In the case of Messenger, however, the same level of scrutiny led to a different conclusion. Meta was unable to overturn the 2023 decision that placed the messaging service under stricter regulations, and the gatekeeper obligations for Messenger remain in effect.

      Meta received a comprehensive hearing regarding both services and a split decision, which could be seen as a more beneficial outcome for the law than a decisive victory for either party, as it indicates the court’s readiness to oversee the Commission’s reasoning without dismantling the regulatory framework.

      The practical implications for Marketplace are limited and likely temporary. An annulment due to insufficient reasoning is a type of setback that a regulator can remedy: the Commission can issue a new designation with the analysis that the court found lacking, this time addressing the developments it did not consider. Meta has essentially gained time and a procedural win rather than a lasting exemption, and the company is aware of this.

      What the ruling accomplishes is clarifying the parameters of the DMA dispute rather than resolving it. Meta and Apple have both launched legal challenges regarding their statuses under the act, and the broader confrontation between Brussels and major American platforms has revolved more around the application of the rules and the evidence supporting their enforcement.

      Wednesday’s ruling is directly relevant to this discussion: it preserves the architecture of the DMA while requiring the Commission to better substantiate its reasoning. For those monitoring the act’s sustainability, this is a key takeaway. The General Court has not weakened the gatekeeper regime; instead, it has insisted that the regulator utilize it with improved documentation of its reasoning. Brussels tends to establish rules first and refine enforcement later, and this represents that refinement in action. The Commission retains its powers but must now exercise them more judiciously, and Marketplace illustrates this point.