Opera's attempt to have Microsoft Edge designated as a gatekeeper has been rejected by the EU court.

Opera's attempt to have Microsoft Edge designated as a gatekeeper has been rejected by the EU court.

      Microsoft Edge will remain exempt from the European Union’s strictest technology regulations. On Wednesday, the bloc’s General Court dismissed Opera’s challenge to the European Commission’s determination not to classify the browser as a gatekeeper service under the Digital Markets Act (DMA).

      The Luxembourg-based court stated that the Commission "did not err by accepting Microsoft’s adequately supported arguments showing that Edge did not function as a significant gateway" between businesses and consumers, as reported by Reuters. The ruling in Case T-357/24, Opera Norway v Commission, maintains the existing exemption.

      Opera contested a Commission decision from February 2024, which followed a market inquiry into Microsoft. Although Edge met the DMA’s numerical threshold for user base, Brussels accepted Microsoft’s claim that the browser was not a crucial gateway for accessing European users, leading to the closure of the investigation.

      While Microsoft is designated as a gatekeeper in the EU, this does not apply to Edge. Services like Windows and LinkedIn are recognized as core platform services under the DMA, and the same February 2024 inquiry concluded that Bing and Microsoft Advertising also did not qualify.

      The Norwegian browser company sought annulment in July 2024, arguing that the Commission misapplied the designation criteria and failed to adequately address what it considered the critical issue: Edge holding a “durable and privileged position on Windows” that the Commission did not thoroughly evaluate.

      Opera emphasized a specific aspect of how Windows operates, telling the court that “Edge, much like Internet Explorer before it, serves as the obligatory gateway through which Windows users must pass to download” other browsers, thereby designating the pre-installed browser as a choke point, irrespective of how many users continue to use it thereafter.

      The broader objective was to subject desktop operating systems more comprehensively to the DMA. Most remedies within the regulation for browsers, including the choice screens that transformed the mobile landscape, have primarily focused on smartphones, and Opera aimed for similar measures to be applied to Windows.

      The court rejected this claim, concluding simply: “The General Court confirms the Commission’s decision not to classify Microsoft as a gatekeeper in relation to Edge.”

      Designation brings a service under the obligations of the DMA. A designated service is prohibited from self-preferencing and must allow functionalities such as uninstallation and third-party defaults, with severe violations potentially incurring fines of up to 10% of global revenue. This is why Apple and Microsoft resisted having iMessage and Bing included during the same investigative period.

      Typically, the Commission has found support in these challenges. Apple lost its own General Court appeal regarding its designation, while the ruling on Edge now indicates the court can also support the regulator in its decisions against designating a service.

      For Opera, the ruling holds historical significance. Its 2007 complaint over browser bundling on Windows ultimately contributed to the EU’s introduction of the browser ballot screen and, in 2013, a €561 million fine against Microsoft for discreetly discontinuing the ballot.

      Nineteen years later, the same company has failed to extend a more recent EU regulation to the same product. The regulatory environment has evolved, along with the outcome.

      The ruling also arrives at a challenging time for Brussels. A European browser maker attempted to persuade EU judges to broaden the bloc’s regulations against an American tech firm but was unsuccessful, while the Commission faces ongoing pressure from Washington regarding its broader application of the DMA.

      The broader enforcement efforts are ongoing. The Commission is currently evaluating whether AWS and Azure should be designated as cloud gatekeepers and has already imposed its first DMA penalty, an €890 million fine against Google.

      What Wednesday’s ruling settles is narrower than initially implied. Meeting the DMA’s quantitative benchmarks does not automatically necessitate that the Commission designates a service, and a competitor contesting this judgment will face significant challenges in overturning it in court.

      Opera has not publicly disclosed whether it plans to appeal to the Court of Justice, and the available coverage of the judgment does not elaborate on its options. Appeals on legal grounds can be filed within two months and ten days following notification.

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Opera's attempt to have Microsoft Edge designated as a gatekeeper has been rejected by the EU court.

Opera, Microsoft Edge, Digital Markets Act (DMA), gatekeeper, European Commission, General Court, T-357/24, EU technology regulation, competition in browsers.