The Facebook founder launched Threads as a direct competitor to Elon Musk’s Twitter, but that’s not the only fight he has on his hands

 
Mark Zuckerberg, the US tech titan, has entered a high-stakes battle with the European Union (EU) by withholding his new Threads app from users in Europe. However, analysts believe he will face difficulties in winning this fight.

Threads, positioned as a competitor to Twitter, has gained over 100 million users within its first week on app stores.

Zuckerberg’s company, Meta, cited “regulatory uncertainty” surrounding the Digital Markets Act (DMA), an upcoming antitrust regulation, as the reason for not releasing Threads in Europe.

The DMA is set to take effect next year.

Diego Naranjo, head of policy at European Digital Rights, predicts that Meta will make Threads available to the rest of the world, leading Europeans to express frustration at being excluded and potentially pressuring the EU to soften the DMA.

“The reason they gave made me laugh,” said Naranjo. “The regulation is not uncertain, it’s very certain, it’s just that Meta doesn’t like it.”

Naranjo, however, believes this tactic will likely fail. Nevertheless, the outcome of this clash between Zuckerberg and the EU will be closely watched by other major tech platforms, as it could shape the regulatory landscape for all of them in Europe.

Tech companies like Meta frequently face regulatory challenges from EU authorities regarding their data collection and retention practices.

Compliance with the General Data Protection Regulation (GDPR), a comprehensive data privacy regulation in Europe, has been a struggle for these firms.

When the DMA was announced, tech companies responded with caution, as it primarily focused on business and competition matters, which seemed simpler compared to other potential regulatory issues.

The DMA prohibits large tech firms from favouring their own platforms, which poses a particular challenge for Meta’s Threads since it is connected to Instagram accounts.

However, Article 5.2 of the DMA introduced a significant provision: companies will be barred from transferring user data across platforms without obtaining consent. This requirement could have far-reaching implications for the operations of major tech companies.

The ongoing battle between Meta and the EU over Threads and the DMA underscores the tension between tech giants and regulatory authorities regarding competition, data privacy, and platform dominance.

The resolution of this conflict will have significant implications for the future regulatory environment in Europe and its impact on the tech industry as a whole.

AFP