Article 3 Designation of gatekeepers
1 A provider of core platform services 1. An undertaking shall be designated as gatekeeper if: (a) it has a significant impact on the internal market; (b) it operates a core platform service which serves as an important gateway for business users and end users to reach other end users; and (c) it enjoys an entrenched and durable position in its operations or it is foreseeable that it will enjoy such a position in the near future. 2 A provider of core platform services 2. An undertaking shall be presumed to satisfy: (a) the requirement in paragraph 1 point (a) where the undertaking to which it belongs achieves an annual EEA turnover equal to or above EUR 6.5 8 billion in the last three financial years, or where the average market capitalisation or the equivalent fair market value of the undertaking to which it belongs amounted to at least EUR 65 80 billion in the last financial year, and it provides a core platform service in at least three Member States; (b) the requirement in paragraph 1 point (b) where it provides a one or more core platform service that services each of which has more than 45 million monthly active end users established or located in the Union EEA and more than 10 000 yearly active business users established in the Union EEA in the last financial year; year. deleted (c) the requirement in paragraph 1 point (c) where the thresholds in point (b) were met in each of the last three two financial years. 3 Where For the purpose of point (b), (i) monthly end users and yearly business users shall be measured taking into account the indicators set out in the Annex to this Regulation; and (ii) monthly end users shall refer to the average number of monthly end users during a provider period of at least six months within the last financial year; 3. Where an undertaking providing core platform services meets all the thresholds in paragraph 2, it shall notify the Commission thereof without delay and in any case within three two months after those thresholds are satisfied and provide it with the relevant information identified in paragraph 2.. 2. That notification shall include the relevant information identified in paragraph 2 for each of the core platform services of the provider undertaking that meets the thresholds in paragraph 2 point (b). The notification shall be updated whenever other core platform services individually meet the thresholds in paragraph 2 point (b). A failure by a relevant provider of undertaking providing core platform services service to notify the required information pursuant to this paragraph shall not prevent the Commission from designating these providers undertakings as gatekeepers pursuant to paragraph 4 at any time. 4 The Commission shall, without undue delay and at the latest 60 days after receiving the complete information referred to in paragraph 3, designate the provider of undertaking providing core platform services that meets all the thresholds of paragraph 2 as a gatekeeper, unless that provider, gatekeeper . The undertaking may present , with its notification, presents sufficiently substantiated compelling arguments to demonstrate that, in the circumstances in which the relevant core platform service operates, and taking into account the elements listed in paragraph 6, the provider undertaking does not satisfy the requirements of paragraph 1. deleted 4a. Where the gatekeeper presents such sufficiently substantiated arguments undertaking providing the core platform service fails to demonstrate that it does not satisfy notify the requirements of Commission, to provide the information required in paragraph 1, 3 or to provide within the deadline set by the Commission shall apply paragraph 6 all the relevant information that is required to assess whether its designation as gatekeeper pursuant to paragraphs (2) and (6), the criteria in Commission shall be entitled to designate that undertaking as a gatekeeper at any time based on information available to the Commission pursuant to paragraph 1 are met. 5 4. 5. The Commission is empowered to adopt delegated acts in accordance with Article 37 to specify the methodology for determining whether the quantitative thresholds laid down in paragraph 2 of this Article are met, and to regularly adjust it the methodology to market and technological developments where necessary, necessary . The Commission is empowered to adopt delegated acts in particular as regards accordance with Article 37 to update the threshold list of indicators set out in paragraph 2, point (a). 6 the Annex to this Regulation . The Commission may shall identify as a gatekeeper, in accordance with the procedure laid down in Article 15, any provider of undertaking providing core platform services , excluding Medium-sized, Small or Micro enterprises as defined in the Commission Recommendation 2003/361/EC, that meets each of the requirements of paragraph 1, 1 of this Article , but does not satisfy each of the thresholds of paragraph 2, or has presented sufficiently substantiated arguments in accordance with paragraph 4. For that purpose, the Commission shall take into account the following elements: 2 of this Article . (a) the size, including turnover and market capitalisation, operations and position of the provider of undertaking providing core platform services; (b) the number of business users depending on the core platform service to reach end users and the number of end users; (c) entry barriers derived from network effects and data driven advantages, in particular in relation to the provider’s undertaking’s access to and collection of personal and non-personal data or analytics capabilities; (d) scale and scope effects the provider undertaking benefits from, including with regard to data; (e) business user (ea) the degree of multi-homing among business; (eb) the ability of the undertaking to implement conglomerate strategies, in particular through its vertical integration or end user lock-in; (f) other structural market characteristics. its significant leverage in related markets; In conducting its assessment, the Commission shall take into account foreseeable developments of these elements. Where the provider of a core platform service that satisfies the quantitative thresholds of paragraph 2 fails to comply with the investigative measures ordered by the Commission in a significant manner and the failure persists after the provider has been invited to comply within a reasonable time-limit and to submit observations, the Commission shall be entitled to designate that provider as a gatekeeper. Where the elements including any planned concentrations involving another provider of a core platform service that does not satisfy the quantitative thresholds services or of paragraph 2 fails to comply with the investigative measures ordered by the Commission any other services provided in a significant manner and the failure persists after the provider has been invited to comply within a reasonable time-limit and to submit observations, the Commission shall be entitled to designate that provider as a gatekeeper based on facts available. 7 digital sector . deleted deleted 7. For each undertaking designated as gatekeeper identified pursuant to paragraph 4 or paragraph 6, the Commission shall identify within the relevant undertaking to which it belongs and list deadline set under paragraph 4 the relevant core platform services that are provided within that same undertaking and which individually serve as an important gateway for business users to reach end users as referred to in paragraph 1(b). 8 8. The gatekeeper shall comply with the obligations laid down in Articles 5 and 6 within six as soon as possible, and in any case no later than four months after a core platform service has been included in the list pursuant to paragraph 7 of this Article. a. ‘General’ 1. The present annex aims at specifying the methodology for identifying and calculating the ‘end users’ and the ‘business users’ for each core platform service defined in Article 2(2) for the purpose of point (b) of Article 3(2). It provides a reference to enable an undertaking to assess whether its core platforms services meet the quantitative thresholds set out in Article 3(2)(b) and would therefore be presumed to meet the requirement in Article 3(1)(b). It will therefore equally be of relevance to any broader assessment under Article 3(6). It is the responsibility of the undertaking to come to the best approximation possible in line with the common principles and specific methodology set out in this annex. Nothing in this annex precludes the Commission from requiring the undertaking providing core platform services to provide any information necessary to identify and calculate the ‘end users’ and the ‘business users’. In doing so, the Commission is bound by the timelines laid down in the relevant provisions of this Regulation. Nothing in the present annex should constitute a legal basis for tracking users. The methodology contained in this annex is also without prejudice to any of the obligations in the Regulation, notably including those laid down in Article 3(3), Article 3(6) and Article 11(1). In particular, the required compliance with Article 11(1) also means identifying and calculating end users and business users based either on a precise measurement or on the best approximation available — in line with the actual identification and calculation capacities that the undertaking providing core platform services possesses at the relevant point in time. These measurements or the best approximation available shall be consistent with, and include, those reported under Article 13. 2. Article 2(16) and (17) set out the definitions of ‘end user’ and ‘business user’, which are common to all core platform services. 3. In order to identify and calculate the number of ‘end users’ and ‘business users’, the present annex refers to the concept of ‘unique users’. The concept of ‘unique users’ encompasses ‘end users’ and ‘business users’ counted only once, for the relevant core platform service, over the course of a specified time period (i.e. month in case of ‘end users’ and year in case of ‘business users’), no matter how many times they engaged with the relevant core platform service over that period. This is without prejudice to the fact that the same natural or legal person can simultaneously constitute an end user or business user for different core platform services. b. ‘end users’ 4. Number of ‘unique users’ as regards ‘end users’: unique users shall be identified according to the most accurate metric reported by the undertaking providing any of the core platform services, specifically: a. It is considered that collecting data about the use of core platform services from signed-in or logged-in environments would prima facie present the lowest risk of duplication, for example in relation to user behaviour across devices or platforms. Hence, the undertaking shall submit aggregate anonymized data on the number of unique users per respective core platform service based on signed-in or logged-in environments if such data exists. b. In the case of core platform services which are (also) accessed by end users outside signed-in or logged-in environments, the undertaking shall additionally submit aggregate anonymized data on the number of unique end users of the respective core platform service based on an alternate metric capturing also end users outside signed-in or logged-in environments such as internet protocol addresses, cookie identifiers or other identifiers such as radio frequency identification tags provided that those addresses or identifiers are (objectively) necessary for the provision of the core platform services. 5. Article 3(2) also requires that the number of ‘monthly end users’ is based on the average number of monthly end users during a period of at least six months within the last financial year. An undertaking providing core platform service(s) can discount outlier figures in a given year. Outlier figures inherently mean figures that fall outside the normal values such as a sales peak that occurred during a single month in a given year but do not include the annual regular and predictable sales. c. ‘business users’ 6. Number of ‘unique users’ as regards ‘business users’, ‘unique users’ are to be determined, where applicable, at the account level with each distinct business account associated with the use of a core platform service provided by the undertaking constituting one unique business user of that respective core platform service. If the notion of ‘business account’ does not apply to a given core platform service, the relevant undertaking providing core platform services shall determine the number of unique business users by referring to the relevant undertaking. d. ‘Submission of information’ 7. The undertaking submitting information concerning the number of end users and business users per core platform service shall be responsible for ensuring the completeness and accuracy of that information. In that regard: a. The undertaking shall be responsible for submitting data for a respective core platform service that avoids under-counting and over-counting the number of end users and business users (for example where users access the core platform services across different platforms or devices) in the information provided to the Commission. b. The undertaking shall be responsible for providing precise and succinct explanations about the methodology used to arrive at the information provided to the Commission and of any risk of under-counting or over-counting of the number of end users and business users for a respective core platform service and of the solutions adopted to address that risk. c. The undertaking shall provide the Commission data that is based on an alternative metric when the Commission has concerns about the accuracy of data provided by the undertaking providing core platform service(s). 8. For the purpose of calculating the number of ‘end users’ and ‘business users’: a. The undertaking providing core platform service(s) shall not identify core platform services that belong to the same category of core platform services pursuant to Article 2(2) as distinct mainly on the basis that they are provided using different domain names — whether country code top-level domains (ccTLDs) or generic top-level domains (gTLDs) — or any geographic attributes. b. The undertaking providing core platform service(s) shall consider as distinct core platform services those core platform services, which despite belonging to the same category of core platform services pursuant to Article 2(2) are used for different purposes by either their end users or their business users, or both, even if their end users and business users may be the same. c. The undertaking providing core platform service(s) shall consider as distinct core platform services those services which the relevant undertaking offers in an integrated way but which (i) do not belong to the same category of core platform services pursuant to Article 2(2) or (ii) despite belonging to the same category of core platform services pursuant to Article 2(2), are used for different purposes by either their end users or their business users, or both, even if their end users and business users may be the same. e. ‘Specific definitions’ 9. Specific definitions per core platform service: The below list sets out specific definitions of ‘end users’ and ‘business users’ for each core platform service.