Threads will arrive in Europe, it’s just ‘a matter of time’: expert

The Threads social network, launched on Wednesday by Meta to compete with Twitter, is not available in the European Union where it is awaiting regulatory clarifications, but its arrival is just “a matter of time”, estimates Alexandre de Streel, academic director of the Center on Regulation in Europe (CERRE).

To conquer more than 30 million registrations in 24 hours in a hundred countries, the American group relied on the data of the two billion active users of its Instagram service.

This practice seems prohibited by the digital market regulations (DMA), new European legislation which will apply to digital giants from March 2024, this digital law expert told AFP.

Question: Does the new European legislation (DMA) prevent Threads from launching in Europe?

Answer: There are provisions in the DMA that prohibit using your strength in one market, here on Instagram, to go to another market. However, it is the use of Instagram’s customer base that has allowed Threads to grow so quickly. Instagram boss Adam Mosseri himself explained that the intention is to launch Threads in Europe in the future.

I think it is a matter of time to understand the scope of the legislation and have a dialogue with the Commission. The text is new and therefore there are still quite a few questions of interpretation.

Is the DMA there to create competition wherever it comes from, including from the major social media players, or is it just to create competition? with new entrants, ideally Europeans? My feeling is that the DMA is rather there to create competition wherever it comes from. It would be a shame if the regulation had the result of curbing competition between the large groups. The more competition you have, the more consumer friendly you have.

Q.: Could Threads do without the European market?

A: Threads’ business model is no different than Twitter’s. This is to monetize the traffic on its network through advertising. However, it is on the North American and European markets that they make the highest margins on advertising. Threads has an interest in coming to Europe and it is very clear that they want to do so.

What happens is that at the same time we have the launch of a new service and that of new legislation, the outline of which is not completely precise. If the Threads launch had been scheduled in a year, with a clearer view of the legislation, perhaps it would have happened at the same time in the United States and Europe.

Q.: If the interpretation of EU law is not the one Meta managers want, what are their options?

A: The least favorable solution for them would be not to launch Threads at all in Europe, but I think they will get there one way or another.

If the DMA’s interpretation is that it’s not possible to use the Instagram client base to launch Threads, they could launch it without using Instagram. Once the service is released in the United States and a hundred countries, they can hope that there will be enough network effect to entice European consumers without the need for leverage. from Instagram.

But maybe they will find an interpretation of the DMA that will be accepted by the Commission and that will allow them to go through Instagram a little to roll out their new service.

© 2023 AFP

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