Nintendo

Nintendo could be at risk of being considered a “gatekeeper” under the EU Digital law if their market share grows or if the law is widened, leading to them to be required to allow third party app stores



Europe’s new [Digital Markets Act](https://en.wikipedia.org/wiki/Digital_Markets_Act) law is making a lot of buzz lately for causing Apple to open up their store in the EU. This law designates certain large companies as “gatekeepers,” putting many restrictions on them, one being that app stores need to be opened up.

The current requirements to be labeled a gatekeeper are:

* Criteria relating to the size of the companies: (a) a turnover of the company of at least 7.5 billion euro in the European Economic Area for three years at least or (b) a market capitalization or equivalent of at least 75 billion euro;

* Criteria relating to the place of the company in controlling access of other businesses to final customers: the company needs to have (a) more than 45 million monthly active end users in the EU and (b) more than 10,000 yearly active business in the EU;

* “An entrenched durable position” which is a qualitative criterion which the regulator considers met if the numbers of active users in the second criterion are met for three years in a row.

Nintendo currently doesn’t meet these requirements yet, but they’re very close to it.

The current market cap of Nintendo in Europe is about €62 billion as far as I can see. Also they almost definitely have the userbase requirement for it.

If Nintendo’s next system is very successful or if the law is expanded to cover more businesses, they have a good chance of being forced to comply with the DMA in Europe from what I understand.

What do you think?

by razorbeamz

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