Withholding Threads is most likely a negotiation tactic in the broader context of how EU’s new Digital Markets Act “gatekeeper” rules are applied to Meta.

Threads is basically a new view into your Instagram account. That’s a common model in mobile apps (e.g. Meta’s existing FB and Messenger apps, or Microsoft’s Office and OneDrive apps suite, or thousands of others). There’s no inherent reason why “log in from a different app id” would suddenly be problematic under DMA.

By not releasing Threads, Meta signals that they want an agreement to be in place with the regulators about the details of EU DMA oversight before they’ll bring new products to the market. It’s a way to get consumer demand to apply pressure.