EU court rejects TikTok's efforts to bypass DMA rules
The EU's General Court has ruled that ByteDance, the parent company of TikTok, must adhere to the bloc's new law known as the Digital Markets Act (DMA). The court has dismissed ByteDance's legal challenge against being classified as an online "gatekeeper" under the DMA. The company had argued it was a new competitor in social media, challenging established players like Meta, owner of Facebook and Instagram.
Court recognizes TikTok's rapid growth and market influence
The judges acknowledged that TikTok has "succeeded in increasing its number of users very rapidly and exponentially" since 2018. They noted the platform's swift consolidation and strengthening of its position over the years. This recognition played a significant role in the court's decision to classify ByteDance under the DMA, despite the company's argument that it is a challenger rather than a gatekeeper in the digital market.
ByteDance expresses disappointment, evaluates next steps
In response to the ruling, ByteDance expressed disappointment, stating that "TikTok is a challenger platform that provides important competition to incumbent players." Despite this setback, the firm announced it will evaluate its next steps. It also highlighted that it has already taken measures to comply with the DMA, indicating its willingness to adhere to new regulations despite contesting its classification under the act.
DMA aims to regulate Big Tech
The DMA was enacted this year with the goal of countering the dominance of Big Tech firms and promoting fairer online competition. The act provides a list of dos and don'ts for big tech "gatekeeper" companies, threatening significant penalties for non-compliance. The ruling can be appealed to the EU's Court of Justice, which is the bloc's highest court, but only on points of law.
