On Wednesday, a European Union court ruled that TikTok owner ByteDance falls under the bloc’s new Digital Markets Act (DMA), grouping it with tech giants such as Apple, Google, and Microsoft. The EU’s General Court dismissed ByteDance’s legal challenge against being classified as an online “gatekeeper,” which subjects it to additional regulations under the DMA.
The Digital Markets Act, which came into force this year, aims to curb the dominance of large tech firms and promote fairer competition by enhancing consumer choice. TikTok contended that it shouldn’t be labeled a gatekeeper, arguing that it is a new competitor in the social media landscape, challenging established players like Facebook and Instagram owner Meta.
The court, however, noted TikTok’s rapid and exponential growth since 2018, which has solidified and even strengthened its market position over the years. “We are disappointed with this decision,” ByteDance stated. “TikTok is a challenger platform that provides important competition to incumbent players.” The company added that it will review its options and highlighted its ongoing efforts to comply with the DMA.
The DMA, effective since March, sets out specific rules for major tech “gatekeepers” to ensure more consumer choices and imposes substantial penalties for non-compliance. ByteDance retains the option to appeal the decision to the EU’s Court of Justice, but only on legal grounds.
