TikTok lost its bid to escape European Union digital market rules on Wednesday when the bloc’s General Court found the social media platform’s global market value indicates significant potential to profit from European users.
TikTok’s EU User Base and Gatekeeper Status
In 2022, TikTok had 125 million users in the EU, surpassing the threshold for its parent company, ByteDance Ltd., to be labeled a “gatekeeper” alongside Alphabet, Amazon, Apple, Meta, and Microsoft. The Digital Markets Act (DMA) mandates that gatekeepers must comply with regulations designed to curb the power of big tech. The General Court upheld the European Commission’s decision to grant ByteDance this label, stating the company’s value and user base reflect its financial capacity and potential to monetize TikTok users in the EU, impacting the internal market.
TikTok Loses 1st Challenge Against EU Big Tech Law : Digital Markets Act Compliance
Finalized in 2022, the DMA requires services considered crucial gateways for businesses to reach end users to follow rules intended to prevent unfair advantages. Gatekeepers under the DMA must offer users more choices, ensure platforms do not favor their own services, and maintain transparency for business users.
