The court dismissed ByteDance’s argument that its global market value stemmed mainly from its activity in China, unrelated to the EU market. The €75 billion ($82 billion) market value requirement under the DMA does not distinguish geographical origins.
TikTok’s Market Position and Competitors
ByteDance contended that TikTok’s scale was smaller than other social networks like Facebook and Instagram, making it less of a gateway. However, the General Court highlighted TikTok’s rapid and significant growth in the EU, noting it reached nearly half the size of Facebook and Instagram since its international launch in 2017.
ByteDance also argued that competitors Meta and Alphabet successfully challenged TikTok with their video services, Reels and Shorts, indicating ByteDance was more of a challenger than a gatekeeper. The General Court countered that being a challenger and a gatekeeper are not mutually exclusive, stating TikTok’s exponential growth and revenue far exceeded the DMA’s thresholds.
TikTok Loses 1st Challenge Against EU Big Tech Law : Court’s Judgment and Next Steps
The General Court acknowledged the commission’s error in deeming ByteDance’s EU turnover from the past three years irrelevant, but this did not affect the commission’s overall conclusion. A TikTok spokesperson expressed disappointment with the decision and said the company would evaluate its next steps, noting that it has already taken measures to comply with the DMA.
