ByteDance argues TikTok is not a “gatekeeper” in EU case

TikTok has challenged its designation as a “gatekeeper” under European Union tech regulations in a case now being heard at the EU’s top court in Luxembourg.

The legal appeal, filed by parent company ByteDance, seeks to overturn its classification under the EU’s Digital Markets Act (DMA), which imposes stricter obligations on major online platforms to ensure fair competition, News.Az reports, citing Reuters.

Under the DMA, companies designated as gatekeepers must comply with rules aimed at limiting market dominance, increasing interoperability, and giving users more choice. Non-compliance can result in fines of up to 10% of global annual turnover.

TikTok was designated a gatekeeper in 2023 due to its large user base in Europe, alongside major tech firms such as Google, Meta Platforms, Apple, Amazon, Microsoft and Booking.com.

In court, TikTok argued it does not meet the criteria for entrenched market power in Europe, saying its user engagement is not locked in and that most users “multihome” across several platforms such as Instagram, Facebook and X.

The company also claimed its business is largely driven by markets outside Europe and operates in a different cultural and regulatory environment.

European Commission lawyers rejected these arguments, saying that partial use of multiple platforms does not eliminate concerns about user dependency and market influence.

A lower EU tribunal had already dismissed TikTok’s challenge in 2024, ruling that it meets the requirements for gatekeeper status under the DMA.

The case is now before the EU Court of Justice, which is expected to issue a ruling in the coming months. The decision could have significant implications for how Europe regulates major tech platforms and enforces competition rules across the digital economy.

News.Az 

By Aysel Mammadzada