EU Court Upholds TikTok's Parent Company as Gatekeeper Under Digital Markets Act
- The EU Court of Justice confirmed ByteDance as a gatekeeper under the Digital Markets Act.
- This designation was based on the European Commission's decision.
- ByteDance's arguments against the designation were dismissed.
On July 17, the EU Court of Justice affirmed the European Commission's classification of ByteDance, TikTok's parent company, as a gatekeeper under the Digital Markets Act (DMA). The ruling dismissed all arguments from ByteDance, which contended that it does not hold an entrenched position in the digital advertising market and does not meet the revenue threshold of €7.5 billion required for gatekeeper status in the European Economic Area. The General Court, part of the EU Court of Justice, supported the Commission's designation, citing ByteDance's potential to monetize its user base and its significant market presence. A spokesperson for TikTok expressed disappointment with the ruling, emphasizing the platform's role in fostering competition against established players like Meta and Alphabet. The spokesperson noted that TikTok is already taking steps to comply with DMA obligations ahead of the March deadline. ByteDance argued that it should be viewed as a challenger in the market, contrasting its position with that of more established companies that have quickly adopted similar features to TikTok. However, the court found that TikTok's rapid growth and substantial user base in the EU indicated a consolidated market position, countering ByteDance's claims. The court also deemed the Commission's standard of proof for justifying its decision as appropriate, reinforcing the regulatory framework's intent to ensure fair competition in the digital landscape.