TikTok has followed in the footsteps of Meta by appealing against the “gatekeeper” status attributed to it under the Digital Markets Act (DMA), a European Union law aimed at imposing stricter regulations on tech companies and facilitating user mobility between competitive services. This move aligns with Meta’s recent challenge against the “gatekeeper” designations assigned to its Messenger and Marketplace platforms.
The European Union identified 22 “gatekeeper” services operated by six major tech companies, including Microsoft, Apple, Google, Amazon, Meta, and ByteDance’s TikTok. The DMA sets out stringent rules for companies meeting certain criteria, such as having over 45 million monthly active users and a market capitalization of 75 billion euros.
Meta, on Wednesday, contested the “gatekeeper” designations for its Messenger and Marketplace but chose not to appeal for Facebook, Instagram, and WhatsApp. TikTok, in its appeal, argues that its designation poses a risk to the DMA’s intended goal by shielding established gatekeepers from emerging competitors like TikTok. The video-sharing platform, operational in Europe for just over five years, asserts itself as a robust challenger to entrenched platform businesses.
TikTok claims that it does not meet the DMA’s revenue threshold of 7.5 billion euros per annum generated in the European Economic Area. The company emphasizes that it was designated a gatekeeper based on ByteDance’s global market capitalization, primarily influenced by business lines that do not operate in Europe.
TikTok, with over 134 million monthly users, contends that it is a challenger rather than an incumbent in the digital advertising landscape. The company questions the lack of a market investigation concerning its designation by the European Commission and stresses that it has not undergone the scrutiny typically associated with such determinations.
While Microsoft, Google, and Amazon refrained from challenging their gatekeeper designations, Apple is yet to comment on its plan. The deadline for appeals is November 16, making it a crucial period for tech companies to assert their positions under the DMA.
TikTok’s appeal, echoing Meta’s stance, adds another layer to the ongoing discourse surrounding tech regulation in the European Union. As major players navigate the complexities of the DMA and its gatekeeper designations, the outcomes of these appeals will significantly shape the regulatory landscape for digital platforms, influencing competition dynamics and user choices within the EU’s digital markets.
