ByteDance challenges its designation under EU Digital Markets Act, arguing it fails to meet all three gatekeeper criteria.
TikTok has appealed its designation as a gatekeeper under the EU Digital Markets Act (DMA) at the EU Court of Justice, marking the first challenge of its kind. The company argues it does not meet all three criteria for the status, which imposes stricter regulations on Big Tech firms with over 45 million monthly users in Europe.
The DMA, enacted in September 2023, targets companies like Alphabet, Meta, Apple, and Amazon, with fines up to 10% of annual turnover for non-compliance. A lower court previously upheld TikTok’s designation, but the company contends its market impact and competitive dynamics differ from other tech giants.
The ruling could set a precedent for how the EU enforces DMA rules, potentially reshaping regulatory oversight of major digital platforms. No immediate market reaction was reported.