ByteDance Loses Court Challenge Against EU Gatekeeper Designation

ByteDance, the owner of TikTok, lost its court battle against being labeled a gatekeeper under the EU's Digital Markets Act. The General Court in Luxembourg ruled that ByteDance's arguments were insufficient and acknowledged TikTok's rapid growth, comparing it to competitors like Meta and Alphabet.

ByteDance, the owner of TikTok, encountered a legal setback on Wednesday, as it lost its court challenge against being designated as a gatekeeper under the European Union's landmark tech regulations.

According to the Digital Markets Act (DMA), gatekeepers must ensure their messaging apps can work with those of their competitors, let users decide which apps to pre-install, and refrain from prioritizing their own services over others. ByteDance contended that being labeled a gatekeeper could undermine the DMA's goal by protecting the dominant players from emerging competitors like TikTok, which lacks an established position.

However, the Luxembourg-based General Court sided with the European Commission, dismissing ByteDance's challenge and stating that the company did not sufficiently back its claims. The judges remarked that ByteDance met DMA's thresholds in terms of global market value and TikTok's user numbers within the EU. The Court also highlighted TikTok's swift rise in popularity, equating it to established rivals like Meta Platforms and Alphabet.

(With inputs from agencies.)