TikTok Challenges Gatekeeper Status: TikTok has joined Meta in challenging the “gatekeeper” status assigned to them under the Digital Markets Act (DMA), a new EU law imposing stricter regulations on tech companies. Meta, in its appeal on Wednesday, contested the “gatekeeper” designations for its Messenger and Marketplace platforms but did not dispute the status for Facebook, Instagram, and WhatsApp. The EU identified 22 “gatekeeper” services run by six tech giants, including Microsoft, Apple, Google, Amazon, Meta, and TikTok.
While Microsoft, Google, and Amazon didn’t challenge their designations, Apple has not yet commented on its plan, with the deadline for appeals set for November 16.
TikTok’s appeal is based on the argument that its designation undermines the DMA’s goal by shielding established gatekeepers from newer competitors like TikTok. The video-sharing platform claims it doesn’t meet the law’s revenue threshold of 7.5 billion per annum generated in the European Economic Area.
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TikTok, with over 134 million monthly users, asserts its role as a challenger, not an incumbent, in digital advertising. The company questions its gatekeeper status, emphasizing that it was designated based on ByteDance’s global market capitalization, primarily influenced by non-European business lines.
The DMA considers companies with more than 45 million monthly active users and a market capitalization of 75 billion as gatekeepers providing a core platform service. TikTok argues that its parent company, ByteDance’s, global market capitalization doesn’t accurately represent its European operations.
Our Reader’s Queries
Is TikTok a gatekeeper?
ByteDance’s TikTok has requested the European court to halt its classification as a gatekeeper under the new EU tech regulations until the court decides on its challenge against the label. The Chinese conglomerate is seeking a suspension of the designation until the judges rule on the matter.
What is the DMA designation of gatekeepers?
The European Commission recently announced that six major companies, including Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft, have been designated as “gatekeepers” under the Digital Markets Act. This regulation aims to promote fair competition in the digital sector and ensure that these companies do not abuse their dominant market positions. The announcement was made via a press release on September 6, 2023.
What is the DMA designation decision?
The Digital Markets Act (DMA) has taken its first steps with the European Commission’s adoption of decisions designating Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft as “gatekeepers” for 22 “core platform services.” This move aims to regulate the power of these tech giants and promote fair competition in the digital market. The DMA is a significant step towards ensuring a level playing field for all players in the industry.