TikTok’s attempt to delay the European Union (EU) from designating it as a “gatekeeper” under the Digital Markets Act (DMA) antitrust rules has been unsuccessful. The EU’s General Court has rejected owner ByteDance’s request for an interim measure, which would have bought TikTok more time to implement the regulations. The court found that TikTok failed to demonstrate the required urgency. While TikTok is still appealing the gatekeeper designation, it will temporarily have to comply with the DMA rules that go into effect in March.
The Court’s Decision
The EU’s General Court dismissed ByteDance’s request for an interim measure, stating that the company did not show a real risk of disclosure of confidential information or any serious and irreparable harm. This rejection means that TikTok will have to comply with the DMA rules, at least temporarily. These rules include allowing third-party businesses access to TikTok’s services and obtaining user consent for personalized advertising. Failure to comply with DMA rules could result in significant fines for TikTok and other gatekeeper companies.
TikTok’s Response
TikTok expressed disappointment with the court’s decision but looks forward to presenting its case on an expedited basis. The company remains determined to challenge its gatekeeper status in the EU and seek a favorable outcome. TikTok believes that it has a valid case and will continue to pursue the matter through the appeal process.
As TikTok is now considered a gatekeeper, it joins the ranks of other major tech companies like Apple, Meta, Amazon, and Google that must comply with the DMA rules. These rules aim to level the playing field for businesses and ensure fair competition in the digital market. For TikTok’s EU users, this designation means potential changes to the platform’s operations and advertising practices to align with the DMA requirements. TikTok also faces the risk of substantial fines if it breaches any DMA rules in the future.
In addition to the rejection of its request for an interim measure, TikTok is facing another EU probe concerning its content moderation rules for minors. This investigation arises from concerns that TikTok’s current measures to protect underage users are insufficient under the EU’s new Digital Services Act (DSA). Last year, TikTok made some changes for its EU users in response to the DSA, such as discontinuing the serving of personalized ads to minors based on their activities on the platform. However, this probe will assess whether these changes adequately safeguard young users.
TikTok’s bid to delay its gatekeeper designation under the EU’s DMA antitrust rules has been thwarted by the General Court. Despite the rejection of its request for an interim measure, TikTok plans to continue appealing the decision and presenting its case to the court. The platform’s gatekeeper status means it must make certain changes to comply with DMA regulations and potentially face significant fines for any violations. Additionally, TikTok is now under scrutiny for its content moderation rules for minors, with an EU probe underway to assess their effectiveness. TikTok will have to navigate these challenges as it strives to maintain its presence in the European market.
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