The article discusses TikTok’s decision to appeal against its “gatekeeper” status under the Digital Markets Act (DMA), an EU law that imposes stricter regulations on tech companies and facilitates user movement between competing services. Meta, formerly known as Facebook, also appealed against the designations for its Messenger and Marketplace platforms but did not challenge the status of Facebook, Instagram, and WhatsApp. In September, the European Union identified 22 “gatekeeper” services operated by six tech companies, including Microsoft, Apple, Google, Amazon, Meta, and TikTok.
While Microsoft, Google, and Amazon did not contest their designations, Apple has not yet commented on its plan. The deadline to appeal is November 16. TikTok’s appeal is based on the belief that its designation as a gatekeeper could hinder the DMA’s goal of protecting newer competitors like TikTok from established platforms. The company argues that it does not meet the law’s revenue threshold of 7.5 billion euros per annum generated in the European Economic Area.
Under the DMA, gatekeepers are defined as companies with more than 45 million monthly active users and a market capitalization of 75 billion euros, providing a core platform service. TikTok states that its gatekeeper designation is based on ByteDance’s global market capitalization, which is primarily influenced by business lines that do not operate in Europe. Last month, ByteDance repurchased shares from its U.S. employees, valuing the company at $223.5 billion. TikTok asserts that it is a challenger in digital advertising, not an incumbent, and that no market investigation was conducted regarding its designation by the European Commission.