EU Court Upholds ByteDance's 'Gatekeeper' Status Under Digital Markets Act

The EU General Court has ruled that ByteDance, the owner of TikTok, must comply with the Digital Markets Act, classifying it as an online gatekeeper alongside Apple, Google, and Microsoft. Despite ByteDance's argument against this classification, the court cited its rapid user growth. ByteDance plans to evaluate its next steps.

The European Union's General Court has ruled that ByteDance, the parent company of TikTok, must comply with the bloc's Digital Markets Act, effectively labeling it as an online gatekeeper. This decision aligns ByteDance with other tech giants like Apple, Google, and Microsoft under stricter regulations.

The Digital Markets Act, which came into effect this year, aims to curtail the dominance of Big Tech and promote fair competition online by providing consumers more choices. TikTok had countered that it was a new competitor in social media, challenging established firms such as Meta, the owner of Facebook and Instagram.

However, the court pointed to TikTok's exponential user growth since 2018 as a justification for its decision. ByteDance expressed disappointment in the ruling, stating that TikTok is a competitive platform offering alternatives to entrenched players. The company plans to assess its next steps while noting it has already taken steps to comply with the DMA. The decision can be appealed to the EU's Court of Justice, but only on legal grounds.

(With inputs from agencies.)