ByteDance-owned TikTok has contested the "gatekeeper" status ascribed by the EU's Digital Markets Act or DMA, aligning its stance with Meta Platform Inc.'s
What Happened: Reuters reported that TikTok officially lodged an appeal on Thursday against the "gatekeeper" classification under the DMA.
The DMA is a legislative measure geared towards bolstering regulations for tech firms and facilitating user transitions between rival services.
Previously, Meta had contested the same status for its Messenger and Marketplace platforms. The Mark Zuckerberg-led company did not extend this challenge to Facebook, Instagram, and WhatsApp.
In September, the EU singled out 22 "gatekeeper" services managed by six tech behemoths - Microsoft Corporation
Of these, Microsoft, Google, and Amazon accepted their designations, while Apple's stance remains unknown. Appeals had to be lodged by Nov. 16.
TikTok, which boasts over 134 million monthly users, argued that it falls short of the DMA's criteria since it hasn't accrued revenues of 7.5 billion euros or $8.13 billion annually in the European Economic Area.
"Our appeal is based on the belief that our designation risks undermining the DMA's own stated goal by protecting actual gatekeepers from newer competitors like TikTok," the company stated.
It further asserted that it is a contender, not a gatekeeper, in digital advertising, and no market investigation was conducted concerning its designation by the European Commission.
Why It Matters: This development comes after last month it was reported that the EU has been assessing if Microsoft's Bing and TikTok contest the EU's 'Gatekeeper' Designation, Following Meta's Lead should be subjected to new tech regulations under the DMA.
The EU has been surveying users and rivals to gather vital data, seeking their perspectives on these services and their significance relative to alternatives. The recent actions by TikTok and Meta highlight the contentious nature of the "gatekeeper" status and the potential for ongoing disputes as companies navigate the changing landscape of digital regulations.
