November 20, 2024 DMABy DICOPO

General Court dismisses TikTok’s challenge to gatekeeper designation under the DMA

In september 2023, the Commission designated TikTok as a gatekeeper under the Digital Markets Act (DMA), in light of its global market value and number of TikTok users in the EU. The decision was challenged by Bytedance Ltd, the parent company of TikTok. However, the General Court upheld the Commission’s decision. Bytedance claimed that its globl market value was largely attributed to China, therefore not impacting the EU market. Nevertheless, the Court found that the high global market value and large number of TikTok users in the EU demonstrated the company’s potential for user monetization even within the EU. As to Bytedance’s argument that it lacked an ecosystem and network effects, the General Court highilighted the app’s rapid growth since its launch in 2018. TikTok’s rapid growth was also used to dismiss Bytedance’s claim that it was a challenger other social media competitors, especially as young users spend more time on TikTok than other networks.