TikTok and Meta have both filed appeals against their legal standing under the Digital Markets Act, an EU law that imposes harsher controls on technology companies while also making it easier for users to switch between competing services.
Meta, on the specified day, opposed the classifications for its Messenger and Marketplace platforms but abstained from disputing the status for Facebook, Instagram, and WhatsApp. In September, the European Union singled out 22 services managed by six tech corporations – Microsoft, Apple, Alphabet’s Google, Amazon, Meta, and ByteDance’s TikTok – for scrutiny.
Despite the fact that Microsoft, Google, and Amazon have not questioned their designations, and Apple has yet to announce its opinion. TikTok, a video-sharing platform, alleges it does not meet the law’s annual income requirement of 7.5 billion euros earned in the European Economic Area.
According to the DMA, gatekeepers delivering key platform services are organizations with over 45 million monthly active users and a market valuation of 75 billion euros. TikTok claims it was labeled as a gatekeeper based on ByteDance’s worldwide market valuation, which is mostly sourced from non-European business lines.
ByteDance, based in China, recently repurchased shares from US employees, valuing the company at more than $220 billion. TikTok, which has over 130 million monthly users, claims to be a challenger, not an incumbent, in digital advertising, and is concerned about the European Commission’s failure to conduct a full investigation into its standing.
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