TikTok is aligning with Meta, Facebook’s parent company, to contest their “gatekeeper” status according to the European Union’s Digital Markets Act (DMA). This follows Microsoft, Google, and Amazon opting not to challenge their designations, while Apple has yet to respond.
The DMA will compel tech behemoths to simplify user transitions between rival services. In September, Europe identified 22 “gatekeeper” services operated by six tech firms: Microsoft, Apple, Google (Alphabet), Amazon, Meta, and TikTok (ByteDance).
What TikTok has to say
TikTok stated that it falls below the law’s revenue threshold of EUR 7.5 billion annually in the European Economic Area. The appeal is rooted in the concern that the designation poses a risk of undermining the Digital Markets Act’s intended objective by shielding established gatekeepers from emerging competitors like TikTok.
Entities with over 45 million monthly active users and a market capitalization exceeding EUR 75 billion are categorized as gatekeepers. TikTok contends that, rather than being a gatekeeper, its platform—operating in Europe for just over five years—is a formidable challenger to more established platform businesses. The company argues that its gatekeeper designation is derived from its parent company, ByteDance, and its global market capitalization.
Meta’s ‘gatekeeper’ challenge
Meta contested the “gatekeeper” designations for its Messenger and Marketplace platforms but opted not to challenge the status for Facebook, Instagram, and WhatsApp.
A company spokesperson stated, “This appeal seeks clarification on specific legal points regarding the designations of Messenger and Marketplace under the DMA.
The spokesperson emphasized that the appeal does not change their unwavering commitment to complying with the DMA. They expressed the intention to continue constructive collaboration with the European Commission to prepare for compliance. As for Apple, there has been no comment on their strategy, and the deadline for appeal is November 16. It’s noteworthy that EU antitrust regulators are examining whether Microsoft’s Bing and Apple’s iMessage should be designated as “gatekeepers.”
