TikTok is joining Facebook parent company Meta in challenging the “gatekeeper” status under the European Union’s (EU) Digital Markets Act (DMA). The development comes a few days after Microsoft, Google and Amazon decided not to challenge their designations, while Apple is yet to respond on the issue.
The DMA will essentially force tech giants to make it easier for users to move between competing services.Europe, in September, selected 22 “gatekeeper” services, run by six tech companies: Microsoft, Apple, Alphabet’s Google, Amazon, Meta andByteDance‘s TikTok.
What TikTok has to say
TikTok said that it does not meet the law’s threshold for revenues generated in the European Economic Area of EUR 7.5 billion annually.
“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,” it said.
The companies that have more than 45 million monthly active users and a market capitalisation of EUR 75 billion are considered gatekeepers.
“Far from being a gatekeeper, our platform, which has been operating in Europe for just over five years, is arguably the most capable challenger to more entrenched platform businesses,” it added. The company said it was designated a gatekeeper based on its parent company, ByteDance’s global market capitalisation.
Meta’s ‘gatekeeper’ challenge
Meta also challenged the “gatekeeper” designations for its Messenger and Marketplace platforms but did not appeal against the status for Facebook, Instagram and WhatsApp.
“This appeal seeks clarification on specific points of law regarding the designations of Messenger and Marketplace under the DMA,” a company spokesman said.
“It does not alter or detract from our firm commitment to complying with the DMA, and we will continue to work constructively with the European Commission to prepare for compliance,” the spokesperson added.
Apple is yet to comment on its plan and the last date to appeal is November 16. Notably, the EU antitrust regulators are investigating whether Microsoft’s Bing and Apple’s iMessage should be designated as “gatekeepers”.
The DMA will essentially force tech giants to make it easier for users to move between competing services.Europe, in September, selected 22 “gatekeeper” services, run by six tech companies: Microsoft, Apple, Alphabet’s Google, Amazon, Meta andByteDance‘s TikTok.
What TikTok has to say
TikTok said that it does not meet the law’s threshold for revenues generated in the European Economic Area of EUR 7.5 billion annually.
“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,” it said.
The companies that have more than 45 million monthly active users and a market capitalisation of EUR 75 billion are considered gatekeepers.
“Far from being a gatekeeper, our platform, which has been operating in Europe for just over five years, is arguably the most capable challenger to more entrenched platform businesses,” it added. The company said it was designated a gatekeeper based on its parent company, ByteDance’s global market capitalisation.
Meta’s ‘gatekeeper’ challenge
Meta also challenged the “gatekeeper” designations for its Messenger and Marketplace platforms but did not appeal against the status for Facebook, Instagram and WhatsApp.
“This appeal seeks clarification on specific points of law regarding the designations of Messenger and Marketplace under the DMA,” a company spokesman said.
“It does not alter or detract from our firm commitment to complying with the DMA, and we will continue to work constructively with the European Commission to prepare for compliance,” the spokesperson added.
Apple is yet to comment on its plan and the last date to appeal is November 16. Notably, the EU antitrust regulators are investigating whether Microsoft’s Bing and Apple’s iMessage should be designated as “gatekeepers”.
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