In a blow to TikTok’s efforts, the EU’s General Court has dismissed its request for an interim measure to delay the designation of the platform as a “gatekeeper” under the Digital Markets Act (DMA). This designation would require TikTok to adhere to strict antitrust rules. Bloomberg reports that the court found TikTok’s arguments regarding urgency to be insufficient, stating that the company “failed to demonstrate the urgency” necessary for the request to be granted. Although TikTok plans to appeal the gatekeeper designation, the EU has not yet made a final decision on the matter. This rejection means that TikTok will have to temporarily comply with DMA rules set to take effect in March, regardless of the outcome of the appeal.
As a designated gatekeeper, TikTok will be joining other major tech companies like Apple, Meta (formerly Facebook), Amazon, and Google in implementing changes for EU users. These changes include granting third-party businesses access to their services and obtaining user consent for personalized advertising. Failure to comply with the DMA rules can result in significant fines for TikTok and other gatekeeper companies in the millions of euros.
While disappointed with the decision, TikTok spokesperson expressed hope of having their case heard promptly. They stated, “While we are disappointed with the decision, we look forward to having the substance of our case heard on an expedited basis.” TikTok remains committed to appealing the gatekeeper designation and presenting their arguments before the EU.
In a separate development, TikTok is facing an investigation by the EU under the Digital Services Act (DSA) regarding its content moderation rules for minors. Concerns have been raised that the changes made by TikTok to comply with the DSA are not sufficient to protect underage users. The EU probe will delve into these concerns and assess TikTok’s efforts in safeguarding young users on the platform.
Last year, TikTok made several modifications to its platform specifically for its EU users to align with the requirements of the DSA. Notably, TikTok discontinued personalized ads based on user activities for minors, indicating their intention to prioritize the protection of underage individuals. However, the investigation will assess whether these changes are adequate and if any additional measures need to be implemented to ensure the safety of young users on TikTok.
TikTok’s struggle with the EU over the DMA is not an isolated case but rather part of a larger conflict between major tech companies and European regulators. The EU has been actively implementing new regulations to assert its control over tech giants and address concerns related to market dominance and consumer protection. The DMA, along with the DSA, seeks to establish a level playing field and improve accountability within the digital marketplace.
The rejection of TikTok’s request for an interim measure to delay the gatekeeper designation underscores the company’s need to comply with the upcoming DMA rules. TikTok will have to navigate the challenges posed by this designation, along with the ongoing investigation into its content moderation practices. As the battle between Big Tech and the EU continues, TikTok will need to demonstrate its commitment to safeguarding users and address the concerns raised by regulators. Only through effective compliance and meaningful engagement can TikTok hope to overcome these obstacles and maintain its presence in the European market.
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