TikTok and its parent company, ByteDance , have launched a last-ditch legal battle before the European Union’s top court , seeking to overturn the platform’s designation as a “gatekeeper” under the Digital Markets Act (DMA). The case is seen as pivotal for the future of European technology law and could shape how the EU deals with big digital platforms in the years to come.
The “gatekeeper” designation comes with strict compliance obligations, which aim to limit the power of big tech companies and ensure fairer competition in the digital market. TikTok’s appeal is the first major DMA case to be heard by the Court of Justice of the European Union, which gives it particular political and regulatory weight.
EU: What the “gatekeeper” designation means for Big Tech
The European Union introduced the DMA with the aim of limiting the dominance of technology giants that act as “digital gateways” between businesses and users. Companies that exceed certain user and economic power thresholds are designated gatekeepers and are required to follow strict rules of transparency, interoperability and competition.
See also: UK TikTok: Paying a subscription to remove ads
TikTok officially joined the gatekeepers list in September 2023, alongside companies like Apple, Google, Meta Platforms, Amazon, Microsoft, and Booking.com. The decision was based primarily on huge number of users in Europe, which exceeds 45 million monthly.
Inclusion in this category entails increased scrutiny by European authorities, but also the risk of fines that can reach up to 10% of a company's global annual turnover.
TikTok's defensive line against the European Commission
During the hearing, TikTok's lawyers argued that the company does not have the same power and influence in the European market as other tech giants. ByteDance's legal representative, Bill Batchelor, argued that much of the company's stock market value comes from operations in Asia , not Europe.
At the same time, TikTok has tried to prove that its users are not “locked” into its ecosystem. According to the company’s arguments, 70%-80% of users simultaneously use other platforms such as Facebook, Instagram, Snap and X.
TikTok has described this phenomenon as “multi-homing,” meaning the ability for users and businesses to be active on multiple platforms simultaneously. Based on this logic, the company argues that it does not act as an exclusive intermediary between businesses and consumers.
See also: You'll soon be able to listen to Apple Music within TikTok
The European Commission's response
The European Commission rejected TikTok's arguments, insisting that the existence of competing apps does not negate the platform's gatekeeper role. Commission spokesman Mislav Mataijastressed that even in a multi-platform environment there may be groups of users who are significantly dependent on TikTok.
European authorities are particularly concerned about the growing influence of content promotion algorithms and the way large platforms shape users' access to information, advertising and commercial services. The TikTok case is seen as crucial as it could set a legal precedent for future disputes between the EU and Big Tech companies.
Europe's broader battle against tech platforms
The European Union has stepped up its efforts in recent years to curb the power of tech giants, through both the DMA and the Digital Services Act (DSA). The new regulations seek to impose more transparency on algorithms, stricter data protection rules and greater accountability for illegal or harmful content.
TikTok's case is not unique. Meta Platforms has also challenged the gatekeeper designation for services like Messenger and Marketplace, showing that tech companies are not going to accept Europe's new regulatory framework without protest.
See also: TikTok: Will not introduce end-to-end encryption for direct messages
A decision that could change the digital market
The final ruling by the Court of Justice of the European Union is expected in the coming months and is likely to have a major impact on the global tech industry. If the court rules in favor of TikTok, the DMA could be significantly weakened. Conversely, if it upholds the European Commission’s position, the EU will strengthen its ability to impose stricter restrictions on the world’s largest digital platforms .
In any case, the case demonstrates that the battle for control of the digital economy has just begun and that relations between governments and Big Tech are entering a new, more confrontational era.
