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TikTok Mounts Last-Ditch Bid to Escape EU’s Big Tech Regulations

ByteDance brought its challenge against the European Commission to the EU Court of Justice on May 12, seeking to overturn TikTok’s designation as a “gatekeeper” under the Digital Markets Act.

As Reuters reports, the hearing marks the first time the EU Court of Justice has considered a gatekeeper designation challenge under the DMA. A lower court tribunal rejected ByteDance’s initial challenge in 2024, finding that TikTok met the criteria for the designation, which applies to platforms with more than 45 million monthly EU users.

Gatekeeper status subjects companies to an extensive list of compliance requirements. Violations carry fines of up to 10% of annual global turnover.

ByteDance Disputes Market Position

TikTok’s lawyer, Bill Batchelor, argued before a panel of 15 judges that ByteDance failed all three criteria for gatekeeper status: significant market impact, serving as a key gateway between businesses and users, and holding an entrenched market position.

“ByteDance showed not only that its market cap is overwhelmingly derived from its Asian businesses, but also that they had no connection to Europe, face different competitive dynamics and operate in a distinct regulatory, linguistic and cultural environment,” Batchelor said.

He added that 70% to 80% of TikTok users access multiple platforms simultaneously, including Facebook, Instagram, Snap, and X. “We refer to this as ‘multihoming.’ That means businesses can reach the same end users via multiple other platforms,” Batchelor said.

Commission Pushes Back

A European Commission lawyer rejected ByteDance’s position. “Lock-in can occur even when some degree of multihoming exists. For example, there may be specific user groups that depend on TikTok,” said Mislav Mataija.

The Court is expected to rule within the coming months. The case arrives as the Commission separately pursues TikTok over alleged DSA violations related to its recommendation algorithms and addictive design features, including infinite scroll and autoplay.

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karina gandola

Karina loves writing about the influencer marketing space and an area she is passionate about. She considers her faith and family to be most important to her. If she isn’t spending time with her friends and family, you can almost always find her around her sweet pug, Poshna.

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