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TikTok and Meta Battle Back: Challenging EU Gatekeeper Status

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In a battle for gatekeeper status, TikTok and Meta have lodged appeals against their designation under the Digital Markets Act (DMA) in the European Union.

Despite not meeting the revenue threshold, TikTok argues that its parent company’s global market capitalisation resulted in its gatekeeper status.

The outcome of these appeals could have significant implications for the regulatory framework surrounding digital platforms.

This article explores the challenges faced by TikTok and Meta as they question their gatekeeper status and the potential impact on competition in the EU market.

Background on TikTok and Meta’s Appeal

TikTok is a social media platform that allows users to create and share short videos. It gained popularity for its easy-to-use interface, diverse content, and viral challenges. Many users enjoy the app’s entertainment value and the ability to discover new trends and creators.

Meta, formerly known as Facebook, is the parent company that owns TikTok. The appeal of Meta lies in its extensive user base, global reach, and the ability to connect with friends and family. It offers various features like photo sharing, messaging, and news updates, making it a comprehensive social media platform.

Both TikTok and Meta have their unique appeal, catering to different preferences and interests. TikTok focuses on creative expression through short videos

One of the key reasons behind TikTok and Meta’s appeal against the gatekeeper status under the Digital Markets Act (DMA) is their contention that they do not possess significant market power, thus undermining the goal of promoting competition.

Both companies argue that they should not be considered gatekeepers as they claim not to have substantial control over the market. TikTok asserts that it is a capable challenger to more established platform businesses and has been operating in Europe for just over five years.

Additionally, TikTok highlights that its parent company’s global market capitalisation led to its gatekeeper designation, despite not meeting the revenue threshold required by the DMA. This designation, in their view, undermines the DMA’s objective of fostering competition.

Gatekeeper Designations in the European Union

TikTok and Meta’s challenge against the gatekeeper status under the Digital Markets Act leads to an examination of gatekeeper designations in the European Union. The EU has designated 22 gatekeeper services, including those operated by Microsoft, Apple, Google, Amazon, Meta, and TikTok.

While Microsoft, Google, and Amazon did not contest their gatekeeper designations, Apple’s plan regarding the gatekeeper status is yet to be known. Meta has contested the gatekeeper designations for Messenger and Marketplace but not for Facebook, Instagram, and WhatsApp.

These gatekeeper designations aim to impose stricter rules on tech companies and facilitate easier switching between competing services for users. The outcome of TikTok and Meta’s appeal could have significant implications for the regulatory framework of digital platforms, impacting their obligations and scrutiny.

Tiktok’s Position as a Challenger

Continuing the examination of gatekeeper designations in the European Union, TikTok asserts its position as a formidable challenger to entrenched platform businesses. Despite operating in Europe for just over five years, TikTok argues that it has the capability to challenge more established players in the market.

The company contests its gatekeeper designation, claiming that it does not meet the revenue threshold required by the Digital Markets Act (DMA). According to the DMA, companies with over 45 million monthly active users and a market capitalisation of €75 billion are considered gatekeepers. TikTok argues that its parent company’s global market capitalisation led to its designation, despite not meeting the revenue criteria specifically in the European Economic Area.

TikTok believes that its designation undermines the DMA’s objective of promoting competition in the digital market.

Thresholds for Gatekeeper Status Under the Digital Markets Act (DMA)

Moving forwards in the examination of gatekeeper designations in the European Union, the Digital Markets Act (DMA) sets specific thresholds for companies to be considered gatekeepers.

According to the DMA, companies with more than 45 million monthly active users and a market capitalisation of €75 billion are deemed gatekeepers.

However, TikTok argues that it does not meet the revenue threshold of €7.5 billion generated in the European Economic Area. The company points out that its gatekeeper designation is based on its parent company’s global market capitalisation, which includes non-European operations.

TikTok believes that its revenue and user base do not qualify it as a gatekeeper under the DMA.

This threshold for gatekeeper status is a crucial aspect of the ongoing debate surrounding digital platform regulation.

Implications of the Appeal and Regulatory Framework

The outcome of the appeal against their gatekeeper status could have significant implications for both TikTok and Meta, as it may result in additional obligations and scrutiny under the regulatory framework for digital platforms.

If TikTok and Meta are considered gatekeepers, they could potentially face stricter rules and requirements aimed at promoting fair competition and protecting users’ rights. However, critics argue that these rules may stifle innovation and limit consumer choice.

The debate over gatekeeper status and regulation reflects the ongoing challenges in the digital market, where dominant platforms have been accused of exerting too much control over the market and hindering competition.

Ultimately, the decision on their gatekeeper status will shape the regulatory landscape for digital platforms and have far-reaching consequences for both TikTok and Meta.

Conclusion

In summary, the appeals lodged by TikTok and Meta against their gatekeeper status in the European Union highlight the ongoing battle over regulatory control in the digital market.

As these tech giants challenge their designation, the outcome of these appeals will have far-reaching implications for the regulatory framework surrounding digital platforms.

The conflict between established players and emerging challengers adds an intriguing layer to the ongoing saga of gatekeeper status, reminiscent of a battle between David and Goliath.

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Lisa
Lisa
Lisa is a skilled writer with a huge passion for journalism. With a talent for storytelling and a deep understanding of current events, she has quickly become a respected journalist in the industry. Lisa's articles are always well-written and thought-provoking, and she has a knack for finding the most interesting angles on any story. She is known for her ability to connect with her readers and engage them in the issues that matter most. Lisa is a dedicated journalist who is passionate about making a positive impact through her writing. When she's not working, Lisa enjoys hiking, yoga, and spending time with her loved ones.

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