ByteDance’s popular social media app TikTok appeared before the European Union’s highest court Tuesday in a final effort to overturn its classification as a “gatekeeper” under new digital regulations that impose stricter requirements on major tech companies.
The hearing at the EU Court of Justice in Luxembourg marks the first legal challenge to the Digital Markets Act’s gatekeeper designations, with potential implications for Europe’s broader efforts to regulate Big Tech companies and promote competition.
European regulators classified TikTok as a gatekeeper in September 2023, placing it alongside tech giants including Google (Alphabet), Meta Platforms, Apple, Amazon, Microsoft and Booking.com – all companies with more than 45 million monthly users in Europe.
A lower court had previously rejected TikTok’s initial challenge in 2024, determining the platform satisfied the requirements for gatekeeper status under the new law.
The Digital Markets Act establishes demanding obligations designed to limit Big Tech’s influence, with potential penalties reaching 10% of a company’s yearly revenue for violations.
During Tuesday’s proceedings, TikTok’s legal team contended the lower court incorrectly determined the company met all three gatekeeper criteria: substantial market influence, serving as an essential gateway between businesses and users, and maintaining a dominant market position.
“ByteDance showed not only that its market cap is overwhelmingly derived from its Asian businesses but also they had no connection to Europe, face different competitive dynamics and operate in a distinct regulatory, linguistic and cultural environment,” stated TikTok attorney Bill Batchelor before the 15-judge panel.
Batchelor emphasized that approximately 70% to 80% of TikTok users simultaneously engage with other social media platforms, including Meta’s Facebook and Instagram, Snapchat, and X, indicating users aren’t confined to TikTok’s ecosystem.
“We refer to this as ‘multihoming.’ That means businesses can reach the same end users via multiple other platforms,” Batchelor explained.
However, a European Commission attorney rejected TikTok’s reasoning.
“Lock-in can occur even when some degree of multihoming exists. For example, there may be specific user groups that depend on TikTok,” Commission lawyer Mislav Mataija told the court.
The court’s decision is expected within the coming months. Meta Platforms has also filed a separate challenge regarding its gatekeeper designation for Messenger and Marketplace services.
