afaqs! news bureau

TikTok and Meta challenge EU rules on digital giants

The Digital Markets Act, effective by March, outlines guidelines for major tech firms to enhance user choices, imposing hefty penalties for non-compliance.

TikTok and Meta are challenging the new European Union regulations aimed at curbing the influence of digital giants and fostering fair online competition for consumers. TikTok, in a Thursday blog post, expressed its objection to being labelled an online "gatekeeper" under the Digital Markets Act, asserting its position as a new competitor challenging established players in the social media landscape.

A day prior, Meta expressed disagreement with the 27-nation bloc's decision to categorise its marketplace and Messenger as gateway services under the new regulations. Meta stated that it is seeking "clarification on specific points of law."

Scheduled for March implementation, the Digital Markets Act outlines guidelines for major tech firms, aiming to enhance user choices while imposing significant penalties for non-compliance.

Describing TikTok as a gatekeeper contradicts the DMA's objective of safeguarding established gatekeepers from emerging competitors like TikTok. The company contends that the video-sharing app is a formidable challenger to larger social media counterparts.

In September, the gatekeeper designation was extended to Amazon, Apple, Google, Microsoft, TikTok's parent company ByteDance, and Meta. This is due to their provision of 22 "core platform services," including Chrome and Safari Browsers, WhatsApp messaging, and Google Maps, serving as pivotal gateways connecting businesses and consumers.

Meta doesn't contest the gatekeeper designation but believes the European Commission was wrong in singling out Marketplace and Messenger as core platform services.

The appeal "does not alter or detract from our firm commitment to complying with the DMA, and we will continue to work constructively with the European Commission to prepare for compliance," Meta stated.

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