The owner of social media platform TikTok has lost its appeal against its status as a gatekeeper according to EU rules.

Under the EU Digital Markets Act (DMA), ByteDance has been designated as a gatekeeper which requires it to make its messaging apps interoperable with those of its rivals and let users decide which apps to have pre-install on their devices.

ByteDance argued has argued that it is challenger on the market because rivals including Meta and Alphabet have launched new services, such as reels and shorts, which imitate its features and drive growth.

The court argued that while TikTok was a challenger, it has consolidated and strengthened its position over recent years.

The Luxembourg-based General Court dismissed the challenge from ByteDance, siding with the EU Commission by stating that the company had not substantiated its arguments.

In its ruling, the court said that the EU Commission could consider ByteDance a gatekeeper as it meets the quantitative thresholds laid down in the DMA in terms of its global market value and number of users in the EU.

It went on to say that TikTok is an important gateway which allows business users to reach their end users, adding that the firm “enjoyed an entrenched and durable position” in the market.
National Technology News has reached out to TikTok for comment.

Last month, ByteDance announced it would invest 10 million ringgit ($2.13 billion) in establishing an artificial intelligence hub in Malaysia.

As part of the deal, ByteDance will also bolster its data centre facilities in Malaysia's Johor state with an additional investment of 1.5 billion ringgit.

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