According to a verdict by the European Union’s General Court, TikTok was defeated in its first legal battle with the European Union’s (EU) attack on big tech. The court ruled that TikTok, controlled by ByteDance Ltd., cannot avoid the new Digital Markets Act (DMA), which aims to govern the most powerful digital corporations, such as Google and Apple Inc.
Court Ruling
Image Source: luxtimes.lu
The European Union’s General Court decided that TikTok met the DMA’s standards, which went into operation in March. The court found that ByteDance’s complaint opposing the European Commission’s judgment lacked adequate grounds. TikTok expressed unhappiness with the verdict and noted that it has already implemented procedures to ensure compliance with the DMA. The ruling can still be challenged by the European Court of Justice, the European Union’s top court.
The Digital Markets Act (DMA)
The DMA tries to prohibit dominant tech companies from carrying out anti-competitive behaviour. The rule affects platforms with annual revenue in the European Union of at least €7.5 billion ($8.2 billion) or an estimated market value of €75 billion. Furthermore, all platforms need to have more than forty-five million monthly active end users in addition to more than 10,000 annual active business users in the European Union (EU).
Concerns for Tech Giants
The DMA prohibits big platforms from preferring their services over competitors’, merging private information across numerous platforms, and competing against them with data gathered from third-party vendors. In addition, they must allow consumers to download apps from other platforms. This regulation affects major firms such as Alphabet Inc.’s Google search engine, Apple’s Safari, as well as Amazon.com Inc.’s Marketplace. Both companies, Apple and Meta Platforms Inc. have questioned the DMA’s categorization of certain services.
Broader Context
TikTok’s legal proceeding is part of a larger global probe of the platform, which includes worries about its Chinese holdings. In the United States, President Joe Biden agreed to the legislation in April to outlaw TikTok unless ByteDance relinquishes control. This measure quickly passed via Congress, causing TikTok to question its legitimacy.
Furthermore, European Union regulators are looking into TikTok for elements that may be damaging to children, which could lead to fines of up to 1% of its yearly revenue in total under the European Union’s new Digital Services Act.
Conclusion
The verdict against TikTok confirms the EU’s strict stance on governing Big Tech. As the corporation works to comply with the DMA, it stays under worldwide investigation, with substantial ramifications for its business practices as well as development in the computer industry.
I am a student pursuing my bachelor’s in information technology. I have a interest in writing so, I am working a freelance content writer because I enjoy writing. I also write poetries. I believe in the quote by anne frank “paper has more patience than person