TikTok Suffers Setback in Initial Challenge to EU Big Tech Regulations

The European Union's General Court ruled against TikTok, controlled by ByteDance Ltd., in its first legal battle with the EU over the new Digital Markets Act (DMA).

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The court found that TikTok meets the DMA's standards and rejected ByteDance's complaint.

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TikTok expressed dissatisfaction with the verdict but stated it has already taken steps to comply with the DMA.

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The DMA aims to prevent dominant tech companies from engaging in anti-competitive behavior.

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It applies to platforms with annual EU revenue of at least €7.5 billion ($8.2 billion) or a market value of €75 billion.

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Platforms must also have more than 45 million monthly active users and over 10,000 annual active business users in the EU.

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The DMA restricts big platforms from favoring their services, merging private data across platforms, and competing with third-party vendors using their data.

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TikTok's legal issues are part of a wider global investigation into the platform, including concerns about its Chinese ownership.

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In the US, legislation has been passed to ban TikTok unless ByteDance divests control.

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EU regulators are also investigating TikTok for potential harm to children, with possible fines under the Digital Services Act.

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As TikTok works to comply with the DMA, it remains under global scrutiny, impacting its business practices and growth.

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