Key facts
- An adviser to the EU's top court recommended dismissing TikTok's challenge to its gatekeeper designation under the Digital Markets Act.
- TikTok's parent company, ByteDance, argued it faces different competitive dynamics and operates in a distinct regulatory environment.
- The European Commission argued TikTok is trying to downplay its dominance despite widespread use.
- The Digital Markets Act aims to prevent large online platforms from becoming monopolies.
An adviser to the Court of Justice of the European Union has recommended dismissing TikTok's challenge to its designation as a gatekeeper under the EU's Digital Markets Act. The opinion, issued on Thursday, supports EU regulators in their fight against the social media platform.
ByteDance, TikTok's parent company, argued that it is a challenger rather than a dominant digital empire and that its users are not trapped within its ecosystem. Lawyers for ByteDance contended that the company's market capitalization is largely derived from Asian businesses and that it faces different competitive dynamics in Europe.
The European Commission, however, urged the court to uphold the designation, arguing that TikTok has become one of Europe's most powerful digital gateways. Commission lawyers stated that the Digital Markets Act was designed to regulate fast-growing platforms before they become monopolies.