TikTok Fails in First Attempt to Challenge EU Big Tech Laws

The General Court of the European Union has ruled that TikTok lost its first legal battle against the EU’s assault on big tech. The court decided that ByteDance Ltd.’s TikTok could not evade the recently passed Digital Markets Act (DMA), which attempts to regulate the biggest online companies, including Google and Apple Inc.

TikTok was found to comply with the DMA’s requirements by the General Court of the European Union after the DMA entered into effect in March. The European Commission’s ruling was challenged by ByteDance, but the court determined that the company lacked sufficient justification. TikTok stated that it was disappointed with the decision and added that it had previously put policies in place to make sure the DMA was followed. The highest court in the European Union, the European Court of Justice, can contest the decision.

The DMA, or Digital Markets Act
The DMA works to stop tech giants from engaging in anti-competitive practices. Platforms with an estimated market value of €75 billion or yearly revenue in the European Union of at least €7.5 billion ($8.2 billion) are subject to the regulation. In extra, every platform must have over 45 million active end users each month and over 10,000 active enterprise users yearly inside the European Union (EU).

Fears for the Tech Giants
The DMA forbids large platforms from favoring their services over those of its rivals, combining personal data from several platforms, and competing with them using data obtained from outside suppliers. They also need to let users download programs from other platforms. Major companies including Apple’s Safari, Amazon.com Inc.’s Marketplace, and Alphabet Inc.’s Google search engine are all impacted by this law. Apple and Meta Platforms Inc. have both expressed doubts about the DMA’s classification of specific services.

Broader context
The legal action against TikTok is a part of a broader international investigation into the site, which raises concerns over its ownership by China. In April, US President Joe Biden approved legislation that would have made TikTok illegal unless ByteDance gave up its ownership. Congress swiftly approved this bill, which led TikTok to doubt its validity.

In addition, TikTok is being investigated by EU regulators for potentially child-harming content, which may result in fines of up to 1% of the company’s annual sales overall under the EU’s recently passed Digital Services Act.

In summary
The EU’s tough position on regulating Big Tech is confirmed by the decision against TikTok. The company is subject to an international inquiry while it tries to comply with the DMA, which has significant implications for both its business operations and the advancement of the computer industry.

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