European justice still does not want to give the slightest point to ByteDance, the parent company of TikTok. She went to the EU court last November to escape theregulation on digital markets(the famous DMA). But in Luxembourg, the verdict has just been delivered. TikTok will not be entitled to any preferential treatment. The Chinese brand must comply with the DMA as quickly as possible. The European court ruled thatTikTok, like other digital giants, was in a dominant position in its market and could use this power to influence the proper development of competition.
Opposite reactions
A few hours after the announcement of this European court decision, TikTok spoke out.The social network, owned by the company ByteDancesaid he was “disappointed”of such a decision. TikTok indeed considers itself to bea “challenger”in the social media market. In its defense, the company points out that it has only been active since 2020. A much more recent arrival than Facebook or Twitter (now X) which arrived in Europe more than 15 years ago.
On the Brussels side, the European Bureau of Consumer Unions (BEUC), which defends our interests, welcomes “good news”. Vannessa Turner, chief advisor to BEUC, recalled ByteDance's obligations following this court decision. The company must “comply with DMA rules and in particular obtain the consent of millions of TikTok users before their personal data can be used for advertising targeting. »
Finally, the European Commission for its part “took note” of this court decision. The body, which is behind the DMA, will ensure its correct application. If TikTok does not comply,the Commission may open an investigationand sanction the company up to 10% of its annual turnover.
Who are the companies covered by the DMA?
In addition to TikTok, other digital giants are in the commission's sights. This is for example the case of Apple. The apple brandrisks a fine of more than $30 billion.
The list of digital applications and services that must comply with the DMA is growing every day, and the criteria necessary to meet these obligations are becoming more and more precise. The new DMA regulations consider that a company present in at least three European countries exceeding 75 billion euros in market capitalization and/or 7.5 billion euros in sales in Europe is considered a“access controller”. These companies must also have 45 million active users to enter the DMA's sights.
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By : Keleops AG
