Sorry, TikTok, but you have to play by our rules. So said a European Union court to the Chinese social media company this week.

The ruling came after TikTok challenged its classification under the bloc's Digital Markets Act (DMA), which says the social media behemoth is an online "gatekeeper" with the likes of Google, Meta, and Apple, and has to abide by extra regulations.

As EuroNews notes, TikTok argued that its classification “risks undermining the DMA's own stated goal by protecting actual gatekeepers from newer competitors like TikTok.” The EU judges didn't buy the argument though, saying that, since 2018, the company has “succeeded in increasing its number of users very rapidly and exponentially” and that it had “rapidly consolidated its position, and even strengthened that position over the following years," writes the AP.

Under the DMA, TikTok and others, are obligated to increase competition in the digital marketplace or face fines up to 20% of global revenue, and even a breakup of the company.

“The most impactful online companies will now have to play by our EU rules,” Thierry Breton, European Commissioner in charge of digital policy, wrote on X. “DMA means more choice for consumers. Fewer obstacles for smaller competitors. Opening the gates to the Internet.”

Responding to the court's decision, a spokesperson for TikTok stated that "We are disappointed with this decision. TikTok is a challenger platform that provides important competition to incumbent players. While we will now evaluate next steps, we already took measures to comply with the relevant obligations of the DMA ahead of last March's deadline."

The ruling may be appealed to the EU's Court of Justice.

Addictive Design

In February, the EU opened an investigation into what it called TikTok's use of "addictive design," reports the New York Times. The European Commission alleges the design is in violation of the Digital Services Act (DSA) "in areas linked to the protection of minors, advertising transparency, data access for researchers, as well as the risk management of addictive design and harmful content."

As the press release states, the ByteDance-owned social media platform allegedly failed to counter "actual or foreseeable negative effects stemming from the design of TikTok's system, including algorithmic systems, that may stimulate behavioural addictions and/ or create so-called ‘rabbit hole effects'. Such assessment is required to counter potential risks for the exercise of the fundamental right to the person's physical and mental well-being, the respect of the rights of the child as well as its impact on radicalisation processes. Furthermore, the mitigation measures in place in this respect, notably age verification tools used by TikTok to prevent access by minors to inappropriate content, may not be reasonable, proportionate and effective."

Verdict

With the United States beginning the process of banning TikTok, and now the EU's case against the Chinese company, the social media behemoth will need to increasingly focus on litigation and compliance measures around the globe. Luckily for TikTok, its competitors seems to be facing a similar scenario.

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