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TikTok Loses Legal Battle Against the EU’s Digital Markets Act

TikTok Loses Legal Battle Against the EU’s Digital Markets Act
Last Updated: 2 December 2024

Introduction

TikTok has lost its legal battle to avoid being subject to the European Union’s Digital Markets Act (DMA). The company has stated it will comply with the court’s ruling. In addition to this setback, TikTok faces the looming threat of a potential ban in the United States due to violations of child protection laws. The future of the app in both the US and Europe remains uncertain.

TikTok’s Struggles in Europe

TikTok’s legal battle in Europe revolved around whether the platform should be subject to the Digital Markets Act, a law designed to curb monopolistic practices in digital markets. The European Commission concluded that TikTok has a large enough user base to be affected by the regulations, and TikTok’s parent company, ByteDance, challenged this decision in court. However, the court dismissed ByteDance’s objections, solidifying TikTok’s inclusion under the DMA.

Although ByteDance may still appeal the ruling, no plans to do so have been announced. Instead, the company has begun working towards ensuring compliance with the requirements set forth by the DMA.

Potential Ban in Europe Due to Child Protection Concerns

Despite its compliance with the DMA, TikTok could still face a ban in Europe due to concerns over its impact on children. Ursula von der Leyen, President of the European Commission, expressed concerns earlier this year, calling the platform “dangerous.” One particular issue is TikTok’s practices that might intentionally encourage addictive behavior, especially among children.

The European Commission is concerned that offering incentives such as gift vouchers for users who watch videos may encourage children to spend more time on the app than is healthy. This could lead to the platform being deemed a violation of EU regulations aimed at protecting children from online exploitation.

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TikTok’s Legal Struggles in the United States

TikTok is facing significant challenges in the United States. In March, the U.S. Congress overwhelmingly voted to either ban TikTok in the country or require an American company to buy it. President Joe Biden signed a bill that gives ByteDance up to nine months to sell TikTok, although the deadline could extend to 12 months.

In response, TikTok has filed a lawsuit against the U.S. government, claiming that a ban would violate constitutional rights, particularly the First Amendment’s protection of free speech. The court will hold the first hearing of this case in September, and the outcome could significantly affect TikTok’s operations in the U.S.

The Road Ahead for TikTok

With potential bans on the horizon in both Europe and the United States, TikTok’s future is increasingly uncertain. While the company has indicated its willingness to comply with regulatory changes, the ongoing concerns about its impact on children and its ties to China continue to fuel legal challenges. TikTok’s ability to navigate these complex legal landscapes will likely determine whether the app can continue to thrive in these major markets.

Conclusion

TikTok faces a challenging future as it grapples with legal battles in both Europe and the United States. The recent court ruling in Europe, which mandates compliance with the Digital Markets Act, sets the stage for stricter regulations, while concerns over the platform’s impact on children could lead to further scrutiny or even a potential ban. In the U.S., the app also faces the possibility of a ban or forced sale to an American company, adding to its uncertain outlook. Although TikTok has expressed a willingness to comply with regulations, its ability to navigate these legal challenges and address child protection issues will determine whether it can continue to thrive in these key markets. The outcome of these legal proceedings will have a significant impact on the future of digital platforms globally.