European Union: Issued General Court ruling dismissing Bytedance (TikTok) lawsuit against its designation as "gatekeeper" under the Digital Markets Act (T-1077/23)

On 17 July 2024, the General Court issued its ruling dismissing the action brought by Bytedance Ltd against the European Commission's decision to designate it as a gatekeeper under the Digital Markets Act (DMA). The Court confirmed that Bytedance, through its social networking platform TikTok, met the quantitative thresholds established in the DMA, including its global market value and the number of European Union users, justifying its classification as a gatekeeper. The Court found the Commission's assessment that TikTok serves as a significant gateway for business users to reach end users and that Bytedance holds an entrenched and durable position in the market to be fully justified. Despite Bytedance's arguments challenging its impact on the internal market and its competitive position, the Court noted TikTok's rapid user growth and high engagement rates, particularly among young users, as evidence of its significant market presence. Furthermore, the Court dismissed Bytedance's claims of infringement of rights of defence and breach of the principle of equal treatment, affirming the lawfulness of the Commission's decision.