European Union: Announced Bytedance (TikTok)'s appeal against General Court ruling dismissing lawsuit against TikTok's designation as "gatekeeper" under the Digital Markets Act (T-1077/23) (Case C-627/24P)

On 26 September 2024, Bytedance brought forward an appeal against the judgment of the General Court made on 17 July 2024 in Bytedance vs Commission: Case C-627/24P. In its appeal, ByteDance (owner of TikTok) challenged the General Court's judgment, which upheld the European Commission's decision to designate ByteDance as a gatekeeper under the Digital Markets Act (DMA). The General Court had previously confirmed that ByteDance, via its social networking platform TikTok, met the DMA’s thresholds, including its EU user base and global market value, thereby justifying its classification as a gatekeeper. It found that TikTok acts as a significant gateway for business users to reach end consumers and that ByteDance holds an entrenched position in the market. Despite ByteDance’s arguments against its market impact and competitive position, the Court cited TikTok’s rapid user growth and engagement, particularly among younger demographics, as evidence of its strong market presence. ByteDance’s appeal contested this ruling on several grounds, arguing that the judgment misapplied legal tests and failed to allow ByteDance to adequately rebut the presumptions underpinning the gatekeeper designation. It further contended that the Court improperly linked high user numbers with market dominance and disregarded factors such as multi-homing and interoperability, which weaken the basis for the gatekeeper designation. ByteDance's appeal sought to have the European Court of Justice annulled the General Court's decision, overturn the Commission’s gatekeeper designation, and require the Commission to cover ByteDance’s legal costs.