TikTok Takes on EU Regulators in Court, Fighting to Shed 'Gatekeeper' Label and Avoid Stringent Rules

By Ebrun. On May 19, TikTok, owned by ByteDance, is making a final effort at the European Court of Justice to overturn, through judicial channels, its designation as a 'gatekeeper' by the European Union under the Digital Markets Act (DMA). As a designated 'gatekeeper,' TikTok is currently subject to stricter regulatory standards—a move by local regulators aiming to curb the power of large tech companies.

Notably, this case is the first 'gatekeeper' designation appeal to be heard by the EU's highest court since the DMA took effect.

The EU's Digital Markets Act (DMA) is a core piece of antitrust legislation targeting large internet platforms. Its goal is to restrict 'super platforms' from leveraging their scale and ecosystem advantages to stifle competition, lock in users, and to create a fairer digital market environment for small and medium-sized enterprises. The act was formally passed in 2022 and began full enforcement in 2024. A central concept within it is the 'gatekeeper.'

A 'gatekeeper' can be understood as a super platform that controls key internet traffic gateways and can influence the relationships between businesses and users, such as app stores, social platforms, search engines, and operating systems. Once designated as a 'gatekeeper,' a platform is no longer considered just an ordinary company but rather an 'infrastructure-level platform' in the digital economy.

The DMA's criteria for 'gatekeeper' designation primarily fall into three categories:

having a significant impact on the EU market—achieving a certain scale in annual revenue and market valuation;

serving as a crucial gateway for businesses to reach consumers—possessing a large number of active end users and business users;

and having an entrenched and durable market position—not a temporary phenomenon but a long-term hold on core gateways.

One of the most well-known thresholds is having at least 45 million monthly active end users in the EU and at least 10,000 business users.

Focusing on TikTok, the platform was officially designated as a 'gatekeeper' under the DMA by EU authorities back in September 2023, joining the ranks of other giants including Google, Meta Platforms, Apple, Amazon, Microsoft, and Booking.com.

To remove this 'gatekeeper' label, ByteDance has previously launched multiple rounds of appeals.

In November 2023, ByteDance filed a lawsuit with the EU's General Court, requesting the annulment of this designation, marking TikTok's first formal legal challenge. However, in July 2024, the EU General Court dismissed its request, ruling that TikTok met the three core DMA criteria and upholding its 'gatekeeper' status. This became the first substantive ruling on a DMA 'gatekeeper' designation within the European court system.

Following the loss in the General Court, ByteDance did not cease its resistance. On September 26, 2024, it appealed to the EU's highest court, the Court of Justice, initiating a second round of appeals.

Now, in May 2026, the EU's top court has officially begun hearing the case. Reuters reported that this is the first time the EU's highest court is hearing a case related to the DMA's 'gatekeeper' rules, making it a landmark case in the history of the DMA.

In court, TikTok argued that the lower court made errors in its ruling, contending that it does not meet all three criteria for 'gatekeeper' status.

TikTok's lawyer, Bill Batchelor, told the 15-judge panel at the European Court of Justice: 'ByteDance has demonstrated that the vast majority of its market capitalization derives from its Asian business, which is unrelated to Europe, faces different competitive dynamics, and operates under distinct regulatory, linguistic, and cultural environments.'

He further stated that 70% to 80% of TikTok users concurrently use multiple other platforms, including Meta Platforms' Facebook and Instagram, Snap, and X, meaning users are not locked into TikTok's ecosystem—businesses can reach the same end users through several other platforms.

However, a lawyer for the European Commission countered TikTok's arguments in court: 'Even with a certain degree of multi-homing, lock-in effects can still occur. For instance, there may be specific user groups that rely on TikTok.'

The court is expected to rule within the coming months. Meta Platforms is also challenging its 'gatekeeper' designations for Messenger and Marketplace.

It should be noted that TikTok's strong resistance is not unique. Meta and Apple, also heavily constrained by the DMA, have engaged in multiple rounds of limited appeals in Europe, employing delaying tactics and seeking to narrow the scope of regulation and remove 'gatekeeper' charges for some of their subsidiary platforms.

The fierce resistance from these major platforms stems from the DMA's stringent requirements for large platforms designated as 'gatekeepers.'

According to the act, once labeled a 'gatekeeper,' a platform faces a series of very strict behavioral constraints. Five mandatory requirements are of particular concern.

First, it prohibits 'either-or' ecosystem lock-ins, weakening a platform's 'monopoly gateway' status.

Platforms cannot force businesses or users to use only their own services,

For example: they cannot force users or businesses to use only official payment tools; cannot default to prioritizing their own services; and cannot force users to link multiple product accounts.

Second, it prohibits using platform data to 'suppress businesses.'

Platforms are strictly forbidden from using third-party merchants' operational data to compete against those same merchants.

This is a rule specifically targeting e-commerce platforms. The EU has long suspected that e-commerce platforms use algorithms to identify hot-selling products and then launch their own private labels to compete with sellers. The DMA aims to eliminate this practice.

Third, it requires open ecosystem interoperability.

The act mandates that different software must be interoperable; users must be able to migrate data more easily; users must be able to uninstall pre-installed system apps; and third-party app stores must be allowed into the ecosystem.

Fourth, it prohibits 'self-preferencing.'

Platforms cannot default to promoting their own products in search results or recommendation systems.

Fifth, it tightens merger reviews.

Even small acquisitions must be reported to the EU if they involve potential competitors. The EU aims to prevent large platforms from solidifying their monopolies by 'buying out future competitors.'

Furthermore, the DMA imposes severe penalties on designated 'gatekeeper' platforms: fines for violations can reach up to 10% of global annual revenue; repeated violations can increase to 20%; and in severe cases, the EU can even mandate the breakup of business operations.

In this context, the importance of TikTok's current appeal lies in the fact that if ByteDance successfully overturns the 'gatekeeper' designation, it would not only win more operational freedom for itself but also narrow the scope of the DMA's application.

Conversely, if the EU prevails, it would mean the DMA's regulatory framework for large platforms will be further solidified, providing a stronger legal precedent for the EU's future regulation of AI platforms, super apps, and new traffic gateways.

Ebrun will continue to track and report on this development. To learn more about related information, please scan the QR code to follow the author on WeChat.