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TikTok loses in court: EU classifies platform under the Digital Markets Act. ByteDance can still appeal.
The European Commission has decided that TikTok falls under the Digital Markets Act (DMA). ByteDance, the Chinese operator of the platform, objected to this, as the classification entails far-reaching obligations. However, ByteDance failed before the second highest court in the EU. TikTok must therefore comply with the regulations of the DMA.
TikTok still has the option to object: What are the criteria of the Digital Markets Act?
ByteDance still has the opportunity to appeal against the decision and to appeal to the European Court of Justice (ECJ). However, so far no plans for a further appeal have been announced, Bloomberg. The DMA also affects other large companies like Apple, Amazon and Google. TikTok joins a list of technology giants that are subject to strict regulations.
The DMA takes effect when a company within the EU has a minimum turnover of €7.5 billion and more than 45 million monthly active users. In addition, more than 10,000 of the annual active business users must come from the EU. Companies that meet these criteria and act as gatekeeper must comply with the imposed rules.
Criticism of TikTok in the EU and the USA: Concerns about data protection and political influence
In the USA, a complete ban on TikTok is currently being discussed. According to NextG.tv already known that they have a Prefer to shut down TikTok in the US rather than sell the US part of the platformThe EU is also examining possible measures against the platform. An investigation is currently underway into the harmfulness of the short video platform for children and young people. TikTok sometimes offered its users vouchers as a reward for watching videos, which could be classified as an illegal practice. These rewards could entice children to spend more time on the app.
TikTok is not only under pressure because of its potential harmfulness to young people. There are also concerns about the political influence of the Chinese government and the potential leak of data from US and EU citizens to China. The platform continues to face significant allegations and investigations. As a countermeasure, TikTok has established a Youth Council to strengthen youth protection and mental health on the platform.
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