Meta and TikTok Challenge EU’s Digital Markets Act in Landmark Legal Appeals

Meta and TikTok are challenging the European Union’s new Digital Markets Act (DMA), which aims to make online markets more competitive. TikTok is appealing against its designation as a “gatekeeper” under the DMA, arguing that this could limit its growth and that it doesn’t meet the criteria for this designation. The company also believes it was not given a fair chance to present its evidence.

Meanwhile, Meta is challenging the EU’s decision to categorize Facebook’s Messenger and Marketplace as “core” services under the DMA. Meta argues that Messenger is a chat functionality of Facebook and not a separate app or service, and that Marketplace is a consumer product, not a business gateway.

Meta’s appeal seeks to clarify specific points of law regarding the DMA designations of Messenger and Marketplace. The company affirms its commitment to comply with the DMA while working constructively with the European Commission.

The DMA, set to be enforced in early 2024, requires large tech companies, mostly American, to make their services interoperable with competitors and to open their ecosystems to competing services. This could significantly impact how companies like Apple and Meta generate revenue in Europe.

Apple and Amazon, also under the DMA, might consider appealing, while Microsoft and Google, despite being affected, are not planning appeals. The DMA’s enforcement is seen as a major move to break the dominance of a few companies in the EU digital market, but some argue it could stifle innovation. Companies must comply with the DMA by March 6, 2024, although the ongoing appeals do not exempt them from compliance. The Luxembourg court is expected to make a quicker decision on these appeals compared to traditional antitrust cases.