Setback for TikTok as EU court adviser backs gatekeeper label

By Foo Yun Chee

BRUSSELS, Oct 15 (Reuters) - An adviser to Europe's highest court recommended on Thursday that TikTok lose its challenge to its "gatekeeper" status under landmark EU rules, backing regulators in a closely watched test of the bloc's efforts to curb Big Tech's power.

The case, the first involving the EU's Digital Markets Act (DMA) to reach the Court of Justice of the European Union, is being closely watched by technology companies seeking clues on whether Europe's courts will reinforce or limit regulators' efforts to boost competition and expand consumer choice.

ByteDance's TikTok is challenging its designation as a gatekeeper under the DMA, a status that subjects companies to a strict set of obligations aimed at preventing anti-competitive practices.

A lower tribunal rejected TikTok's challenge in 2024. Other companies designated as gatekeepers include Alphabet's Google, Meta Platforms, Apple, Amazon, Microsoft and Booking.com.

"The Court should dismiss the action brought by ByteDance (TikTok) against the decision of the Commission designating it as a gatekeeper under the Digital Markets Act," Advocate General Andrea Biondi said in his opinion.

He endorsed the lower court's ruling.

"The General Court did not make the errors of law alleged by ByteDance in rejecting those arguments. In particular, the fact that users also use other social networks does not, in itself, show that TikTok is not an important gateway," Biondi said.

The judges, who are expected to rule in the coming months, follow such non-binding opinions in around four out of five cases.

TikTok did not immediately respond to an emailed request for comment.

The DMA imposes a range of obligations on designated gatekeepers, with breaches potentially attracting fines of up to 10% of a company's annual global turnover.

Meta is also challenging the designation of gatekeeper for its Messenger and Marketplace services.

The case is C-627/24 P Bytedance v Commission.

(Reporting by Foo Yun Chee. Editing by Bart Meijer and Mark Potter)