TikTok has lost a lawsuit seeking to be exempt from antitrust laws in Europe. The company has said it will comply with the ruling. In addition, TikTok’s future in the US remains uncertain, as it faces a potential ban in the US for violating child protection laws. The app faces potential bans in both the US and Europe.
In Europe, the app was deemed to have enough users to be subject to the Digital Markets Act (DMA). Parent company Bytedance challenged this in court, but the court rejected the challenge.
Bytedance could still appeal the decision, but no plans have been announced to do so. Instead, it said work has begun on DMA compliance.
However, even if the company complies with the DMA’s requirements, TikTok could still be banned for deliberately making it addictive for children. European Commission President Ursula von der Leyen said in May that she found TikTok “dangerous.”
One action the EU has deemed potentially illegal is offering vouchers to reward users for watching videos, which is likely an attempt to actively encourage children to use the app for longer than they would normally.
TikTok could also be banned in the US
In March, the US Congress voted overwhelmingly to either ban TikTok in the US or sell the app to an American-owned company. President Joe Biden signed a bill giving TikTok’s Chinese owner ByteDance up to nine months to sell to a US company, although that deadline could be extended to 12 months.
TikTok has sued the US government, arguing that the ban would be unconstitutional and interfere with its First Amendment right to free speech. The first hearing in the case is set for September.