Meta and TikTok are challenging the new EU competition rules set to take effect in March before the European Court of Justice. The European Commission had identified 22 key digital platforms, including social media giants like Facebook and Instagram, messaging apps like WhatsApp, and search engines like Google, subjecting them to the Digital Markets Act (DMA). The DMA imposes strict regulations to curb anti-competitive practices in the tech sector, applying to major tech players such as Alphabet, Amazon, Apple, Meta, Microsoft, and Chinese company ByteDance (owner of TikTok). The rules include obligations and prohibitions overseen by the Commission, aiming to increase market competition. Violating companies may face fines up to 20% of their global revenue or even dismantlement in severe cases. Meta is contesting the inclusion of Messenger and Facebook Marketplace under the DMA, stating the legal action is to clarify specific legal points and doesn’t affect their commitment to comply. TikTok is also challenging its designation, arguing that being an emerging player challenges the dominance of major U.S. platforms. Both companies had until a specified date to file appeals. The European Commission declined to comment, but an anonymous European official expressed confidence that companies are working to comply despite legal challenges. The DMA aims to ensure interoperability with competing services and facilitate the removal of pre-installed applications, impacting companies like Apple by requiring the allowance of alternative app stores. The law also prohibits search engine result favoritism, addressing concerns raised against Google’s Google Shopping. Experts suggest legal challenges are expected as uncertainties surrounding the interpretation of the new legislation are clarified.
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