The European Court of Justice on Wednesday rejected TikTok's appeal against the European Union's new digital rules.
The EU had introduced this law to prevent companies from engaging in practices that could hinder free competition. The law imposes strict regulations on institutions whose previous practices led to billions of dollars in fines and tax decisions by the European regulatory body.
The European Commission issued a decision targeting the Chinese platform and other platforms, mandating compliance with the Digital Markets Act (DMA), which forces tech giants to make significant changes to their operations.
The EU's intent with this law is to prevent these companies from engaging in actions that could be against free competition. It imposes strict regulations on institutions whose previous practices resulted in fines estimated in billions of dollars and tax decisions taken by the European oversight authority.
In the court's ruling, Vice-President Savvas Papasavvas stated, "The court rejects the appeal and orders ByteDance, the owner of TikTok, to pay the costs of the appeal proceedings."