The European Commission has opened a formal investigation into TikTok’s launch of TikTok Lite in France and Spain.
This is the second such investigation against the popular social media platform in recent months.
The Commission is concerned that TikTok may have violated the Digital Services Act (DSA) by failing to conduct a proper risk assessment before launching TikTok Lite. This assessment, required by the DSA, should have identified and mitigated potential risks associated with the platform, particularly those related to addiction and user safety.
The European Commission’s investigation focuses on three key areas related to the social platform’s launch of TikTok Lite with its “Task and Reward Program.” Firstly, the Commission wants to determine if TikTok failed to fulfil its obligation under the DSA.
This obligation requires platforms to conduct a risk assessment and submit a report before launching any new features that could impact potential risks. In this case, the concern is that TikTok didn’t properly assess the risks associated with the “Task and Reward Program” on TikTok Lite.
Secondly, the investigation delves into the potential harm this program might cause, particularly to minors. The Commission is concerned that the program’s incentive structure, designed to encourage user engagement through rewards, could have addictive qualities. This raises worries about the potential negative impact on mental health, especially for younger users on the platform.
Finally, the investigation will examine the measures TikTok has taken, if any, to mitigate these potential risks. Of particular interest is whether TikTok has implemented sufficient safeguards considering the suspected shortcomings in their age verification mechanisms. If these mechanisms are inadequate, it could exacerbate the potential harm to young users.
If the investigation finds TikTok in violation of the DSA, the company could face fines of up to 1% of its global annual revenue. Additionally, the Commission may impose a temporary ban on the TikTok Lite reward program in the EU.
The Commission has requested that TikTok submit the missing risk assessment report and information about its mitigation measures by April 23rd and May 3rd, respectively. TikTok also has until April 24th to respond to the proposed suspension of the reward program.
The DSA, aimed at regulating online platforms, designated TikTok as a “Very Large Online Platform” in April 2023 due to its large user base within the EU. This designation comes with obligations related to risk management and user safety.
The current investigation builds upon an earlier proceeding launched in February 2024 which examined TikTok’s compliance with the DSA regarding data access, advertising transparency, and content moderation practices.
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