This decision follows an investigation by the European Commission, which raised issues about the scheme’s impact on young users’ mental health.

Earlier this year, the rewards mechanism, available in TikTok Lite, allowed users in France and Spain to earn points for engaging with in-app activities such as watching and liking videos. 

These points could be exchanged for Amazon vouchers. However, the European Commission halted the programme’s operation in April due to fears that it could lead to addictive behaviours among young people.

The European Union’s Digital Services Act (DSA) was part of this investigation, which has now concluded with TikTok withdrawing the feature permanently. This prevents TikTok from reintroducing the rewards system under a different name or launching an equivalent version. 

The resolution does not prohibit TikTok from exploring other reward features in the future, provided they adhere to EU regulations.

Thierry Breton, the EU’s internal market commissioner, commented on the importance of protecting young Europeans from harmful social media practices, stating, “The available brain time of young Europeans is not a currency for social media—and it never will be.”

TikTok’s spokesperson, Elliott Burton, confirmed the company’s cooperation with the European Commission, stating that TikTok is pleased to have reached an amicable resolution. The company had already voluntarily suspended the Lite Rewards programme following the investigation’s launch.

Although this particular case has been resolved, the European Commission continues to examine other aspects of TikTok’s operations. There are still ongoing issues about the main app’s algorithm, particularly the possibility of leading users towards more extreme content. The Commission is also assessing TikTok’s age-assurance measures and compliance with DSA transparency requirements.

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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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