European regulators are intensifying their scrutiny of TikTok, with the threat of hefty fines and potential suspension looming over the popular social media platform’s new spinoff app, TikTok Lite. The European Union (EU) has raised concerns about the addictive nature of certain features within TikTok Lite, sparking fears of harm to users’ mental health.
TikTok Lite, launched this month as a less data-intensive version of TikTok’s main app, includes a rewards system that incentivizes users with cash for engaging with content and app features. However, EU officials fear that this feature could lead to addictive behavior among users, particularly among younger demographics.
The EU’s warnings come as part of its broader inquiry into TikTok under the Digital Services Act (DSA), marking the second major probe into the platform’s practices. This move underscores the EU’s commitment to protecting minors and addressing potential harms associated with online platforms.
In parallel, the United States House of Representatives has passed legislation targeting TikTok over national security concerns, indicating growing international scrutiny of the platform’s operations.
TikTok has been given a 48-hour window to defend its reward program to EU officials. Failure to do so could result in the suspension of the rewards feature in TikTok Lite as an urgent temporary measure. Additionally, TikTok faces fines for failing to provide requested information about TikTok Lite, including risk assessment and mitigation reports.
The consequences for TikTok could be significant. Failure to submit the required information could lead to fines of up to 1% of TikTok’s global annual revenue, with further penalties of up to 5% of daily revenue for non-compliance. Moreover, if the features under investigation are found to violate the DSA, TikTok could face additional fines of up to 6% of its global annual revenue.
These actions by the EU represent a departure from previous regulatory approaches. The use of procedural tools under the DSA indicates the seriousness of the concerns surrounding TikTok Lite’s compliance with EU regulations.
The EU’s stance reflects a broader trend of regulatory scrutiny faced by social media platforms worldwide. As concerns mount over issues such as data privacy, misinformation, and the impact on mental health, regulators are increasingly taking proactive measures to hold platforms accountable for their practices.
In response to the EU’s warnings, TikTok expressed disappointment with the decision. The company stressed that the TikTok Lite rewards hub is inaccessible to users under 18, and there are daily restrictions on video viewing tasks. TikTok is dedicated to ongoing dialogues with the EU Commission to resolve regulatory concerns.
The outcome of the EU’s inquiry into TikTok Lite could have far-reaching implications for the platform’s operations in Europe and beyond. If TikTok fails to satisfy EU regulators’ demands, it could face significant financial penalties and a temporary suspension of key features.
For now, all eyes are on TikTok as it navigates this latest regulatory challenge. As the platform grapples with mounting pressure from regulators on both sides of the Atlantic, its ability to address concerns about user safety and well-being will be closely scrutinized in the days and weeks to come.
