TikTok could face EU fines and a suspension
European officials are threatening TikTok with hefty fines and the compulsory suspension of elements of a new offshoot app introduced this month, which regulators claim contains addictive characteristics.
Highlights:
- The EU threatens TikTok with fines and possible suspension of TikTok Lite for addictive features.
- Investigation focuses on TikTok Lite's impact on users' mental health.
- TikTok is given 48 hours to defend the reward program or face suspension and fines under Digital Services Act.
The warnings are aimed at TikTok Lite, a less data-intensive version of TikTok's main app that includes a feature that pays users with cash for engaging with TikTok content and features.
EU officials are concerned that the function might be used to turn TikTok Lite users into addicts who can't stop using the app, and have labeled it as an "experiment" on unsuspecting EU nationals in Spain and France, where TikTok Lite has been made available.
The European Union announced on Monday its second major investigation into TikTok, focusing primarily on TikTok Lite and what officials said were substantial concerns to users' mental health.
The action comes just days after the US House of Representatives enacted legislation that could eventually ban TikTok in the United States due to national security concerns. The US Senate is scheduled to vote on the proposal as early as this week, as part of a debate over foreign aid to Israel and Ukraine.
The latest EU probe marks the first time Commission officials have used new measures provided to them by Europe's far-reaching new law regulating internet platforms, the Digital Services Act (DSA).
"This demonstrates that when we say minor protection is a priority under the DSA, we truly mean it," a European Commission official told reporters on Monday.
TikTok commits a legal challenge to a potential US app ban.
"We are disappointed with this decision," a TikTok spokeswoman stated in response to the EU's warning. "TikTok Lite rewards hub is not available to people under the age of 18, and video viewing tasks have a daily restriction. We will continue our negotiations with the Commission."
The European Commission announced Monday that TikTok has 48 hours to defend its reward programme to officials, after which TikTok may be asked to suspend the rewards function in TikTok Lite as an emergency temporary remedy. A decision to impose the suspension could be made as early as Thursday, commission officials informed reporters during a conference call. A suspension can last up to 60 days and be renewed multiple times.
In addition, TikTok could face a fine for failing to furnish the Commission with information about TikTok Lite, such as a risk assessment report and a separate report explaining efforts taken to mitigate such risks. Last Monday, EU officials made a request for information. It is distinct from another ongoing DSA inquiry of TikTok, which began in February and concerns the company's overall approach to user harms.
The failure to submit the TikTok Lite risk assessment by Tuesday and the risk mitigation report by May 3 could result in fines of up to 1% of TikTok's global annual sales and "periodic penalties" of up to 5% of TikTok's average daily revenue, according to the Commission.
TikTok might face extra fines of up to 6% of its global annual revenue if the TikTok Lite features under investigation by the Commission are found to constitute DSA violations.
Both the probable forced suspension and the potential fines are procedural measures that the European Commission has not previously utilized under the DSA, according to a commission official.
"So far, this has never been necessary because in all of our 40-plus requests for information, companies have always supplied the information," the official told reporters on the phone. “Generally speaking, we've never not received a reply to our request for information.”