European Union Initiates New Investigation into TikTok Over Compliance Concerns
In a significant move, the European Union has launched a second formal investigation into TikTok, the popular video-sharing platform, citing potential violations of the Digital Services Act (DSA). Announced on Monday, the probe aims to scrutinize TikTok’s adherence to the EU’s stringent online governance and content moderation standards.
Amid these investigations, the European Commission is considering the imposition of provisional measures that could temporarily block access to the TikTok Lite app across EU member states. This action stems from concerns that the app may pose mental health risks to its users. While TikTok has been granted until April 24 to present its case against this interim suspension, the app remains operational for the time being.
This development underscores the EU’s proactive stance on regulating new and potentially risky digital services, ensuring that all platforms comply with established procedures.
Should the investigation confirm the alleged breaches, TikTok’s parent company, ByteDance, could face substantial penalties, with fines reaching up to 6% of its global annual turnover. This could represent a significant financial hit for the company, highlighting the EU’s commitment to enforcing its digital laws stringently.
NEW: Commission has now opened a formal investigation under the DSA into TikTok Lite
Focused on “negative effects on mental health, including minors’ mental health, especially as a result of the new feature stimulating addictive behavior” https://t.co/VGREN1XsWL https://t.co/e62wpsnHEl
— Finbarr Bermingham (@fbermingham) April 22, 2024
Ongoing Concerns with TikTok’s Compliance Lead to Multiple EU Investigations
The European Commission has not yet verified any breaches under the Digital Services Act (DSA), but this marks the second investigation into TikTok following the announcement of a comprehensive review of its compliance in February. Since December, the company has been scrutinized over various aspects of DSA adherence.
The EU’s inaugural investigation into TikTok encompassed several critical issues, including the protection of minors, advertising transparency, data accessibility for researchers, and the management of risks associated with addictive design and harmful content. This backdrop sets the stage for the latest investigation, which zeroes in on TikTok Lite. This version of the app, recently launched in France and Spain, introduces a “task and reward” system where users can earn points by engaging with content—such as watching or liking videos.
These points can be redeemed for rewards like Amazon gift cards or TikTok’s digital currency, which can be gifted to content creators. The Commission has expressed concerns that this feature may encourage addictive behaviors, particularly among young users, thereby impacting their mental health.
The European Union has specified that its second investigation into TikTok will concentrate on the platform’s compliance with the Digital Services Act (DSA) requirements. A key focus is on whether TikTok conducted and submitted a mandatory risk assessment report before launching its “Task and Reward Lite” program, particularly assessing potential negative impacts on mental health, including that of minors.
The EU’s concerns were heightened when ByteDance, TikTok’s parent company, failed to produce the requested risk assessment. This failure occurred despite the EU’s directive, issued last week, which gave ByteDance a 24-hour deadline to submit the document.
As one of the larger platforms subject to the DSA’s most stringent regulations, TikTok is required to proactively identify and mitigate systemic risks. This includes addressing designs that could potentially be addictive and detrimental to the mental health of its users.
The European Union has expressed concerns that ByteDance may have proceeded with the launch of TikTok Lite in two EU markets without completing the necessary pre-launch steps. Notably, the company failed to submit a required risk assessment by the April 18 deadline, leading the Commission to suspect a “prima facie infringement of the Digital Services Act (DSA).”
Under DSA regulations, failing to produce requested documents on time can result in fines. For this specific type of compliance failure, ByteDance could face penalties of up to 1% of its total annual income or worldwide turnover, with additional periodic fines potentially reaching up to 5% of its average daily income or worldwide annual turnover.
While the Commission has not yet decided on imposing fines for this documentation lapse, the situation remains under close review.
ByteDance has been contacted for comments regarding the EU’s enforcement actions but has not responded as of press time.
EU Internal Market Commissioner Thierry Breton emphasized the risks associated with TikTok’s business model, particularly for younger users. In a statement, he highlighted the potential for short, fast-paced videos to cause addiction, anxiety, depression, eating disorders, and reduced attention spans. “With our first DSA non-compliance case against TikTok still ongoing, the launch of TikTok Lite, which financially rewards extra screen time, is concerning,” Breton stated. He drew a parallel between TikTok Lite and ‘light’ cigarettes, suggesting both could be similarly harmful. “Unless TikTok demonstrates its safety, which it has yet to do, we are prepared to enforce interim DSA measures, including possibly suspending the TikTok Lite feature,” he added, stressing the EU’s commitment to protecting children from potential harm.