EU threatens TikTok with fines and suspension over addictive features in new TikTok Lite app: TECH: Business Times

The European Union has initiated proceedings against ByteDance’s TikTok, threatening to suspend the recently launched TikTok Lite rewards program over concerns it could lead to addiction among users, especially children. The European Commission, the EU’s executive arm, has given TikTok 24 hours to provide a risk assessment report for TikTok Lite or face fines, and until May 3 to provide further requested information.

The committee expressed concern that TikTok Lite’s ‘Task and Reward Program’, which allows users to earn points by liking content or inviting friends to the app, had been launched ‘without prior careful assessment of the risks posed this entails, in particular the risks associated with the app. addictive effect of the platforms.” The lack of effective age verification mechanisms on TikTok has raised fears that children are at risk.

This marks the second formal procedure the EU has initiated against TikTok. In February, the EU announced an investigation into whether the social media company had broken rules on the protection of minors, advertising transparency and the risk management of addictive design and harmful content.

“Under the Digital Services Act, online platforms have a responsibility to assess and address any risks their users may face,” EU antitrust chief Margrethe Vestager said in a statement. “So the Commission has opened a compliance case urging TikTok to submit an assessment and provide more information on how it protects its users from potential risks on their platform.”

TikTok Lite, launched this month in France and Spain, is a new app with functionality aimed at users aged 18 and over. The app’s rewards program allows users to earn points while completing certain tasks, such as watching videos or following creators, which can then be redeemed for rewards such as gift cards or Amazon vouchers.

Under the terms of the EU’s Digital Services Act, companies with an average of more than 45 million active users in the bloc are labeled as very large online platforms and must comply with strict rules to combat illegal and harmful content on their platforms.

EU industry chief Thierry Breton expressed concern about the potential risks associated with TikTok Lite, stating: “Endless streams of short and fast videos may be seen as fun, but they also expose our children to risks of addiction, anxiety, depression and eating disorders . , low attention span. With our first DSA case against TikTok still ongoing, the company has launched TikTok Lite, which financially rewards extra screen time. We suspect TikTok ‘Lite’ could be just as toxic and addictive as ‘light’ cigarettes.

Breton added: “Unless TikTok provides compelling evidence of its safety, which it has so far failed to do, we stand ready to institute DSA interim measures, including the suspension of the TikTok Lite feature which we suspect could cause this addiction.”

The move comes days after the U.S. House of Representatives passed legislation that could ultimately ban TikTok from the United States over national security concerns. The US Senate is expected to take up the measure as early as this week, as part of a vote on foreign aid to Israel and Ukraine.

A TikTok spokesperson expressed disappointment at the EU’s decision, stating: “The TikTok Lite rewards hub is not available to under-18s and there is a daily limit on video viewing. We will continue discussions with the Commission continue.”

The European Commission has given TikTok 48 hours to defend its rewards program to officials, after which the company could be ordered to suspend the rewards feature in TikTok Lite as an urgent temporary measure. Failure to provide the requested information may result in fines of up to 1% of TikTok’s global annual revenue and “periodic fines” of up to 5% of TikTok’s average daily revenue. If the TikTok Lite features under investigation are found to violate the DSA, TikTok could face further fines of up to 6% of its global annual revenue.

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