European Commission threatens to block TikTok Lite

Brussels – The EU versus TikTok. Today (April 22), the European Commission opened a second formal proceeding against the Chinese social platform. The EU wants to assess whether TikTok has violated the Digital Service Act (DSA), the regulation for online platforms. The opening of the proceeding stems from the launch in the French and Spanish markets of the TikTok Lite app, which allows users to earn small amounts of money (maximum 0.36 euros per day) by doing simple actions such as watching videos on the app.

The European Commission is accusing TikTok of failing to comply with the DSA by not submitting the risk assessment report when launching the new app. Specifically, the Commission is concerned that TikTok Lite’s “Activity and Rewards Program,” which allows users to earn points by performing certain activities on TikTok (such as watching videos, liking content, following creators, inviting friends to join) may stimulate addiction to the social. Once points are earned these can be exchanged for rewards such as Amazon vouchers or gift certificates through PayPal.

Of particular concern is the possibility that children are the ones most exposed to this risk. The European Commission had already opened an investigation against the Chinese app because it would not have mechanisms to verify the age of users who sign up. Given the sensitivity of the matter, the Commission preferred to block the “TikTok Lite” rewards program on the entire European market as a precautionary measure. Before formally adopting the suspension, TikTok has until April 24 to present arguments in its defence.

The Commission will now carry out an in-depth investigation as a matter of priority to see if  Articles 34 and 35 of the DSA requiring risk assessment have been violated. The European Commission had already asked, but received no response, for information from the Chinese app regarding user safety by April 17, 2024. TikTok now has until April 23 to submit the risk assessment report to the Commission and until May 3 to provide all other requested information.

In the event that TikTok fails to respond to the Commission’s request for information within the specified time limit, it may incur penalties of up to 1 per cent of total annual income and periodic penalties of up to 5 per cent of the provider’s average daily income.

“We suspect that TikTok Lite may be as toxic and addictive as ‘light’ cigarettes,” Thierry Breton, European Commissioner for Internal Market and Services, said in a note, adding also, “Unless TikTok provides convincing evidence of its safety, which it has failed to do so far, we are prepared to suspend the application. We will spare no effort to protect our children.” Margrethe Vestager, competition commissioner, also agreed and said: “Under the Digital Services Act, online platforms have a responsibility to assess any risks their users may face.”

https://twitter.com/ThierryBreton/status/1782414979968139392