The European Union has launched proceedings against ByteDance's TikTok, threatening to suspend its newly launched TikTok Lite rewards program over concerns that it may lead to addiction among users, particularly 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 commission expressed concern that TikTok Lite's "Task and Reward Program," which allows users to earn points for liking content or inviting friends to the app, had been launched "without prior diligent assessment of the risks it entails, in particular those related to the addictive effect of the platforms." The absence of effective age verification mechanisms on TikTok has raised fears that children may be at risk.
This marks the second formal proceedings the EU has launched against TikTok. In February, the EU announced an investigation into whether the social media company had broken rules relating to the protection of minors, advertising transparency, and the risk management of addictive design and harmful content.
"Under the Digital Services Act, online platforms have the responsibility to assess and address any potential risks their users may face," EU antitrust chief Margrethe Vestager said in a statement. "So, the Commission has opened a compliance case that urges TikTok to submit an assessment and provide more information on how it is protecting its users from potential risks on their platform."
TikTok Lite, launched in France and Spain this month, is a new app with functionality aimed at users aged 18 years and older. The app's rewards program allows users to earn points while performing certain tasks, such as watching videos or following creators, which can then be exchanged for rewards like gift cards or Amazon vouchers.
Under the terms of the EU's Digital Services Act, companies with more than 45 million average active users in the bloc are labeled as very large online platforms and must comply with stringent rules to fight illegal and harmful content on their platforms.
EU industry chief Thierry Breton expressed concern over the potential risks associated with TikTok Lite, stating, "Endless streams of short and fast-paced videos could be seen as fun, but also expose our children to risks of addiction, anxiety, depression, eating disorders, low attention spans. With our first DSA non-compliance case against TikTok still ongoing, the company has launched TikTok Lite which financially rewards extra screen time. We suspect TikTok 'Lite' could be as toxic and addictive as cigarettes 'light.'"
Breton added, "Unless TikTok provides compelling proof of its safety, which it has failed to do until now, we stand ready to trigger DSA interim measures including the suspension of TikTok Lite feature which we suspect could generate addiction."
The move comes days after the US 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 that measure as early as this week, as part of a vote on foreign aid to Israel and Ukraine.
A TikTok spokesperson expressed disappointment with the EU's decision, stating, "The TikTok Lite rewards hub is not available to under 18s, and there is a daily limit on video watch tasks. We will continue discussions with the Commission."
The European Commission has given TikTok 48 hours to defend its reward 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 could result in fines of up to 1% of TikTok's global annual revenue and "periodic penalties" of up to 5% of TikTok's average daily revenue. If the TikTok Lite features under investigation are determined to be violations of the DSA, TikTok could face further fines of up to 6% of its global annual revenue.
