ByteDance, the owner of TikTok, is facing scrutiny over its compliance with the European Union’s Digital Services Act (DSA). The DSA is a framework that requires larger platforms to address systemic risks, such as those related to youth mental health, in their online governance and content moderation.
The EU’s latest concerns revolve around TikTok Lite, a version of the app that recently launched in France and Spain. This version allows users over 18 to earn points for certain in-app activities, like liking content or following creators, which can be exchanged for gift cards or coins. The EU is worried about the potential addictive nature of this reward-linked engagement feature and its impact on young people’s mental health.
The European Commission has requested more information from TikTok regarding the risk assessment carried out before launching TikTok Lite in the EU. TikTok has 24 hours to provide the risk assessment and until April 26 to provide additional requested information before the Commission decides on next steps, which could include a formal investigation.
TikTok, as one of the platforms subject to strict DSA rules, faces penalties for non-compliance that could amount to 6% of its global annual turnover. The enforcement of the DSA is expected to influence platforms’ product design choices and may lead to significant fines for any compliance failures.
The Commission’s swift response to TikTok Lite’s launch indicates a heightened focus on potential issues of concern, especially regarding the protection of minors and addictive design. TikTok’s measures for age verification and reward program restrictions are under scrutiny, as well as the communication of these limits to users.
Concerns about TikTok’s platform design have been previously raised by consumer groups in Europe, leading to commitments from TikTok to improve transparency around digital coins and virtual gifts. However, the platform must do more to satisfy enforcers of the EU’s DSA compliance requirements, which are expected to fully take effect in late August 2023.
