European officials have issued warnings to TikTok regarding its new spinoff app, TikTok Lite, which they allege contains addictive features. The app, launched this month, includes a rewards system that incentivizes users with cash for engaging with TikTok content and features.
The European Union has expressed concerns that these features could lead to addiction among users, particularly in Spain and France where TikTok Lite is available. The EU has initiated an inquiry into TikTok Lite under the Digital Services Act, citing risks to users' mental health.
This move by the EU follows a recent legislative action in the US House of Representatives that could potentially ban TikTok over national security concerns. The EU's investigation into TikTok Lite marks the first time officials are utilizing new powers granted under the Digital Services Act.
TikTok has responded to the EU warnings, stating that the rewards hub in TikTok Lite is not accessible to users under 18 and has daily limits on video watch tasks. The company is engaging in discussions with the Commission to address the concerns raised.
The European Commission has given TikTok a 48-hour window to defend its reward program, with a potential order to suspend the feature in TikTok Lite as a temporary measure. Failure to comply with the Commission's requests for information could result in fines of up to 1% of TikTok's global annual revenue.
If TikTok is found to be in violation of the Digital Services Act, additional fines of up to 6% of its global annual revenue could be imposed. The Commission has emphasized that these measures are procedural tools that have not been previously utilized under the DSA.
Commission officials have stressed the importance of companies providing requested information promptly to avoid penalties. TikTok's compliance with the EU's inquiries will determine the course of action moving forward.
