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As TikTok faces the possibility of a forced sale or ban in the U.S., the European Commission is also going after the company—for the second time in a year—opening formal proceedings over its launch of TikTok Lite in France and Spain.
It's the second investigation into TikTok under the Digital Services Act this year, following a probe into the protection of minors and addictive design in February.
"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," said Margrethe Vestager, executive vice president of the European Commission’s A Europe Fit for the Digital Age.
"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'."
The latest proceedings hinge on the fact that, under the DSA, firms designated as Very Large Online Platforms are required to submit a risk assessment report, including measures to mitigate any potential systemic risks, before they launch new functionalities.
And, says the Commission, it's concerned that TikTok Lite's Task and Reward Program, which allows users to earn points while performing certain tasks on TikTok such as watching videos, liking content, following creators and inviting friends to join TikTok hasn't had this risk assessment.
It's particularly concerned about the risks around the addictive effect of the platforms, and that there are no effective risk-mitigating measures—a particular concern for children, given the “suspected absence” of effective age verification mechanisms on TikTok.
"Under the Digital Services Act, online platforms have the responsibility to assess and address any potential risks their users may face," said Vestager.
"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."
The Commission had asked TikTok to provide the risk assessment report for TikTok Lite by April 18, along with information about the measures it has put in place to mitigate potential systemic risks of these new functionalities. TikTok, the Commission said, missed the deadline.
The company's been asked to submit the risk assessment report to the Commission Tuesday, and to provide the other information requested by May 3. If it doesn't, it could face fines up to 1% of its total annual income or worldwide turnover, as well as periodic penalties of up to 5% of average daily income or worldwide annual turnover.
The Commission also plans to suspend the TikTok Lite rewards program in the EU in the meantime.
"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," said Thierry Breton, commissioner for internal market. "We will spare no effort to protect our children."
TikTok says that only users over age 18 who have verified their age through methods such as submitting a selfie with a photo ID like a passport or driver’s license or through credit card authorizations can access watch tasks or redeem rewards on TikTok Lite.
"We are disappointed with this decision—the TikTok Lite rewards hub is not available to under 18s, and there is a daily limit on video watch tasks," says a company spokesperson. "We will continue discussions with the Commission."
