EU opens probe of TikTok Lite, citing concerns about addictive design | TechCrunch

🌈 Abstract

The European Union has opened a second formal investigation into TikTok, suspecting the video-sharing platform of violating the EU's Digital Services Act (DSA). The investigation focuses on TikTok Lite, a version of the platform that includes a "task and reward" feature, which the EU believes could negatively impact the mental health of young users by stimulating addictive behavior. The EU has given TikTok until April 24 to argue against the measure, which could lead to the suspension of TikTok Lite in the EU. The investigation also raises concerns about the effectiveness of TikTok's age verification mechanisms.

🙋 Q&A

[01] The EU's investigation into TikTok

1. What are the key issues the EU is investigating regarding TikTok?

• The EU is investigating TikTok's compliance with the Digital Services Act (DSA), specifically:
  • The protection of minors
  • Advertising transparency
  • Data access for researchers
  • The risk management of addictive design and harmful content
• The latest investigation is focused on the TikTok Lite app and its "task and reward" feature, which the EU believes could negatively impact the mental health of young users by stimulating addictive behavior.
• The EU is also investigating the effectiveness of TikTok's age verification mechanisms.

2. What are the potential penalties TikTok could face if found in violation of the DSA?

• Penalties for confirmed violations of the DSA can reach up to 6% of TikTok's parent company ByteDance's global annual turnover.
• Additionally, TikTok could face smaller fines of up to 1% of its total annual income or worldwide turnover for failures to produce requested information on time, as well as periodic penalties up to 5% of its average daily income or worldwide annual turnover for this type of DSA compliance failure.

3. What is the EU's stance on the potential risks of the "task and reward" feature in TikTok Lite?

• The EU is concerned that the "task and reward" feature in TikTok Lite, which allows users to earn points for activities like watching or liking videos, could negatively impact the mental health of young users by "stimulating addictive behavior".
• The EU has given TikTok until April 24 to argue against the measure, which could lead to the suspension of TikTok Lite in the EU while the investigation is ongoing.

[02] TikTok's response and the EU's enforcement actions

1. How has TikTok responded to the EU's investigation?

• According to the article, a TikTok spokesperson said: "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. We will continue discussions with the Commission."

2. What enforcement actions has the EU taken so far?

• The EU has opened a second formal investigation into TikTok, suspecting the platform of violating the DSA.
• The EU has given TikTok until April 24 to argue against the measure to potentially suspend access to the TikTok Lite app in the EU.
• The EU has also raised specific concerns about the "suspected absence of effective age verification mechanisms on TikTok", which is an area the Commission's first TikTok investigation is looking into.