TikTok is facing the dubious honour of being the first tech company to have a service banned across the European Union following claims that TikTok Lite – which rewards users for watching clips – is “toxic”.
The European Commission has given the Chinese-owned video-sharing platform until tomorrow (Wednesday) to “bring arguments in its defence which the commission will carefully assess” before it takes a final decision on enforcement steps.
If the ban goes ahead, it would be the first time the EU has imposed sanctions since its landmark Digital Markets Act came into force last August for a number of large platforms. It was rolled out to other platforms in May 2024.
The new watch-and-get-rewarded app offers users prizes such as Amazon vouchers, gift cards via PayPal or TikTok’s Coins currency for points earned through “tasks”, which include watching videos, liking content, following creators or inviting friends to join.
It was launched in France and Spain this month despite an ongoing DSA investigation into the company launched in February over the safeguarding of children. The app is not available in the UK.
Internal market commissioner Thierry Breton told reporters that TikTok Lite “could be as toxic and addictive as cigarettes” and “comes with considerable risk for our children: addiction, anxiety, depression, eating disorders, low attention spans”.
He insisted said the platform had “failed to prove” that TikTok Lite had complied with obligations under the Act and the commission was “sparing no effort to protect” children.
The Commission said the reward feature could be suspended in the bloc if TikTok did not provide a satisfactory response to regulators’ concerns about the impact on users’ mental health.
TikTok was given a 24-hour deadline last week to provide a risk assessment over the new Lite new service amid concerns it could encourage children to become hooked on watching videos. On Monday the Commission said it had not received satisfactory answers from TikTok.
In a statement, the Commission said: “While this first case is ongoing, TikTok chose to launch TikTok Lite, which under the laudable promise of letting you watch videos … creates financial incentives for spending more time on your phone.”
Breton wrote on X: “Unless TikTok provides compelling proof of safety, which it has failed to do now, we stand ready to trigger interim measures including the suspension of the TikTok Lite ‘reward programme’.”
Alphabet, Amazon, Apple, Meta, and Microsoft are already under investigation over potential breaches of the DMA, with Breton insisting they will face heavy fines if they are found to be in flouting the regulations.
In case of an infringement, the Commission can impose fines up to 10% of the company’s total worldwide turnover. Such fines can go up to 20% in cases of repeated infringement.
Moreover, in the case of systematic infringements, the Commission may also adopt additional measures, including the forced sale of a business or parts of it, or banning firms from acquisitions of additional services related to the systemic non-compliance.
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