The European Commission has hailed its first major victory under new stringent digital rules designed to crack down on tech giants after TikTok has scrapped the “addictive” TikTok Lite Rewards programme, agreeing to permanently withdraw the scheme from the EU market.
The Digital Services Act and Digital Markets Act form a single set of rules that apply across the whole EU. They have two main goals to create a safer digital space in which the fundamental rights of all users of digital services are protected; and to establish a level playing field to foster innovation, growth, and competitiveness, both in the European Single Market and globally.
Following its launch in Spain and France in April 2024, the Commission expressed concerns regarding the TikTok Lite Rewards programme, which allowed users to earn points while performing certain ‘Tasks’ on TikTok Lite, such as watching videos, liking content, following creators, inviting friends to join TikTok, and so on.
At the time, internal market commissioner Thierry Breton branded the service “toxic” and claimed it could be as “addictive as cigarettes”.
He added: “Our children are not guinea pigs for social media. The law ensures the safety of our EU online space.”
The main objection, under the DSA, was the TikTok Lite Rewards programme had been launched without a prior diligent assessment of the risks it entailed, particularly in relation to the addictive effect of the Rewards programme, and without taking effective risk mitigating measures.
Brussels insisted the addictive nature of the rewards programme could potentially have negative effects on the physical and mental health of users. This, Commission chiefs argued, was of particular concern for minors, who may have a heightened sensitivity to such features.
Under the Digital Services Act, so-called “Very Large Online Platforms” are required to perform a risk assessment and submit a report to the Commission’s services prior to launching any new functionalities that are likely to have a critical impact on systemic risks. They also have to adopt effective mitigating measures to address identified risks.
As TikTok failed to provide a risk assessment report in relation to the launch of TikTok Lite, the Commission adopted a decision on April 22 to initiate formal proceedings against the company and warned TikTok of its intention to suspend the TikTok Lite Rewards programme in the EU.
Two days later, TikTok’s pre-empted any such action by suspending TikTok Lite Rewards in the EU.
Now TikTok has made a commitment to withdraw the TikTok Lite Rewards programme from the EU, permanently, as well as not to launch any other programme which would circumvent the withdrawal.
And, while the decision does not cover the UK post-Brexit, British data protection laws still follow those in the EU, meaning TikTok would be unlikely to launch the scheme in this country.
The decision makes these commitments legally binding, meaning that any breach of the commitments would immediately amount to a breach of the DMA and could therefore lead to fines. With this decision, the Commission is also closing the formal proceedings opened against TikTok on April 22.
This is the first case the Commission has closed under the DSA, 105 days after the opening of the proceedings and marks the first time that the Commission has accepted commitments from a designated online platform against which it had opened formal proceedings under the DSA.
The Commission said it will now “carefully monitor TikTok’s compliance” with the binding commitments the platform has offered under article 71 of the DSA, as well as with its other obligations under the DSA.
The Commission’s first formal proceedings against TikTok, which were launched on February 19, remain open and the investigation continues.
Currently there are formal proceedings open under the DSA against X (from December 2023), TikTok (February 2024), AliExpress (March 2024), and Meta (April and May 2024).
Margrethe Vestager, executive vice-president for a Europe Fit for the Digital Age, said: “The safety and well-being of social media users need to be a number one priority. Design features on platforms with addictive effects put the well-being of their users at risk.
“That’s why we have made TikTok’s commitments under the DSA legally binding. We will carefully monitor TikTok’s compliance. This decision also sends a clear message to the entire social media industry.”
Breton added: “The available brain time of young Europeans is not a currency for social media – and it never will be. We have obtained the permanent withdrawal of TikTok Lite Rewards programme, which could have had very addictive consequences. The DSA is in full swing.”
In response, TikTok said: “We always seek to engage constructively with the European Commission and other regulators. TikTok is pleased to have reached an amicable resolution.”
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