Breaking News: TikTok Lite's Rewards Feature Investigation Closed by European Commission
The European Commission has officially closed its investigation into TikTok Lite's rewards feature by accepting commitments from the social media giant to permanently withdraw the feature from the EU. This move comes after concerns were raised about the potential negative impact on the mental health of young users due to the addictive nature of the "task and reward" mechanism.
TikTok Lite, an alternative version of the popular app offered in select markets, allowed users to earn points for in-app activities and exchange them for Amazon vouchers. The Commission was worried that this feature could encourage excessive app usage and addictive behavior among users, especially minors.
In response to the investigation, TikTok has agreed not to reintroduce the rewards feature under a different name or in an equivalent form. The settlement does not prevent TikTok from launching rewards features in the future, but the company must adhere to strict guidelines to protect users, particularly young Europeans.
While TikTok has not been found in breach of the Digital Services Act (DSA) in this case, the Commission has warned that failure to comply with the commitments could result in significant fines of up to 6% of global annual turnover. This serves as a strong incentive for TikTok to prioritize user safety and compliance with regulations.
Moving forward, the Commission will closely monitor TikTok's compliance with the commitments and utilize DSA powers to ensure the protection of EU citizens, especially minors. This resolution marks a significant step in safeguarding the mental well-being of young users and upholding the principles of the DSA.
In a statement, EU Commissioner Thierry Breton emphasized the importance of protecting young Europeans from addictive online experiences and affirmed the Commission's commitment to enforcing the DSA. TikTok has expressed its cooperation with regulators and confirmed the withdrawal of the TikTok Lite rewards program in France and Spain.
While this case is now closed, the Commission continues to investigate other aspects of TikTok's operations, including concerns about its algorithm, age verification measures, and transparency requirements. The DSA and Digital Markets Act (DMA) are shaping the regulatory landscape for Big Tech platforms, emphasizing the need for accountability and user protection.
Stay informed on the latest developments in the tech industry and regulatory landscape by following our reporting on the impact of the DSA and DMA on Big Tech platforms.