The European Commission has concluded its Digital Services Act (DSA) investigation into TikTok Lite’s rewards feature, following TikTok’s commitment to permanently withdraw the mechanism from the EU.
The “task and reward” system in TikTok Lite, introduced earlier this year in France and Spain, allowed users to earn points for activities like watching and liking videos. These points could be exchanged for Amazon vouchers. TikTok Lite is a lower-bandwidth version of the main app, aimed at markets with limited internet access.
TikTok has also pledged not to reintroduce the feature under a different name or through an equivalent mechanism, according to the Commission. This settlement applies specifically to the TikTok Lite reward mechanism investigated by the EU but does not preclude TikTok from launching other rewards features in the future.
Concerns Over Addictive Behavior
The EU’s investigation, initiated in April, raised concerns that the design of the rewards mechanism could negatively impact young users’ mental health by encouraging addictive behaviors. TikTok had temporarily suspended the feature in the EU following the launch of the probe. The EU had considered using interim powers to shut down the feature during the investigation due to concerns about its potential to encourage excessive app usage.
A senior Commission official expressed satisfaction with the outcome, noting that it provides quick protection for EU citizens, including minors. While the settlement means the EC has not formally found TikTok in breach of the DSA, TikTok could face immediate sanctions if it fails to adhere to its commitments. The DSA allows for fines of up to 6% of global annual turnover without requiring a new investigation.
The Commission will monitor TikTok’s compliance with its commitments using existing processes and DSA powers, with assistance from Member State-level authorities responsible for overseeing regulation compliance.
Thierry Breton, the EU’s internal market commissioner, stated, “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.”
TikTok spokesperson Elliott Burton commented on the settlement, saying, “We always seek to engage constructively with the European Commission and other regulators. TikTok is pleased to have reached an amicable resolution and has now withdrawn the TikTok Lite rewards programme which was launched in France and Spain in April, which we had already voluntarily suspended.”
Ongoing Investigations
While this case has been closed, another broader investigation into TikTok’s main app, announced in February, continues. This investigation focuses on the app’s algorithm and concerns about “rabbit hole effects” where users are led to more extreme content.
The EU is also examining whether TikTok’s age-assurance measures are sufficient to protect children from inappropriate content and whether the platform complies with DSA transparency requirements.
Featured Image courtesy of KIRAN RIDLEY/AFP via Getty Images
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