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The European Commission has opened a second formal proceeding against TikTok under the Digital Services Act.
Under the Digital Services Legislation, certain very large online platforms are required to submit a risk assessment report, including measures to mitigate potential systemic risks, before launching new functionality that is likely to have a critical impact on their systemic risks.
The commission is concerned that TikTok Lite’s “Task and Reward Program,” which allows users to earn points for completing certain “tasks” on TikTok — such as watching videos, liking content, following creators , friend invitations to join TikTok, etc. — was launched without prior due assessment of the risks involved, in particular the risks related to the addictive effect of the platforms, and without effective risk mitigation measures in place, transmitted Plovdiv 24.
This is of particular concern to children, given the alleged lack of effective age verification mechanisms on TikTok. The lack of effective age verification mechanisms and the platforms’ alleged addiction are already under investigation in the first official proceedings against TikTok.
Therefore, the present investigation will focus on the following areas:
TikTok’s compliance with its obligation under the Digital Services Act to prepare and submit a risk assessment report prior to implementing features, in this case the Task and Reward Lite program, that are likely to have a critical impact on systemic risks. -especially the negative consequences for mental health, including the mental health of minors, especially as a result of the new feature stimulating addictive behaviour.
The measures taken by TikTok to reduce these risks.
If proven, these omissions would constitute breaches of Articles 34 and 35 of the Digital Services Act. The Commission will now conduct an in-depth investigation as a matter of priority. The opening of a formal proceeding does not predetermine its outcome.
In addition, the Commission sent TikTok a formal request for information based on a Commission decision obliging the company to provide a response to its request for information by 17 April 2024. In particular, the Commission asked TikTok to submit by 18 April the assessment report of risk for TikTok Lite, as well as information on the measures the platform has put in place to mitigate potential systemic risks from these new features. TikTok did not provide such a document within the deadline.
TikTok now has until April 23 to submit the risk assessment report to the Commission, and until May 3 to provide the other requested information.
In the event that TikTok does not respond to the Commission’s information request with a decision within the specified time limits, the Commission may impose fines of up to 1% of the provider’s total annual income or worldwide turnover and periodic penalties of up to 5% of the average daily supplier’s income or annual worldwide turnover.
Finally, given TikTok’s failure to present the risk assessment that should have been carried out prior to the launch of TikTok Lite, the Commission suspects a prima facie breach of the Digital Services Act and considers that there are risks of serious mental harm user health. The Commission therefore also notified TikTok of its intention to impose provisional measures consisting of the suspension of the TikTok Lite rewards program in the EU pending its safety assessment. It can be renewed if necessary and proportionately. Before formally accepting the suspension, TikTok was given until April 24 to present arguments in its defense, which the Commission will carefully evaluate.
next steps
The opening of a formal proceeding authorizes the Commission to take further enforcement actions, such as interim measures and non-compliance decisions. The Commission is also empowered to accept any commitment made by TikTok to take corrective action on the matters that are the subject of the proceeding.
The opening of formal proceedings relieves the digital services coordinators or any other competent authority of the EU Member States of their powers to supervise and enforce the Digital Services Act in relation to the alleged infringements.
General information
On 25 April 2023, the Commission designated TikTok as a very large online platform under the Digital Services Act based on TikTok’s user base reaching the threshold of 45 million average active users in the EU. From the end of August 2023, TikTok is subject to compliance obligations under the Digital Services Act.
TikTok Lite is a new app with a feature designed for users over the age of 18 called the “Tasks and Entitlements Program” that allows users to earn points while completing certain “tasks” on TikTok, such as watching videos , liking content, following creators, inviting friends to join TikTok, etc. These points can be exchanged for rewards such as Amazon vouchers, gift cards via PayPal or the TikTok coin currency that can be spent to push creators TikTok Lite launched in France and Spain in the last month.
Under the Digital Services Legislation, certain very large online platforms are required to submit a risk assessment report, including measures to mitigate potential systemic risks, before launching new functionality that is likely to have a critical impact on their systemic risks.
In February 2024, the Commission opened the first formal proceedings against TikTok to assess whether TikTok may have breached the Digital Services Act in areas related to the protection of minors, advertising transparency, researcher access to data, and and managing the risk of addictive design and harmful content. The investigation continues.
Two other formal proceedings are currently open under the Digital Services Act: one against X and one against AliExpress.
From 17 February, the Digital Services Act applies to all online intermediaries in the EU.
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