TikTok is suspending its “TikTok Lite” rewards program in Europe after the European Commission launched an investigation into details of the effort to offer cash incentives for in-app activity.
In April, the European Commission asked TikTok to provide more information about the structure of its TikTok Lite program, which gives users points based on actions taken within the app.
As can be seen from this example, The speaker is here (in French) Let users know that they can earn points by finding and liking videos within the app.
TikTok launched the program on a limited basis in France and Spain before attracting the attention of EU officials, who expressed concern that the plan could violate the DSA.
TikTok shut down the program soon after and promised to scrap the initiative entirely to avoid penalties.
According to the EU Commission:
“TToday, the European Commission made commitments to permanently withdraw TikTok’s TikTok Lite Rewards program from binding jurisdiction in the EU. These commitments were put forward by TikTok to address concerns raised by the European Commission. Formal Procedure Restrictions on TikTok began on April 22nd. of Digital Services Act (DSA)
The Committee’s main concerns about the program The concern is that incentivising more frequent use of TikTok could lead to addiction to the app, especially among younger users, so any programmes that could increase systemic risk must be submitted to EU authorities for assessment before being implemented.
TikTok failed to do this, to If the Commission finds that a company has violated the DSA, 6% of the company’s worldwide revenues can be seized.
Rather than take that risk, TikTok chose to end the program entirely, effectively ending the committee’s investigation into the matter.
““Today’s decision makes these commitments legally binding, and any breach of them will immediately amount to a violation of the DSA and may lead to fines. The decision also brings to an end the European Commission’s formal legal proceedings against TikTok that were launched on 22 April.”
This also means that TikTok cannot operate a similar scheme without the commission’s approval.
This is a major win for the European Commission in terms of policing social media practices and strengthening protections for EU users. The investigation provides a framework for how the DSA process could work, and the threat of large fines is likely to act as a sufficient deterrent to restrict such programs that EU authorities believe could lead to harm.
While this is good for EU users, it could stifle some innovation on the platforms themselves.
Alternatively, it would increase accountability and transparency in such processes, which, at least in theory, should lead to better outcomes across the board.
