ByteDance’s TikTok to Withdraw Rewards Program to Comply with EU Digital Laws

ByteDance’s TikTok has agreed to permanently withdraw its TikTok Lite rewards program from the European Union to comply with the bloc’s Digital Services Act (DSA), the European Commission said on Monday.

TikTok Lite features a “Reward Programme” that allows users to earn points by performing certain tasks on the platform, such as watching videos, liking content, following creators, or inviting friends to join. However, the program has come under scrutiny from the EU due to concerns about its potential impact on children and users’ mental health.

In April, the EU demanded an immediate risk assessment from TikTok regarding the app, shortly after its launch in France and Spain, according to Reuters. The concerns prompted the EU to invoke the DSA, which requires large online platforms to report potential risks of new functionalities before they are launched and to adopt effective measures to address these risks.

Per Reuters, the European Commission stated that TikTok has now made legally binding commitments to withdraw the rewards program from the EU and to not introduce any other similar program that would bypass this decision. The commission emphasized that any breach of these commitments would constitute a violation of the DSA and could result in fines.

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Furthermore, the European Commission revealed that an investigation, opened in February, into whether TikTok breached online content rules aimed at protecting children and ensuring transparent advertising is still ongoing. This investigation puts the social media platform at risk of significant financial penalties.

“Any breach of the commitments would immediately amount to a breach of the DSA and could therefore lead to fines,” the commission said, highlighting the serious implications of non-compliance.

As TikTok navigates these regulatory challenges, its commitment to adhere to EU laws remains under close observation, with potential repercussions for the platform’s operations within the European market.

Source: Reuters