ByteDance Given 24-Hour Deadline to Present EU with TikTok Lite DSA Risk Assessment

EU Probes TikTok’s Compliance with Digital Services Act Following Launch of Reward Program

The European Union is questioning ByteDance, the owner of TikTok, about its adherence to the Digital Services Act (DSA) in light of the recent launch of TikTok Lite in France and Spain. The DSA is a framework that requires larger online platforms to address systemic risks, such as the impact on youth mental health.

TikTok Lite’s Reward-Linked Engagement Feature Raises Concerns

TikTok Lite, which is currently available to users over 18 in France and Spain, allows users to earn points for activities like liking content or following new creators. These points can be exchanged for gift cards or “coins” that can be gifted to creators. The European Commission is concerned that this reward-linked engagement feature could potentially stimulate addictive behavior and negatively impact young people’s mental health.

Commission Requests Information from TikTok

In a press release, the Commission announced that it has asked TikTok to provide more information about the risk assessment it should have conducted before launching the new app in the EU. The Commission is also seeking details about the measures TikTok has implemented to mitigate systemic risks associated with the “Task and Reward Lite” program.

“This concerns the potential impact of the new ‘Task and Reward Lite’ programme on the protection of minors, as well as on the mental health of users, in particular in relation to the potential stimulation of addictive behaviour,” the Commission wrote.

TikTok has been given 24 hours to provide the risk assessment for TikTok Lite and until April 26 to provide other requested information. The Commission will then analyze TikTok’s response and determine the next steps, which may include opening a formal investigation.

TikTok’s Response and Ongoing Investigations

A TikTok spokesperson stated that the company has been in direct contact with the Commission regarding TikTok Lite and will respond to the request for information. ByteDance, as one of the larger online platforms subject to the strictest layer of DSA rules, could face penalties of up to 6% of its global annual turnover for any confirmed compliance failures.

TikTok is already under investigation in the EU for several DSA obligations, including the protection of minors and the risk management of addictive design and harmful content. The Commission’s swift intervention following the launch of TikTok Lite suggests that there may be additional issues of concern.

Age Verification and Reward Limitations

TikTok requires TikTok Lite users to verify that they are 18 or older to collect points through the app. The age verification process may involve submitting a selfie with a photo ID or credit card authorizations. The reward program also has limitations, such as a maximum daily reward equivalent to approximately €1 and a maximum daily video time limit for rewards of one hour.

Previous Concerns and Commitments

Consumer groups in Europe have previously raised concerns about various aspects of TikTok’s platform design, including its use of virtual currency to create engagement incentives. In June 2022, TikTok offered a series of commitments, including pledging to increase transparency around its digital coins and virtual gifts. However, the Commission’s oversight of TikTok’s approach to DSA compliance suggests that the platform may need to take further steps to satisfy enforcers of the updated EU Internet rulebook.