On Aug. 5, the wildly popular short video streaming platform, TikTok, agreed to stop offering its TikTok Lite rewards program in the European Union (EU), in compliance with regulations set by the bloc.
The case was tried under the Digital Services Act (DSA), a law aimed at creating a safer online environment by targeting harmful content, misinformation, and illegal activities, while also protecting users’ rights.
The DSA dictates that large online platforms have to identify potential performance risks and ways to handle said risks before launch.
Following the case’s closure, TikTok agreed to “legally binding commitments” to remove the feature, while also not circumventing its commitment by releasing the feature under a different name, Reuters reported.
“Any breach of the commitments would immediately amount to a breach of the DSA and could therefore lead to fines,” the commission said.
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The TikTok Lite app — a data-light variant of the app meant for areas with slower internet speeds — features a “Tasks and Rewards” system, where users aged 18 and above could earn points through viewing or liking content, following creators or recommending friends to use the app.
Upon completing these tasks, users can redeem rewards like vouchers or TikTok coins, the latter being used to pay content creators.
First released in Thailand in 2018, the app was brought to France and Spain earlier this year. However, the rewards system had drawn ire from the EU following concerns of “its potential impact on children and users’ mental health.”
An investigation was launched in April under the European Commission — the EU’s executive branch — citing concerns surrounding mental health risks on users, particularly “the potential stimulation of addictive behavior.”
“The rewards programme, which may stimulate addictive behavior, could potentially have negative effects on the physical and mental health of users,” the commission said. “This is of particular concern for minors, who may have a heightened sensitivity to such features.”
TikTok agreed to temporarily suspend its rewards feature in the EU after the investigation was launched. It was also required to provide information about the steps it had taken to “mitigate such systematic risks.”
According to commission sources, Brussels worked hard on the case with regulators in France and Spain, in addition to Ireland where TikTok’s European headquarters is located.
However, the closure of the case does not mean TikTok is guilty of breaching the DSA. Thus, they will not be penalized. Yet, should the company fail to live up to its commitments, it could be slapped with huge fines of around six percent of its global turnover.
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Additional security risks
While the TikTok Lite rewards case has closed, another DSA investigation into TikTok remains open. This one involves potential breaches created by the TikTok app’s algorithm. It’s feared that the apps’ design could lead to “behavioral addictions” and “rabbit-hole effects” among children.
TikTok says that it would cooperate with “experts and industry stakeholders” to ensure safer measures, restricting access for users under 13.
Meanwhile, fellow Chinese-owned company, AliExpress, is also being investigated by Brussels’ digital regulators over whether it was doing enough to stop minors from viewing pornographic content via its online platform.
Fashion retailer Shein was recently declared a “very-large online platform,” which makes it a target for ongoing scrutiny. A report by Swiss advocacy group Public Eye claimed that workers at the company are still working 75 hours a week. South Korean authorities also found that Shein’s products contain toxic substances, even in children’s products.
