EU Threatens TikTok with Suspension Over Virtual Rewards in Lite App

The European Union has issued a stern warning to TikTok, demanding that the social media platform address concerns over the virtual rewards feature in its 'Lite' app or face potential suspension. The EU's digital commissioner, Thierry Breton, described the rewards feature as "toxic" and "potentially as addictive as cigarettes", especially for children.

TikTok Lite, recently launched in France and Spain, includes a reward program where users earn points for engaging in specific tasks on the platform. However, EU officials fear this feature could turn users, particularly minors, into addicts who can't stop using the app. The EU has given TikTok a 24-hour deadline to provide a risk assessment for the new Lite service and until Wednesday to argue its case.

If TikTok fails to satisfactorily address the EU's concerns and provide compelling evidence that child safety is ensured, the bloc has threatened to suspend the TikTok Lite app. The EU is prepared to use its new Digital Services Act powers to suspend the TikTok Lite reward program if the company does not offer sufficient proof of safety measures. This marks the first time the EU is considering using these enforcement powers against a social media platform.

Why this matters: The EU's ultimatum to TikTok highlights the growing scrutiny and regulatory pressure on social media platforms to prioritize user safety and well-being, especially for vulnerable groups like children. The outcome of this case could set a precedent for how the EU wields its new Digital Services Act powers to hold tech giants accountable.

Under the Digital Services Act, TikTok could face massive fines for failing to provide requested information about TikTok Lite, including up to 1% of its global annual revenue for not submitting the risk assessment report and up to 6% of its global annual revenue if the reward feature is determined to be a violation. The EU is also conducting an ongoing investigation into the main TikTok app's compliance with the Digital Services Act, examining whether it is doing enough to curb "systemic risks" from its design and algorithmic systems.

Key Takeaways

• EU warns TikTok over "toxic" virtual rewards feature in TikTok Lite app
• EU gives TikTok 24 hours to assess risks, until Wed to argue its case
• EU threatens to suspend TikTok Lite if safety concerns not addressed
• Outcome could set precedent for EU's new Digital Services Act powers
• TikTok faces massive fines for non-compliance under Digital Services Act