TikTok Lite: EU Concludes Investigation on Addictive Features as TikTok Agrees to Abandon Rewards System

The European Commission has concluded its examination of TikTok Lite’s rewards mechanism under the Digital Services Act (DSA), following TikTok’s agreement to permanently eliminate this feature within the EU territories.

Introduced in France and Spain, the “task and reward” feature of TikTok Lite rewarded users with points for engaging in activities such as viewing and liking videos, which could then be exchanged for Amazon vouchers. TikTok Lite is designed as a more bandwidth-efficient version of the main TikTok app, catering to markets with limited internet resources.

Further, TikTok has pledged not to introduce a similar feature by a different name or any equivalent substitute to avoid breaching this agreement, the Commission stated. While this agreement specifically addresses the rewards feature scrutinized by the EU, it does not impose a general prohibition against TikTok introducing any kind of rewards feature in the future.

Concerns were raised by the Commission in April, initiating the probe into the rewards feature due to potential negative impacts on young users’ mental health, fearing it could foster addictive behaviors.

Promptly after the Commission’s investigation commenced, TikTok voluntarily suspended the feature in the EU, facing potential immediate action by the Commission to discontinue the feature amid concerns over promoting excessive app usage.

A senior Commission official informed journalists that the outcome of this investigation was positively received, highlighting rapid results in safeguarding EU residents, particularly younger ones.

Although the settlement did not lead to a formal DSA breach finding against TikTok, thus avoiding penalties, the Commission warned that any failure by TikTok to adhere to its commitments could result in immediate sanctions, with the possibility of fines up to 6% of the company’s global annual revenue as per DSA regulations, without necessitating a new inquiry. This situation puts significant compliance pressure on TikTok.

TikTok’s adherence to its commitments will be closely monitored through established procedures and DSA powers, with assistance from member state authorities responsible for enforcing the regulation’s standards.

EU’s Internal Market Commissioner, Thierry Breton, commented, “The mental well-being of young Europeans is not a trading commodity for social media platforms. We’ve secured the permanent removal of the TikTok Lite Rewards feature, averting potential addictive risks. The DSA’s enforcement is clearly demonstrated here.”

TikTok’s spokesperson, Elliott Burton, stated to TechCrunch about the settlement, expressing satisfaction over reaching a mutual resolution with the Commission and the subsequent withdrawal of the TikTok Lite rewards program initially launched in France and Spain.

Though this particular case is resolved, the Commission is still conducting a broader investigation into TikTok’s main app, with a focus on its algorithm and recommendation engine, age-verification processes, and adherence to DSA transparency standards. This ongoing probe seeks to address concerns related to content recommendation practices and the protection of minors from inappropriate content.

For further details on how the DSA and its companion regulation, the Digital Markets Act (DMA), are influencing operations of Big Tech companies, revisit our previous reports.