ByteDance, the owner of TikTok, has announced it will stop its Lite rewards program in the European Union (EU) to comply with the European Commission’s requirements under the Digital Services Act (DSA), which came into force in August last year.
TikTok Lite rewards allowed users to earn “coins” for various actions on the platform, such as watching videos, liking, subscribing, or inviting friends. This not only encouraged user activity but also attracted new users, contributing to the platform’s growth.
Risk Assessment and Investigation
In April, the European Commission required TikTok to conduct a risk assessment of the launch of TikTok Lite in France and Spain. This was due to concerns about the service’s potential negative impact on children and the mental health of users. According to the law, large online platforms must disclose potential risks of new features before they are launched and take measures to address them. We’ll keep you updated on the latest developments.
The European Commission stated that TikTok has committed to ending its rewards program in the EU and not launching similar programs that would circumvent this decision. Failure to comply would breach the DSA and could result in significant fines, adds NIX Solutions.
Ongoing Investigation and Future Implications
Additionally, an investigation is ongoing into whether TikTok may have breached online content rules aimed at protecting children and ensuring transparency in advertising. The investigation, which began in February, could result in significant fines for the platform. TikTok’s future in the EU remains uncertain until the current investigations are completed, and potential fines could significantly impact the company’s policies and future strategy in the region.