New app with reward function: EU initiates proceedings against TikTok

From the EU’s perspective, the video platform TikTok is not doing enough to protect the mental health of underage users. The Commission initiated proceedings over the rewards function of a new app.

Inadequately protected data or problems with the protection of minors: The video platform TikTok has been a thorn in the side of the EU for a long time. The EU Commission is now taking action against the Chinese company again and has opened proceedings due to the “risk of serious damage to the mental health of users”. The Commission announced that it will be examined whether a reward function contained in the new app TikTok lite violates EU rules.

The video platform introduced TikTok lite in April; in Europe, the app is currently available in France and Spain. The version contains a points system: Anyone who registers, watches several hours of videos, rates content positively or invites friends to TikTok will be rewarded with digital coins. The points can be exchanged for small amounts in the form of vouchers, for example for the online retailer Amazon.

One day for a reaction

This can be addictive and is particularly worrying for children, as it is not clear that the age of users is being effectively verified. The commission criticized the fact that the company had released the version of the app without first assessing the associated risks in a report.

TikTok now has one day to respond to the allegations from Brussels and submit a risk report, otherwise it faces daily fines. For example, according to the commission, TikTok could face fines of up to one percent of its total annual revenue or global sales. From Thursday, the EU Commission could also block the controversial function; TikTok would then only be able to bring the app onto the EU market without the points system.

Brussels is ready to impose “measures including the suspension of TikTok Lite functions,” said EU Internal Market Commissioner Thierry Breton.

Already procedures and Million dollar fine against TikTok

Online services such as TikTok, Instagram and Facebook are obliged under the EU Digital Services Act (DSA) to protect minors better than before and to delete content such as depictions of violence or misinformation more quickly.

Proceedings are already underway against TikTok due to possible addiction risks for minors on its standard platform. Last year, the EU also imposed a million-dollar fine on TikTok for violating European data protection law.