AsianFin--The European Union opened proceedings against ByteDance's TikTok on Monday and issued a warning to potentially suspend its recently introduced TikTok Lite rewards program, which allows users to accumulate points for liking content or inviting friends to the app.
The European Commission announced that TikTok had 24 hours to provide a risk assessment report for TikTok Lite or face penalties. Additionally, the social media platform was granted until May 3 to supply further requested details.
The commission expressed concerns that TikTok Lite's "Task and Reward Program" had been launched "without prior diligent assessment of the risks it entails, in particular those related to the addictive effect of the platforms."
The EU highlighted the potential risk to children due to the suspected absence of effective age verification mechanisms on TikTok.
This investigation marks the second formal proceeding initiated by the EU against the social media company. In February, the EU announced an investigation into TikTok‘s suspected violation of rules regarding the protection of minors, advertising transparency, and the management of addictive design and harmful content.
"Under the Digital Services Act, online platforms have the responsibility to assess and address any potential risks their users may face," EU antitrust chief Margrethe Vestager said in a statement.
"So, the Commission has opened a compliance case that urges TikTok to submit an assessment and provide more information on how it is protecting its users from potential risks on their platform," she added.
TikTok Lite, a new application designed for users aged 18 and above, was launched in France and Spain this month.
Its rewards system enables users to accumulate points by completing various tasks like watching videos or following creators. These points are then redeemable for rewards such as gift cards or Amazon vouchers.
According to the EU's expansive Digital Services Act, companies with over 45 million average active users in the bloc are categorized as very large online platforms and must adhere to strict regulations aimed at combating illegal and harmful content on their platforms.
"Endless streams of short and fast-paced videos could be seen as fun, but also expose our children to risks of addiction, anxiety, depression, eating disorders, low attention spans," EU industry chief Thierry Breton said in a statement.
"With our first DSA non-compliance case against TikTok still ongoing, the company has launched TikTok Lite which financially rewards extra screen time. We suspect TikTok ‘Lite’ could be as toxic and addictive as cigarettes ‘light,’" Breton said.
"Unless TikTok provides compelling proof of its safety, which it has failed to do until now, we stand ready to trigger DSA interim measures including the suspension of TikTok Lite feature which we suspect could generate addiction," he added.