The European Commission has set a deadline of Wednesday for TikTok to respond to its demands regarding the new TikTok Lite application. The investigation centers on the app’s rewards feature, which allows users to earn points for various actions on the platform. The Commission suspects that this feature may be addictive, especially for children.
If TikTok fails to provide satisfactory evidence of the security of the feature, the Commission threatens to ban the rewards program. The Digital Services Act enables the EU to fine companies for non-compliance, with TikTok facing a potential 1% fine if it does not provide the required information by the deadline.
TikTok Lite is an alternative version of the original app, designed for minimal resource usage and compatibility with low-power devices. However, the rewards feature remains in this version as well. Bytedance, TikTok’s parent company, has emphasized that it is not a Chinese company since it is registered in the Cayman Islands.
This investigation follows a previous probe into TikTok’s compliance with digital market regulations, particularly in relation to underage user protection. The company has stated that the rewards feature is not available to users under 18 and has daily limits on point-earning activities. The outcome of this investigation will determine whether TikTok Lite’s rewards program will be banned in Europe.
TikTok has been under scrutiny from regulators around the world due to concerns over data privacy and security. In particular, there have been fears that data collected by Chinese apps could be used by Beijing for espionage or other nefarious purposes.
In response to these concerns, several countries have imposed bans on Chinese apps such as WeChat and ByteDance’s popular video-sharing app Douyin (known as TikTok outside China). These bans have had a significant impact on both companies and their users.
The European Union has also taken action against Chinese apps, launching an investigation into ByteDance’s compliance with digital market regulations earlier this year. This investigation followed concerns about data privacy and security raised by member states such as France and Germany.
Despite these challenges, Bytedance has continued to expand its presence in Europe through its alternative version of TikTok, which is designed specifically for European markets.
However, this expansion may come at a cost if regulators continue their crackdown on Chinese apps. If ByteDance fails to comply with EU regulations or provide satisfactory evidence about its data practices, it could face significant fines or even bans from operating in Europe altogether.
As such, it will be important for Bytedance and other Chinese tech companies operating in Europe to demonstrate their commitment to protecting user privacy and complying with local regulations if they hope to continue growing their businesses here.
