The European Commission (Commission) has raised concerns about TikTok Lite's new 'Task and Reward' feature on the grounds that it poses significant risks to children's mental well-being due to a lack of effective age verification measures. This has prompted the Commission to threaten a ban on the app under the Digital Services Act (DSA), a move aimed at safeguarding EU users from potential harm. For further information on the DSA click here.

TikTok has been designated as a “Very Large Online Platform” (VLOP) under the DSA and is subject to the full force of the DSA’s wide reaching obligations (which are exclusively enforced by the Commission), that include the most onerous obligations reserved for VLOPs or very large online search engines (VLOSE) due to their potential reach or influence in the EU (VLOPs/SEs are those with over 45 million active EU users). One such obligation requires TikTok to submit risk assessment reports for any features that could pose “systemic risks” to EU users prior to the deployment of such features and to implement reasonable, proportionate and effective mitigation measures. 

However, ByteDance, (TikTok’s China-based owner) failed to provide the EU with a mandatory risk assessment before launching TikTok Lite in Spain and France, which, coupled with concerns about the ease of bypassing age verification, has prompted the Commission to initiate a new DSA investigation into the company and it has sent TikTok a request for information (RFI), asking for more details on the risk assessment TikTok should have carried out before deploying TikTok Lite in the EU. A RFI is an investigatory act that does not prejudge potential further steps that the Commission may or may not decide to take and it can impose fines for incorrect, incomplete, or misleading information in response to a RFI. 

This RFI follows TikTok’s hefty fine of €345 million last year for breaking EU data protection laws in its handling of children’s accounts, including failing to shield underage users’ content from public view. On 19 February 2024, the Commission opened formal proceedings against TikTok to assess whether it may have breached the DSA in areas linked to the protection of minors, advertising transparency, data access for researchers and the risk management of addictive design and harmful content, which are ongoing. Serious infringements of the DSA carry serious consequences and for the most egregious breaches could lead to fines of 6% of global income or ultimately, the suspension of a platform’s operations across the EU. 

The new ‘Task and Reward’ feature in Tik Tok Lite incentivises users to complete various tasks on the platform, such as watching videos, liking content, and inviting friends, in exchange for points redeemable for rewards like Amazon vouchers and TikTok Coins. Despite only being accessible to users over 18, the Commission believes TikTok has not implemented effective age verification systems, a matter already under investigation.

Thierry Breton, the Commissioner responsible for the DSA, emphasised the potential dangers of exposing children to endless streams of fast-paced videos, suggesting they could lead to addiction, attention deficits and mental health issues. He likened TikTok Lite's allure to that of 'light' cigarettes, implying it could be just as harmful and addictive.

In response to these concerns, the Commission has threatened to suspend the TikTok Lite rewards program in the EU pending a safety assessment and gave TikTok until 24 April 2024 to present a defence. Unless TikTok can provide evidence that it has identified and appropriately mitigated the systemic risks associated with the reward feature, the Commission may invoke its arsenal of DSA enforcement powers against TikTok, such as adopting interim measures which TikTok must comply with to protect children from risk of harm. The Commission is now gathering more evidence about TikTok Lite.

This recent action is the latest in a growing number of RFIs and/or the opening of formal proceedings by the Commission into a number of VLOPs/SEs for alleged DSA infringements. The Commission is certainly not resting on its laurels when it comes to enforcement of the DSA against VLOPs. 

If you have any questions regarding the DSA such as whether you are in scope and if so, what you need to do to ensure compliance, please contact Mary Traynor or Bryony Long.