TikTok and the European Commission have arrived at a compromise.
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The regulator brought an investigation against the platform in April under the Digital Services Act ( DSA ); under the act’s stipulations, the company qualifies as a very large online provider ( VLOP ), which subjects it to the DSA’s strictest rules.
The European Commission had been looking into the potentially addictive qualities of an alternate version of the video app the company had launched in Spain and France, called TikTok Lite.
The watchdog took particular issue with what it called a “task and reward” system on the app, which incentivized users to watch or like videos, follow creators on the platform or invite friends onto the app, in return for points or rewards.
At the time, Thierry Breton, commissioner for internal market, said the app could have negative effects on young people’s mental health.
“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,” he said in a statement. “We suspect TikTok ‘Lite’ could be as toxic and addictive as cigarettes ‘light.’ 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. We will spare no effort to protect our children.”
It seems Breton and the Commission have gotten their way on TikTok Lite. The company has committed to removing the TikTok Lite rewards program from the EU permanently. It had suspended the program during the investigation, but won’t be able to reinstate it after signing the legally binding agreement with the EU.
The settlement also ensures TikTok cannot launch another program similar to the TikTok Lite rewards program under a different name.
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A spokesperson for TikTok said the company “is pleased to have reached an amicable resolution” with the regulators.
“We always seek to engage constructively with the European Commission and other regulators,” the spokesperson told Sourcing Journal via email.
Breton said the removal of the TikTok Lite program shows the power of the DSA, which went into effect in 2022 but became more widely enforceable in February.
“The available brain time of young Europeans is not a currency for social media—and it never will be. We have obtained the permanent withdrawal of TikTok Lite Rewards program, which could have had very addictive consequences. The DSA is in full swing,” he said in a statement.
Though this particular investigation has been settled, marking the first closure of a DSA investigation in the EU, the Commission continues to investigate the company over other concerns about its main app.
That investigation, launched in February, continues to look into TikTok’s potential addictive effects, as well as its safeguards for protecting minors. It also scrutinizes the platform’s transparency around advertising and the accessibility of data for researchers.
TikTok isn’t the only company the European Commission has taken a second look at; Shein’s designation as a VLOP earlier this year earned it a spot under the regulator’s watchful eye. In late May, Temu also got VLOP status after complaints from consumer organizations flagged that it had not been designated that way despite its large user base and potential violations of the DSA. The Commission asked both Shein and Temu to submit evidence that they had complied with certain provisions of the DSA in June.
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