On August 5, 2024, the European Commission (Commission) gave legal force to commitments made by online platform TikTok to permanently withdraw its TikTok Lite Rewards program from the European Union (EU). This concludes formal proceedings opened by the Commission under the EU’s Digital Services Act (DSA) against TikTok. TikTok Lite is a data-light version of the TikTok app that includes a “Tasks and Rewards” section allowing users to earn points with monetary value by completing tasks on the app.
Background
Under the DSA, which entered into force November 16, 2022, platforms with an average number of active monthly users of 45 million or more are designated as very large online platforms (VLOPs) and are supervised as such by the Commission. (Arts. 33, 65.) TikTok was designated as a VLOP in 2023. VLOPs must assess and mitigate any systemic risks stemming from the design or functioning of their services. (DSA, art. 34, para. 1, art. 35, para. 1.). They must also protect the privacy, safety, and security of minors using their services. (Art. 28, para. 1.)
In March 2024, TikTok launched TikTok Lite in France and Spain. The app allowed users to earn points for performing tasks, such as watching videos or liking content. The points could then be exchanged for third party vouchers or in-app currency used to pay creators. The Commission was concerned that the program might stimulate addictive behaviors and have negative effects on users’ physical and mental health, particularly in minors who may have a heightened sensitivity to such features. After TikTok deployed the program without first submitting a mandatory risk assessment, the Commission opened formal proceedings against the platform under article 66 of the DSA on April 22, 2024. Two days later, TikTok voluntarily suspended the program.
Commission’s Decision
Article 71, paragraph 1 of the DSA provides that the Commission may resolve proceedings against a VLOP by accepting its commitments to comply with the DSA and issuing a decision making the commitments legally binding. In this case, the Commission gave legal force to TikTok’s commitment to withdraw the Lite Rewards Program from the EU and to not launch any other program that would circumvent the withdrawal.
Should TikTok violate its commitments, the Commission could impose fines of up to 6% of TikTok’s total worldwide annual turnover or periodic penalty payments of up to 5% of the average daily income or annual worldwide turnover per day. (Arts. 74, 76.)
The case is the first one closed under the DSA. Another case against TikTok remains open, in addition to formal proceedings open against VLOPs X, AliExpress, and Meta, among others.
Prepared by Lena Bleckmann, Law Library Intern, under the supervision of Jenny Gesley, Foreign Law Specialist
Law Library of Congress, September 19, 2024
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