TikTok owner ByteDance is facing new questions about its compliance with the European Union's Digital Services Act (DSA). The DSA is an online governance and content moderation framework that imposes legal obligations on large platforms to reduce systemic risks in areas such as youth mental health.
The EU's latest concerns regarding TikTok's DSA compliance center on the launch of TikTok Lite. It's a version of the video-sharing app that recently launched in France and Spain (a “test launch,” according to TikTok) that allows users over 18 to enjoy certain apps, such as liking content or following new creators. Allow you to earn points for internal activities. . TikTok says these points can be exchanged for gift cards or “coins” that can be gifted to creators.
Reward-linked engagement features appear to have raised concerns in the EU about an addictive design that could have a negative impact on young people's mental health. The European Commission will oversee whether platforms comply with her DSA system risk requirements.
In a press release announcing the request for information (RFI), the European Commission said it had asked TikTok for details of the risk assessment it should have carried out before rolling out its new app in the EU.
“This concerns the potential impact of the new 'Tasks & Rewards Lite' program on the protection of minors and the mental health of users, in particular the potential stimulation of addictive behavior,” the report said. wrote, and added: We are also seeking information about the measures TikTok has put in place to mitigate these systemic risks.
TikTok has 24 hours to provide a risk assessment for TikTok Lite. Other requested information must be provided by April 26, after which the commission will analyze responses and assess next steps, including whether to launch a formal investigation, it said.
Asked for comment on the European Commission's RFI, a TikTok spokesperson said: “We are already in direct contact with the European Commission regarding this product and will respond to requests for information.”
ByteDance, which owns TikTok, is one of about 24 large online platforms subject to the most stringent tier of DSA rules, designed to reduce systemic risks that may be posed by the use of the platform. measures are required to be taken. Penalties for non-compliance can reach up to 6% of global annual revenue, and TikTok could face hefty fines if it is found to be in non-compliance.
The broader impact of pan-EU regulations is likely to extend to platforms' product design choices, and could force EU enforcement officials to reform their entire business models if they are found to have detrimental effects. I have authority.
TikTok has already been cited by the EU in relation to a number of DSA obligations, including in the areas of protection of minors and risk management of addictive designs and harmful content, after the European Commission announced a formal investigation in February. is being investigated. But the latest RFI suggests the EU is concerned that there are more issues to worry about.
It is particularly interesting that the European Commission intervened so quickly after the preliminary product release, as the TikTok Lite app appears to have been operational in the two markets for only a short period of time. The committee is said to have been launched this month. (And, for example, here's a Spanish-language YouTube video posted just a week ago about rewards features, in which video bloggers learn that programs are available to make money “just by watching videos.”) (On some Android devices so far).
It is unclear whether TikTok conducted a DSA risk assessment of the new rewards program before launching TikTok Lite in the two EU markets. A TikTok spokesperson did not respond to inquiries regarding this matter. However, the regulation's focus on systemic risk essentially requires such measures for features deemed attractive to minors.
TikTok said TikTok Lite users must confirm they are 18 years or older to collect points through use of the app. Asked about the robustness of the age verification technology the company uses, a company spokesperson said the process involved involves “submitting a selfie with a photo ID (such as a passport or driver's license). , credit card verification, etc.”
Another limitation of the rewards program highlighted by TikTok is a reward cap equal to “approximately” 1 euro per day. Also, in the perks, he said that he has a maximum video time limit of one hour per day. That means he'll probably only earn points for watching an hour of video, and no more points for the rest of the day.
How clearly such restrictions are communicated to TikTok Lite users may be one area of interest for EU enforcement authorities as they ask platforms about their design choices.
European consumer groups have previously raised concerns about various aspects of TikTok's platform design, including its use of virtual currency to create engagement incentives. Complaints filed in 2021 were collected through the Consumer Protection Cooperation Network, and the Commission was involved in facilitating dialogue between the two sides. The process culminated in June 2022 with TikTok offering a series of promises, including increased transparency around digital coins and virtual gifts.
But judging by the European Commission's oversight of TikTok's approach to DSA compliance, the platform needs to go further to satisfy enforcers of the relaunched EU Internet Rulebook, which came into full force in February this year. As of late August, systemic risk factors are expected to be respected in 2023.