TikTok Faces EU Ban and Fines Over TikTok Lite

European Union officials are considering hefty fines and the suspension of TikTok Lite due to concerns about its addictive features. TikTok Lite is a scaled-down version of TikTok that offers users cash rewards for engaging with the app.

EU regulators worry that these cash incentives could lead to addiction, particularly among users in Spain and France where the app has been introduced. This is the second major investigation the EU has launched into TikTok, with a specific focus on potential harm to users’ mental health.

The EU’s action comes shortly after the U.S. House of Representatives passed a bill that could ban TikTok in the United States over national security worries. Meanwhile, the U.S. Senate is set to review this legislation soon.

Under the EU’s Digital Services Act (DSA), the European Commission has given TikTok 48 hours to defend its reward program. Failure to provide satisfactory explanations could result in an immediate suspension of the rewards feature in TikTok Lite. The suspension could last up to 60 days and could be extended.

Additionally, TikTok faces potential fines for not submitting required information about TikTok Lite, including risk assessments and steps taken to mitigate those risks. Failure to comply could lead to fines of up to 1% of TikTok’s global annual revenue, along with periodic penalties of up to 5% of its average daily revenue.

If the EU determines that TikTok Lite’s features violate the DSA, the company could face further fines of up to 6% of its global annual revenue. These potential penalties are new tools that the European Commission has not previously employed under the DSA.

TikTok has responded by stating that the TikTok Lite rewards hub is not available to users under 18 and that there is a daily limit on video watch tasks. The company plans to continue discussions with the Commission.

The EU’s move underscores its commitment to protecting users, particularly minors, from potential harm caused by online platforms. It also highlights the increased scrutiny that tech companies like TikTok face as regulators seek to ensure compliance with new digital regulations.