TikTok Lite: EU resolves addictive design case after TikTok pledges to not bring back the incentives mechanism

The European Commission has ended a Digital Services Act (DSA) investigation into TikTok Lite's rewards feature by accepting its commitment to permanently withdraw the feature from the EU. TikTok Lite's "Tasks and Rewards" mechanism, launched in France and Spain earlier this year, allows users to earn points for in-app activities such as watching and liking videos. 

Shortly after the European Commission launched an investigation, TikTok temporarily suspended the EU reward system. The EU had threatened to use temporary powers to shut down the feature while investigating concerns that it encouraged people to spend too much time on the app. Briefing reporters on the background, a senior European Commission official said enforcers were pleased with the outcome as it was achieved quickly and allowed EU citizens, including minors, to be protected.

The settlement does mean that the European Commission has not formally found TikTok to have breached the DSA and therefore will not be subject to penalties. However, the European Commission stressed that if TikTok defaults, the company could face immediate fines under the DSA, which allows fines of up to 6% of global annual turnover without the need for a new investigation. Therefore, TikTok has a significant incentive to comply in this regard.

The "task and reward" of TIK Lite was opened in France and Spain earlier this year. These points can be redeemed for Amazon coupons. TikTok Lite is an alternative, low-bandwidth version of the TikTok app that the company offers in some markets. TikTok also agreed not to try to circumvent its commitments, such as rolling out the same feature under a different name or deploying a version as an equivalent alternative, according to the European Commission. While the settlement applies to TikTok Lite’s rewards mechanism, which is being investigated by the EU, it’s not a blanket ban on TikTok from rolling out any future rewards features. When the EU launched an investigation into reward features in April, the European Commission expressed concerns that the mechanism's design could "stimulate addictive behaviour" and thus negatively impact the mental health of young users.

Shortly after the European Commission launched an investigation, TikTok temporarily suspended the EU reward system. The EU had threatened to use temporary powers to shut down the feature while investigating concerns that it encouraged people to spend too much time on the app. Briefing reporters on the background, a senior European Commission official said enforcement authorities were satisfied with the result because it was achieved quickly and allows for the protection of EU citizens, including minors.

The settlement means that the European Commission has not formally found TikTok to have violated the DSA and will therefore not face sanctions. But the European Commission stressed that if TikTok defaults, the company could face immediate sanctions under the DSA, which allows fines of up to 6% of global annual turnover without the need for a new investigation. 

EU Internal Market Commissioner Thierry Breton commented in a statement: “The brain time available to Europe's youth is not a social media currency and never will be. We have achieved a permanent withdrawal of Tiktok Lite Rite Rewards, which can have very addictive consequences. DSA is in full swing. "

While the TikTok DSA case is now closed, a separate, larger investigation that was announced in February is still ongoing. The case covers areas such as TikTok's main app algorithm. The Committee stated that it was worried that tracking recommendations for motor design can cause a "rabbit hole effect". Promote nutritional disorders.

The European Union is also concerned that the TIKS has not used the appropriate age guarantee to protect children from inappropriate access to inappropriate access. TikTok's compliance with the DSA's transparency requirements is also under investigation.