The European Commission has wrapped up its investigation into TikTok Lite's rewards feature by accepting the company's commitment to permanently remove it from the EU market. This decision marks a significant step in regulating how social media platforms engage with their users, especially younger ones.
Earlier this year, TikTok Lite introduced a “task and reward” system in France and Spain, allowing users to earn points for in-app activities, such as watching and liking videos, which could be exchanged for Amazon vouchers. However, the Commission raised concerns that this feature might encourage addictive behavior among young users, potentially impacting their mental health negatively.
In response to the investigation launched in April, TikTok suspended the rewards mechanism and has now agreed to ensure it won’t reintroduce a similar feature under a different name. While the settlement doesn’t include a formal finding of a DSA breach or a penalty, TikTok faces significant compliance pressure, with potential fines of up to 6% of global annual turnover if it fails to uphold the agreement.
Thierry Breton, the EU’s internal market commissioner, emphasized the importance of protecting young users from addictive features, stating, “The available brain time of young Europeans is not a currency for social media — and it never will be.” He highlighted that this settlement reflects the EU’s commitment to enforcing the Digital Services Act (DSA) effectively.
TikTok has expressed its satisfaction with the resolution, confirming that the rewards program has been withdrawn and emphasizing its commitment to constructive engagement with regulators. However, the company is still under scrutiny for another broader investigation concerning its main app’s algorithm, which the EU fears might promote harmful content and inadequate age-assurance measures.
As regulatory oversight of social media platforms intensifies, this case underscores the EU's proactive approach to safeguarding users, particularly minors, from potentially harmful digital practices. For further insights into the impact of the DSA and the Digital Markets Act (DMA) on major tech platforms, stay tuned to our in-depth coverage.
