TikTok will permanently remove a feature in a spin-off app in France and Spain that rewards users for watching and liking videos, bowing to pressure from European regulators, the EU and the Chinese-owned company said on Monday.
TikTok Lite arrived in France and Spain in April this year – the only EU countries where it is available. Users aged 18 and over can earn points through the app’s rewards program, which they can exchange for goods such as vouchers or gift cards.
“We have achieved the permanent withdrawal of the TikTok Lite Rewards program, which could have had highly addictive consequences,” said EU Internal Market Commissioner Thierry Breton.
TikTok Lite is a smaller version of the popular TikTok app that takes up less storage space on a smartphone and is designed to perform on slower internet connections.
TikTok has committed to removing the program from the 27-country bloc and “not to launch any other programs that would circumvent the withdrawal,” the European Commission said in a statement.
It is the first major victory for the European Union’s landmark Digital Services Act (DSA), a comprehensive new law that requires digital companies operating in the Union to effectively monitor online content to protect users from harm.
The Commission launched an investigation into the Lite app in April over concerns about its “addictive” nature, forcing TikTok to temporarily suspend the program.
The case is now closed after TikTok, owned by Chinese company ByteDance, made binding commitments.
Any breach of the commitments can result in heavy fines under the DSA.
“We will carefully monitor TikTok’s compliance with the rules. Today’s decision also sends a clear message to the entire social media industry,” said Commission Vice-Chair Margrethe Vestager.
TikTok confirmed that it had “temporarily withdrawn” the rewards program.
“We always strive to work constructively with the European Commission and other regulators. TikTok is pleased to have reached an amicable agreement,” a company spokesperson said.
TikTok under pressure
TikTok remains under investigation after a separate inquiry was launched in February amid concerns that TikTok may not be doing enough to counteract its negative impact on young people.
TikTok is among 25 “very large” online platforms, including Facebook, Instagram and YouTube, that will have to comply with the DSA’s stricter rules starting August 2023.
The regulations also expect digital retailers to take effective measures to protect online shoppers.
The DSA gives the EU the power to impose fines on companies of up to six percent of their annual global turnover.
Repeat offenders may have the platform blocked in the EU.
Investigations are also underway against X (formerly Twitter), the Chinese online retailer AliExpress and Meta because of its platforms Facebook and Instagram.
TikTok is also facing a number of problems on the other side of the Atlantic.
The company has filed a lawsuit to stop a U.S. law that requires the app to be sold next year or face a U.S. ban because the app allegedly violates the First Amendment’s right to free speech.
Last week, the US increased the pressure on TikTok with a lawsuit. They accuse the app of violating children’s privacy by collecting data about them when they use the platform without their parents’ permission.
TikTok said it does not agree with the allegations and that the company has safeguards in place to ensure age-appropriate experiences.
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