European Union (EU) regulators are proceeding with an investigation into the TikTok app regarding its age-verification process and addictive features. The investigation comes as the EU warned TikTok on Monday that it would face fines over what they allege are addictive features used by a version of the social media giant’s app called TikTok Lite. Regulators accuse TikTok’s Chinese-based parent company, ByteDance, of failing to carry out risk assessments on the new features added to TikTok Lite, including a rewards program that allows users to win gift cards for watching videos.
According to EU regulators, the gift card program may breach European laws as it creates a financial incentive for users to spend more extended periods on the TikTok app and could facilitate social media addiction in children. Additionally, European lawmakers are concerned that the social media app could be exacerbating mental health issues among its population.
The social media company — deemed noncompliant with the EU’s Digital Services Act — will have until April 23 to provide the European Commission with its risk assessment. Additional supplementary documents are due by May 3. If TikTok fails to comply with the regulatory request, it faces penalties of up to 1 percent of its annual income and a rolling penalty of up to 5 percent of its average daily income.
TikTok and ByteDance are also facing renewed scrutiny in the United States. The U.S. Senate will soon consider a broad package of foreign aid and regulatory provisions, a subset of which addresses concerns over TikTok’s Chinese ownership. The provision will require the Chinese technology conglomerate ByteDance to either divest itself from the ownership of the TikTok app or face its ban in the U.S.
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