European Union regulators could fine TikTok for the addictive features of its TikTok Lite app, which is designed for slower wireless networks.
The EU’s concerns focus on TikTok Lite’s reward features, which incentivize users with gift cards for engaging with content.
These features potentially increase the risk of addiction and mental health issues, especially among children.
Regulators say TikTok failed to perform a mandatory risk assessment before launching these features.
This violates the EU’s Digital Services Act 2022.
EU law mandates large digital platforms assess risks related to major product changes.
This regulatory action in the EU is TikTok’s second probe in the region.
It adds to an ongoing investigation regarding the app’s age verification processes and the addictive nature of its design.
Need Career Advice? Get employment skills advice at all levels of your career
TikTok said the Lite appis currently test-launched only in France and Spain/
The company said it restricts access to adults verified through ID or credit card checks.
It also limits video viewing-related tasks to one hour per day.
TikTok faces problems in the U.S
The social media giant faces increasing regulatory scrutiny, especially in the U.S.
The Senate is considering a bill that could force its Chinese owner, ByteDance, to divest TikTok or face a ban in the country due to national security concerns.
The Senate is poised to vote on legislation that could compel ByteDance to sell the company.
This bill is part of fears among US officials the Chinese government could exploit TikTok for data harvesting or disinformation campaigns.
Back in the EU, TikTok has been given a deadline to submit the required risk assessment and other requested information.
Failure to comply could result in fines of up to one percent of TikTok’s annual revenue, with potential additional daily penalties reaching five percent of its average daily turnover.
