TikTok Halts Rewards Program Following EU Scrutiny

TikTok made an announcement on Wednesday regarding the suspension of a feature within its TikTok Lite app in France and Spain, halting the rewards program that incentivizes users for watching and liking videos, according to a report by AFP.

This decision comes after the initiation of a probe by the European Union into the platform's practices.

TikTok Suspends the Rewards Program in the Lite App

The suspension of the rewards feature in the TikTok Lite app for users in France and Spain is a temporary measure taken by TikTok while they address the concerns raised by the European Union.

Thierry Breton, the European Commission's top tech enforcer, emphasized that the investigation into TikTok would continue. He stated concerns about safeguarding children from potential risks associated with social media platforms, emphasizing that they should not serve as experimental subjects.

Introduced in March, TikTok Lite is a condensed version of the main TikTok app, designed to consume less device memory and function efficiently on slower internet connections. It arrived in France and Spain as part of its limited release within the European Union.

The European Commission's investigation into TikTok Lite was prompted by concerns over the rewards program's impact on users' mental well-being. The commission urged additional information from TikTok, setting a deadline for response and asking the company to defend against the potential suspension of the rewards program.

Breton expressed apprehensions about the addictive nature of the rewards feature and criticized TikTok for what he deemed a lack of thorough risk assessment and mitigation measures prior to its implementation.

This investigation marks the EU's second regulatory action against TikTok under the Digital Services Act (DSA), a comprehensive law aimed at regulating digital platforms operating across the EU member states.

TikTok Lite users in France and Spain could earn rewards by engaging in various activities within the app, including daily logins, watching videos within specified time limits, and interacting with content through likes and follows.

As one of the very large digital platforms subject to the DSA's stricter regulations, TikTok faces potential penalties, including substantial fines up to six percent of its global annual revenues, for non-compliance with the law.

TikTok Faces Potential US Ban

In the United States, TikTok is also confronting regulatory challenges. The US Congress recently passed a bill mandating the divestment of TikTok from its parent company, ByteDance, citing concerns about national security and data privacy.

TikTok's CEO, Shou Zi Chew, expressed firm opposition to the US legislation, characterizing it as a ban on TikTok and vowing to contest it through legal channels.

"This ban would devastate seven million businesses and silence 170 million Americans. As we continue to challenge this unconstitutional ban, we will continue investing and innovating to ensure TikTok remains a space where Americans of all walks of life can safely come to share their experiences, find joy, and be inspired," TikTok wrote in an official statement.