TikTok is withdrawing its rewards program from the TikTok Lite app in France and Spain, following pressure from European regulators. The program allowed users to earn points for watching and liking videos, which could be exchanged for vouchers or gift cards. The decision marks a significant move under the EU's Digital Services Act (DSA), which aims to enhance online safety and accountability.
Here’s a summary of the key points:
Regulatory Pressure: The European Commission, concerned about the potential addictive nature of the rewards program, pushed for its removal. Thierry Breton, the EU’s internal market commissioner, stated that the program could have had "very addictive consequences."
TikTok’s Response: TikTok has committed to permanently removing the rewards program and not launching any similar programs that could circumvent this withdrawal. This is seen as a major step in enforcing the DSA, which mandates digital firms to regulate online content to protect users.
Compliance and Monitoring: The EU will monitor TikTok’s adherence to these commitments, with potential heavy fines for any breaches. The DSA allows fines up to 6% of a company’s global annual revenues for non-compliance.
Ongoing Investigations: TikTok is still under scrutiny in the EU for other issues related to the negative impact on young users. The company is also facing challenges in the US, including a lawsuit related to privacy concerns and a law that could force the app's sale or ban.
Broader Context: TikTok is among 25 large online platforms that must comply with the DSA's stricter rules. The platform also faces investigations into its practices on both sides of the Atlantic, including concerns over data privacy and user protection.
The withdrawal of the rewards program is part of a broader effort to ensure digital platforms operate responsibly and transparently in line with new regulations.