Brussels (Brussels Morning) – European Commission initiates formal proceedings against TikTok under DSA for potential DSA violations related to TikTok Lite’s “Task and Reward Program.” The investigation focuses on risk assessment compliance.
The European Commission has unfolded a second formal proceeding against TikTok under the Digital Services Act (DSA). The commission states that it is to evaluate whether the company may have violated the DSA when launching TikTok Lite in France and Spain. Under the DSA, designated Very Large Online Platforms are compelled to present a risk assessment report, including efforts to mitigate any potential systemic risks, before establishing any new functionalities that are possible to have a critical impact on their systemic risks.
What Impact Does TikTok Lite Have?
According to the press of the European Commission, the Commission is concerned that the “Task and Reward Program” of TikTok Lite, which lets users earn points while conducting certain “tasks” on TikTok – such as watching videos, picking content, following creators, inviting friends to join TikTok, etc. – has been undertaken without prior diligent inspection of the risks it entails, in particular those linked to the addictive effect of the platforms, and without taking adequate risk mitigating measures. This is of distinct concern for children, given the suspected lack of effective age verification mechanisms on TikTok. The absence of effective age verification mechanisms and the supposed addictive design of the platforms are already under examination in the first formal proceedings against TikTok.
On what scopes will the investigation concentrate?
This investigation will concentrate on the following areas: TikTok’s adherence with the DSA obligation to conduct and introduce a risk assessment report before deploying functionalities, in this case, the “Task and Reward Lite” program, which is likely to have a critical effect on systemic risks. In particular negative impacts on mental health, including minors’ mental health, particularly as a result of the new feature stimulating addictive behaviour; The steps taken by TikTok to mitigate those risks.
As reported by the Commission, If verified, these failures would constitute violations of Articles 34 and 35 of the DSA. The Commission will undertake an in-depth investigation as a matter of priority. The opening of formal proceedings does not prejudge its outcome.
Has TikTok failed to provide the requested risk appraisal report for TikTok Lite?
In addition, the Commission has also dispatched TikTok a formal request for information, established on a Commission decision, compelling the firm to provide a reply to its request for information of 17 April 2024. In particular, the Commission had asked TikTok to provide by 18 April the risk appraisal report for TikTok Lite, as well as information about the steps the platform has put in place to contain potential systemic risks of these new functionalities. TikTok failed to provide such a document within the deadline.
TikTok now has until 23 April to present the risk assessment report to the Commission and until 3 May to deliver the other information requested.
Could TikTok face fines for not responding to the Commission’s request for information?
In case TikTok fails to respond to the Commission’s request for information by a decision within the implied deadlines, the Commission may charge fines up to 1% of the provider’s total annual income or worldwide turnover and periodic fines up to 5 % of the provider’s average daily revenue or worldwide annual turnover.
Did TikTok Fail to Submit Risk Assessment?
Finally, given TikTok’s incapability to submit the risk assessment which should have been carried out before launching TikTok Lite, the Commission doubts a prima facie infringement of the DSA and considers that there are threats of serious damage to the mental health of users. The Commission has therefore also spoken to TikTok about its intention to impose interim steps consisting of the suspension of the TikTok Lite rewards schedule in the EU pending the assessment of its safety. It could be revived if necessary and proportionate. Before formally assuming the suspension, TikTok has been issued until 24 April to bring arguments in its defence which the Commission will carefully assess.
The commencement of formal proceedings authorises the Commission to take further enforcement steps, such as interim steps, and non-compliance decisions. The Commission is also authorised to accept any commitment driven by TikTok to remedy on the issues subject to the proceeding.
The opening of formal proceedings facilitates Digital Services Coordinators, or any other competent control of EU Member States, of their powers to manage and enforce the DSA concerning the suspected infringements.
