In Europe's strict regulatory environment for digital services, the European Commission launched a formal investigation into the social media giant TikTok. This investigation targets TikTok Lite and its "Tasks and Rewards Program" launched in France and Spain, examining its possible violations of the Digital Services Act (DSA).
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ToggleTikTok financial gamification, EU launches investigation
The European Commission announced on April 22 that it has launched an investigation into TikTok to confirm whether TikTok Lite complies with the strict requirements of the DSA. According to the DSA, platforms like TikTok, which are classified as very large online platforms due to their large user base, must conduct a comprehensive risk assessment and implement measures to mitigate systemic risks before launching new features.
TikTok Lite may cause addiction
The European Commission is concerned about TikTok Lite’s “Tasks and Rewards Scheme” feature. This feature encourages users to earn points through various activities such as watching videos and inviting friends, which can later be redeemed for rewards. European agencies have expressed concerns about the potentially addictive nature of these tasks and the lack of effective age verification mechanisms, especially given the younger demographic of TikTok users.
Require TikTok to submit a risk assessment report
The investigation will examine whether TikTok conducted a risk assessment and submitted a report before launching the function. In addition, the investigation will also evaluate what measures TikTok has taken to mitigate the risks cited, especially those that affect the mental health of minors through potentially addictive behaviors.
TikTok may face fines
TikTok will be required to submit required risk assessment reports, as well as other information about TikTok Lite. TikTok may face fines if it fails to comply.
TikTok was designated as a very large online platform in April 2023, making it subject to the DSA because it has more than 45 million active users in the EU. Ongoing scrutiny of TikTok Lite adds to the regulatory challenges it faces.
The crypto is also crazy about points
In recent years, the cryptocurrency community has also become quite popular in the behavior of collecting points and other airdrops. In the weakly regulated cryptocurrency world, addictive behaviors driven by the temptation of money have been around for a long time. However, in the Web2 world, regulatory agencies are more concerned about a wider range of issues and will directly intervene in investigations, in contrast to the Web3 world.
