The European Commission has launched a formal investigation into social media giant TikTok amid Europe's strict regulatory environment for digital services. The investigation is targeting TikTok Lite and its Tasks and Rewards Program in France and Spain, examining possible violations of the Digital Services Act (DSA).

TikTok financial gamification, EU launches investigation

The European Commission announced on April 22 that it would launch 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 is classified as a very large online platform due to its large user base, must conduct a comprehensive risk assessment and implement measures to mitigate systemic risks before rolling out 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 risk assessment report

The investigation will examine whether TikTok conducted a risk assessment and submit a report before the feature was launched. Additionally, the investigation will assess what steps TikTok has taken to mitigate the risks cited, particularly those that impact the mental health of minors through potentially addictive behaviors.

TikTok may face fines

TikTok will be required to submit a required risk assessment report, among other information regarding TikTok Lite. If TikTok fails to comply, it could face fines.

TikTok was designated 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 currency circle is also crazy about points

In recent years, the cryptocurrency community has also become quite popular in the behavior of redeeming 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.

This article points rewards for playing TikTok are under investigation! The European Union is worried about the “points addiction” affecting minors and faces an order to suspend operations. First appeared on Chain News ABMedia.