TikTok to Remove Lite In-App Rewards Program Targeted by Historic European Union DSA Case

At the same time, the company has not admitted any wrongdoing and will not be fined under what is being described as a “commitment” settlement under the DSA.

“The time available to young Europeans is not the currency of social media – and it never will be,” said Thierry Breton, the European Union’s internal market chief, announcing the agreement on Monday.

“We have obtained a permanent removal of the TikTok Lite rewards program, which could have had highly addictive consequences. DSA is in full swing.”

In April, the European Commission an investigation has been launched whether the program causes minors to become addicted to the short video platform.

The “Tasks and Rewards Program” allowed users to earn points by, for example, watching videos, liking content, following creators and inviting friends to join TikTok, which the commission saw as potentially “rewarding excessive screen time” among minors.

“A rewards program that can stimulate addictive behaviors could potentially have a negative impact on the physical and mental health of users. This is particularly concerning for minors who may have an increased sensitivity to such characteristics,” the committee said.

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Following the commission’s investigation, TikTok suspended the program in two countries – France and Spain – where it previously operated.

Commission sources said Brussels was working closely on the matter with regulators in those two countries, as well as in Ireland, where TikTok’s European headquarters is located.

Sources said that although TikTok – owned by Chinese technology company ByteDance – were pleased with how quickly the 105-day proceedings were completed. If the case had gone to court or if a fine had been necessary, it would have been a longer process.

A separate DSA investigation, launched in February, remains ongoing.

The investigation is looking into whether an algorithm in TikTok’s main app may have been deliberately designed to create a “rabbit hole effect” that could lead to “behavioral addictions.”

TikTok is not the only Chinese company to find itself in the crosshairs of Brussels’ digital regulators. AliExpress Online Marketplace is also under investigation, while fast fashion retailer Shein was recently designated a “very large internet platform,” making it vulnerable to scrutiny in an area that has quickly become a new headache in tense EU-China relations.

AliExpress is owned by Alibaba, which also owns the South China Morning Post.

Chinese companies have also become the target of a series of trade and competition investigations, while long-standing complaints about Beijing’s economic policies have led to increasingly temperamental behaviour from EU watchdogs.