TikTok bows to EU, withdraws rewards program

TikTok is bowing to pressure from European regulators, the EU and Chinese companies said on Monday, meaning it will permanently remove a feature from its French and Spanish-owned app that rewards users for watching and liking videos.

TikTok Lite launched in France and Spain — the only EU countries where it is available — in April this year. Users aged 18 and over can earn points that can be redeemed for goods such as vouchers or gift cards through the app’s rewards program.

“We have achieved the permanent withdrawal of the TikTok Lite Rewards programme, which could have had highly addictive effects,” said EU Internal Market Commissioner Thierry Breton.

TikTok Lite is a smaller version of the popular TikTok app, taking up less memory on your smartphone and designed to work on slower internet connections.

TikTok has committed to removing the programme from the 27-country list and not launching “any other programme that could circumvent the delisting”, the European Commission said in a statement.

It is the first major victory for the European Union’s groundbreaking Digital Services Act (DSA), a far-reaching new law that requires digital companies operating in the bloc to effectively police online content to protect users from harm.

The Commission opened an investigation into the Lite app in April over concerns it was “addictive,” forcing TikTok to temporarily suspend the program.

The case was closed after TikTok, owned by Chinese company ByteDance, made binding commitments.

Any breach of these promises could result in heavy fines under the DSA.

“We will closely monitor TikTok’s compliance. Today’s decision also sends a clear signal to the entire social media industry,” said the commission’s executive vice-president, Margrethe Vestager.

TikTok has confirmed it has “retired” its rewards program.

“We always strive to work constructively with the European Commission and other regulators. TikTok is pleased that an amicable solution has been reached,” a company spokesperson said.

TikTok under pressure

TikTok remains under investigation after a separate investigation was launched in February over concerns that TikTok was not doing enough to address the negative influence it has on young people.

TikTok is one of 25 “very large” internet platforms, including Facebook, Instagram and YouTube, that must comply with the DSA’s stricter rules from August 2023.

These regulations also require online sellers to take effective measures to protect customers who shop online.

The DSA gives the EU the power to fine companies up to six percent of their global annual revenue.

Repeat offender platforms could be blocked in the EU.

Investigations are also ongoing into X, formerly Twitter; Chinese online retailer AliExpress; and Meta in connection with its Facebook and Instagram platforms.

TikTok is also grappling with a litany of problems on the other side of the Atlantic.

The company has filed a lawsuit to stop a US law that would require the app to be sold next year or face a ban in the US on the grounds that it violates First Amendment freedom of speech.

The United States stepped up pressure on TikTok by filing a lawsuit last week accusing the app of invading children’s privacy by collecting their data without parental consent when they use the platform.

TikTok said it disagrees with the accusations and that the company has implemented safety measures to ensure users receive age-appropriate content.

Source: AFP