TikTok commits to permanently withdraw TikTok Lite Rewards programme from the EU
To comply with the Digital Services Act, TikTok has committed to permanently withdraw TikTok Lite Rewards programme from the EU after concerns were raised by the Commission in formal proceedings opened against TikTok on 22 April.
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On August 5, 2024, the European Commission made TikTok's commitments to permanently withdraw TikTok Lite Rewards programme from the EU binding. These commitments have been submitted by TikTok to address the concerns raised by the Commission in the formal proceedings opened against TikTok on 22 April and ensure compliance with the Digital Services Act (DSA).
The platform has made the following commitments:
A commitment to withdraw the TikTok Lite Rewards programme from the EU, permanently; A commitment not to launch any other programme which would circumvent the withdrawal.
The decision makes these commitments legally binding, meaning that any breach of the commitments would immediately amount to a breach of the DSA and could therefore lead to fines. With this decision, the Commission is also closing the formal proceedings opened against TikTok on 22 April.
This is the first case the EU regulators close under the DSA, 105 days after the opening of the proceedings. This is also the first time that the EU accepts commitments from a designated online platform against which it had opened formal proceedings under the DSA.
Next Steps
The Commission will carefully monitor TikTok's compliance with the binding commitments the platform has offered under article 71 of the DSA, as well as with its other obligations under the DSA.
The Commission's first formal proceedings against TikTok, which were launched on 19 February, remain open and the investigation continues.
Background
TikTok Lite is a new separate version of the TikTok app. Following its launch in Spain and France in April 2024, the Commission expressed concerns regarding the TikTok Lite Rewards programme, which allowed users to earn points while performing certain ‘Tasks' on TikTok Lite, such as watching videos, liking content, following creators, inviting friends to join TikTok, etc.
The EU was concerned that the TikTok Lite Rewards programme had been launched without a prior diligent assessment of the risks it entails, particularly in relation to the addictive effect of the Rewards programme, and without taking effective risk mitigating measures. The Rewards programme, which may stimulate addictive behaviour, could potentially have negative effects on the physical and mental health of users, the commission said. This is of particular concern for minors, who may have a heightened sensitivity to such features, it added.
Under the DSA, Very Large Online Platforms are required to perform a risk assessment and submit a report to the Commission's services prior to launching any new functionalities that are likely to have a critical impact on systemic risks. They also have to adopt effective mitigating measures to address identified risks.
As TikTok failed to provide a risk assessment report in relation to the launch of TikTok Lite, the Commission adopted a decision on 22 April to initiate formal proceedings against TikTok and warned TikTok of its intention to suspend the TikTok Lite Rewards programme in the EU. On 24 April, the Commission took note of TikTok's decision to voluntary suspend the TikTok Lite Rewards programme in the European Union.
Currently there are formal proceedings open under the DSA against X (from December 2023, for which preliminary findings were issued on 12 July 2024), TikTok (February 2024), AliExpress (March 2024), and Meta (April and May 2024).
