Euractiv I TikTok ‘voluntarily’ suspends Reward Program amidst European Commission concerns - 24.04.2024

TikTok is “voluntarily” suspending the rewards functions in TikTok Lite, the company said on Wednesday (24 April), just days after the European Commission announced a second round of formal proceedings against its rewards programme. 

TikTok Lite is a new app designed for regions with slower internet speeds. It launched last month in Spain and France. 

Recently, the Commission expressed concerns about TikTok Lite’s “Task and Reward Program,” which allows users to earn points for engaging with the app. Rewards include Amazon vouchers, PayPal gift cards, and an in-app currency called TikTok coins. 

 The EU executive also voiced concerns about addictive effects, especially for children, due to the potential absence of effective age verification mechanisms. 

“TikTok always seeks to engage constructively with the European Commission and other regulators,” so it is suspending the rewards functions, while it addresses the Commission’s concerns, the TikTok Policy Europe account posted on X on Wednesday. 

Commissioner for Internal Market Thierry Breton said on Monday that the executive is “ready to trigger” measures under the EU’s Digital Services Act (DSA), including the rewards programme’s suspension, on X. 

In response to TikTok’s announcement, the Commissioner said he “takes note” of TikTok’s decision. 

However, he added “The cases against TikTok on the risk of addictiveness of the platform continue,” which includes “the investigation to establish whether the launch of TikTok Lite was done in compliance with the DSA.” 

TikTok faces EU Commission's second probe, potential suspension of reward program 

The European Commission initiated a second formal proceeding against TikTok under the Digital Services Act on Monday (22 April), focusing on the launch of TikTok Lite in France and Spain, signalling intentions to suspend its “Reward Program” in the EU. 

The Digital Services Act (DSA), under which the Commission opened proceedings, entered into force on 17 February, regulates how online actors should deal with illegal and harmful content online. 

TikTok is part of the DSA’s very large online platforms (VLOPs) list, which is why the Chinese-owned social media platform has to follow its rules. 

Under the DSA, the risk assessment should have been conducted and submitted before the Lite app’s launch. This is why last Wednesday’s proceedings against TikTok by the Commission included a request for information on how the platform evaluated the risks associated with the launch of the Lite app. 

TikTok missed a 24-hour deadline set last Wednesday to submit its risk assessment, a Commission official said during a Monday briefing. On the same day, the Commission gave the app another 24 hours to submit the assessment — until 23 April. 

On Wednesday, a TikTok spokesperson and a Commission spokesperson confirmed to Euractiv that the risk assessment was sent and received in the meantime. 

France’s digital minister Marina Ferrari and MEP Stéphanie Yon-Courtin “welcomed” the suspension on Wednesday. 

After TikTok Lite launch in Spain, France, EU Commission wants details 

The EU Commission has given 24 hours for TikTok to provide a risk evaluation of the lighter version of its app, which the executive says should have been conducted prior to the app’s launch in France and Spain in April