TikTok owner ByteDance is facing new questions over its compliance with the European Union’s Digital Services Act (DSA), an online governance and content moderation framework that imposes a requirement on large platforms. legal duty to mitigate systemic risks in areas such as youth mental health.
The EU’s latest concerns regarding TikTok’s DSA compliance center around the launch of TikTok Lite. It’s a version of the video-sharing app recently launched (“test launched”, according to TikTok) in France and Spain – allowing users aged 18 and over to earn points for certain activities in the app, like liking content or following new creators. . TikTok says these points can be redeemed for gift cards or “coins” that can be given to creators.
The reward-linked engagement feature appears to have sparked concerns in the EU over a potentially addictive design that could have a negative impact on young people’s mental health. The European Commission oversees platforms’ compliance with DSA system risk requirements.
In a press release announcing the request for information (RFI), the Commission said it had asked TikTok for more details on the risk assessment it should have carried out before rolling out the new app in the EU.
“This concerns the potential impact of the new ‘Task and Reward Lite’ program on the protection of minors, as well as on the mental health of users, particularly with regard to the potential stimulation of addictive behaviors,” he wrote, adding that it also requests information on the measures TikTok has put in place to mitigate these systemic risks.
TikTok was given 24 hours to provide the TikTok Lite risk assessment. She has until April 26 to provide the other requested information, after which the Commission said it would analyze her response and assess next steps, such as whether to open a formal investigation.
Contacted for comment on the Commission’s RFI, a TikTok spokesperson said: “We have already been in direct contact with the Commission regarding this product and will respond to the request for information. »
ByteDance, owner of TikTok, is one of two dozen major online platforms subject to the strictest DSA rules, requiring them to take steps to mitigate systemic risks that use of their platforms could cause. Penalties for non-compliance with regulations can reach up to 6% of global annual revenue, which could result in hefty fines for TikTok in the event of confirmed non-compliance.
The broader impact of pan-European regulation will likely be felt on platforms’ product design choices, with European authorities wielding powers that could potentially force the reform of entire business models if they are found to have toxic impacts.
TikTok is already under investigation in the EU over a number of DSA obligations, including in the area of protection of minors and risk management related to addictive design and harmful content, after the Commission announced a formal investigation in February. But the latest RFI suggests that the EU is concerned that there are other areas of concern.
It is particularly interesting to see the Commission intervene so quickly after an attempted product launch, as the TikTok Lite app appears to have only been available in both markets for a very short time. The Commission says it was launched this month. (And here, for example, is a Spanish YouTube video about the rewards feature that was posted a little less than a week ago, in which the vlogger says that the program for earning money “simply by watching videos” has only just become available, and so far only on select Android devices.)
It is unclear whether TikTok conducted a DSA risk assessment for the new rewards program before the launch of TikTok Lite in the two EU markets. A TikTok spokesperson did not respond when we asked about this. But the regulation’s emphasis on systemic risk essentially makes such a move mandatory for features likely to appeal to minors.
TikTok told us that it requires TikTok Lite users to verify that they are 18 or older in order to collect points through their use of the app. Asked about the robustness of the age verification technology it uses, its spokesperson said the processes involved may include things like “submitting a selfie with a photo ID (e.g. passport or driving license), credit card authorizations, etc.
Other restrictions on the rewards program highlighted by TikTok are a maximum limit on rewards which it says is “roughly” equivalent to €1 per day. It also states that there is a maximum daily video length limit for rewards of one hour. So you can probably only earn points for one hour of video watching, after which you won’t accrue any more points that day.
How clearly these limits are communicated to TikTok Lite users may be an area of interest for European authorities questioning the platform over its design choices.
Consumer groups in Europe have previously raised concerns about various aspects of the design of the TikTok platform, including its use of virtual currency to create incentives for engagement. Complaints lodged in 2021 were routed through the Consumer Protection Cooperation Network, with the Commission involved to encourage a dialogue between the two parties. Then, in June 2022, the procedure resulted in TikTok proposing a series of commitments, including that of strengthening transparency around its digital coins and virtual gifts.
However, judging by the Commission’s monitoring of TikTok’s approach to DSA compliance, the platform may have to go further to satisfy authorities responsible for enforcing the new EU Internet Regulation, which came into full force in February – but with systemic risk elements that should be respected from the end of August. 2023.
techcrunch
