The European Union has launched a formal investigation into TikTok, raising the potential for hefty fines if the popular video app is found to have violated the bloc’s new Digital Services Act (DSA).
This move follows concerns about potential breaches in areas related to child safety, advertising transparency, and algorithmic practices. The investigation, announced by EU industry chief Thierry Breton, comes after analyzing TikTok’s risk assessment and information requests.
The EU will scrutinize TikTok’s measures to protect children, including age verification, privacy settings, and potential “addictive design” features that might promote excessive screen time or “rabbit hole” effects.
Transparency in advertising: The DSA demands clear and accurate labeling of sponsored content. The investigation will probe whether TikTok meets these requirements, ensuring users understand when they’re seeing advertising.
The EU will assess if TikTok implements sufficient safeguards to protect user privacy, particularly for minors.
If found guilty of breaching DSA rules, TikTok could face fines of up to 6% of its global turnover, a significant financial blow.
The investigation marks the second DSA probe, following a similar action against Elon Musk’s Twitter platform in December 2023.
The company maintains it prioritizes user safety and has already implemented features to protect young users and prevent under-13s from accessing the platform. They expressed willingness to cooperate with the investigation and clarify their practices.
This investigation highlights the EU’s commitment to enforcing the DSA, aiming to ensure online platforms operate responsibly and prioritize user safety, privacy, and transparency. The outcome of the probe will be closely watched by other platforms and could set a precedent for future enforcement actions.
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