EU Investigators Launch Probe into TikTok’s Newest Development Initiative

Appears like one other powerful week forward for TikTok.

With the U.S. seeking to push ahead a Senate vote that will resolve the destiny of the app for its 170 million American customers, E.U. officers are additionally questioning one other TikTok initiative, which is seemingly designed to extend utilization in that area.

A few weeks again, The Information’s Kaya Yurieff reported that TikTok had launched a brand new providing in Spain, France, and several other different international locations, which successfully pays customers for utilizing the app.

As defined by Yurieff:

“[TikTok] is introducing a new app that will encourage users to watch videos, invite friends to sign up and perform other actions by awarding them points they can redeem as gift cards or digital tips to give creators. The app, called “Coin App” throughout the firm and “TikTok Lite” to the general public, is designed to assist TikTok increase development amongst individuals aged 18 and older.”

On the time, once I learn this replace, I assumed there could also be one thing extra to it, as TikTok really launched its separate “TikTok Lite” app back in 2018. So it wouldn’t be a brand new app, as such, however a brand new program, and it appeared like there could be extra data to return as to how the initiative would operate.

However based on screenshots, that is precisely how TikTok Lite’s rewards program works.

The prompts right here inform customers that they’ll earn factors by discovering and liking movies within the app. There’s additionally a meter that fills as much as let you understand how you’re progressing in direction of level objectives, gamifying utilization of the app.

And evidently, E.U. investigators have seen sufficient to lift their very own considerations, with the E.U. as we speak announcing a formal probe into the TikTok Lite program, which it believes could also be in violation of its  Digital Companies Act (D.S.A.).

As per E.U. Commission:

“The Commission has opened a formal proceeding to assess whether [TikTok] may have breached the DSA when launching TikTok Lite in France and Spain. Under the DSA, designated Very Large Online Platforms are obliged to submit a risk assessment report, including measures to mitigate any potential systemic risks, prior to launching any new functionalities that are likely to have a critical impact on their systemic risks. The Commission is concerned that the “Task and Reward Program” of TikTok Lite, which permits customers to earn factors whereas performing sure “tasks” on TikTok – resembling watching movies, liking content material, following creators, inviting associates to hitch TikTok, and so on. – has been launched with out prior diligent evaluation of the dangers it entails, specifically these associated to the addictive impact of the platforms, and with out taking efficient threat mitigating measures.”

E.U. investigators are particularly involved in regards to the potential impacts of this system on youngsters, as it could incentivize extra utilization, with youngsters successfully being paid to maintain scrolling within the app.

Which appears fairly dangerous, and never an incredible search for TikTok general.

The E.U. Fee says that it might search to droop this system within the instant time period, whereas violations of the D.S.A. also can price corporations as much as 6% of their world income.

TikTok will now have till April twenty fourth to stipulate its response to the claims.

Actually, if that is the framework that TikTok goes with to reignite curiosity within the app, then it’s a reasonably determined measure, which is prone to set off sanctions in opposition to the app.

In line with Yurieff, TikTok has seen a slowdown in utilization of late. The platform at present has round 136 million users in Europe, a big chunk of its general viewers, although its momentum has eased as different platforms have provided comparative features like Instagram Reels and YouTube Shorts.

Which is why it’s seeking to new initiatives to spice up curiosity as soon as once more, and the proposed define of this program is questionable, on numerous fronts.

Mainly, if that is what TikTok’s providing, it’s an issue, that may see it punished because of this. However possibly, TikTok has some various clarification, which it’s going to current to European authorities.   

Both manner, it’s one other headache for the app, particularly because it’s attempting to argue that it’s not seeking to affect person habits.