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Tiktok Halts Rewards Feature In Europe Amid Regulatory Pressure

The TikTok logo is seen on a mobile phone in front of a computer screen which displays the TikTok home screen, Saturday, March 18, 2023, in Boston. European Union regulators said Wednesday, Apr

TikTok has announced the suspension of a rewards feature on its new app in Europe following concerns raised by regulators regarding its potential addictive nature. The decision comes after the European Union expressed worries about the TikTok Lite app possibly violating digital regulations within the bloc.

The EU had recently cautioned that the TikTok Lite app, which was introduced in France and Spain, could be breaching regulations and posing risks to children. In response to the EU's warnings, TikTok voluntarily decided to halt the rewards functions in TikTok Lite while it addresses the raised concerns.

TikTok Lite is a streamlined version of the main TikTok app that allows users to earn points by watching videos, liking content, and following creators. These points can then be exchanged for rewards such as Amazon vouchers and PayPal gift cards.

EU officials had threatened TikTok with a potential order to suspend the reward features if the company failed to comply with the bloc's regulations. The EU demanded TikTok to provide information about the app, including a risk assessment that should have been conducted prior to the app's launch, under the risk of facing significant financial penalties.

European Commissioner Thierry Breton emphasized the importance of protecting children from potential harms associated with social media platforms. He highlighted the ongoing scrutiny of the main TikTok app under the EU's Digital Services Act, focusing on evaluating TikTok's efforts to mitigate risks related to its design and algorithmic systems that could contribute to behavioral addictions.

The EU is particularly concerned about the effectiveness of measures like age verification tools in preventing minors from accessing inappropriate content on TikTok. The regulatory pressure on TikTok underscores the growing scrutiny of social media platforms and their impact on users, especially vulnerable groups like children and teenagers.

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