Financial Markets

EU BLASTS TIKTOK LITE OVER SUSPECTED MENTAL HEALTH RISKS, LAUNCHES INVESTIGATION AMID ADDICTION FEARS!

Amid the raging debates around digital governance, content moderation, and protection of minors, the ubiquitous presence of social media platforms is increasingly met with scrutiny. The newest hotbed to have found itself mired in such controversy is ByteDance-owned TikTok. The tech giant is currently facing its second formal investigation by the European Union (EU) over potential infractions of the bloc’s Digital Services Act (DSA).

As part of its investigation, the EU Commission has warned of imposing interim measures, which could potentially suspend access to TikTok’s ancillary app—TikTok Lite—in the EU. The tech giant has been given until April 24 to argue against such sanctions. The probe substantiates the EU’s efforts to regulate product launches that could be viewed as risky if they flout stipulated procedures. If found guilty, punitive measures can be severe: fines of up to 6% of ByteDance's global annual turnover.

This latest probe into TikTok comes on the heels of a previous investigation, which remains ongoing. That investigation encompassed broad issues, encompassing everything from child protection and advertising transparency to data access for researchers and risk management of addictive design and harmful content.

The primary focus of this new investigation is TikTok Lite, a new version of the popular app incorporating a “task and reward” feature. Critics allege this feature could incite addictive behavior among users. ByteDance notably did not produce a risk assessment report in relation to this feature when asked to do so last week, further stoking the EU’s concerns. Other areas of concern include the lack of effective age verification mechanisms on TikTok.

The EU has accused ByteDance of a "prima facie infringement of the DSA" for launching TikTok Lite in France and Spain without filing the requisite risk assessment documentation. This violation could hit ByteDance with up to a 1% fine of its total annual income, along with other sanctions.

TikTok's defense asserts that the rewards hub in TikTok Lite is not accessible to users under 18 and that there is a daily limit on video watching tasks. It has vowed to continue discussions with the Commission. However, EU Internal Market Commissioner Thierry Breton has likened TikTok 'Lite' to 'light' cigarettes for its potential addictive effects, saying the EU is prepared to suspend the TikTok Lite feature and other DSA interim measures unless TikTok proves its safety.

As investigations are underway, the EU is also closely observing TikTok's approach to age verification.

These investigations’ outcome will strongly influence the digital landscape and the future of social media platforms, highlighting the imperative role of online governance and appropriately balancing innovation while ensuring user safety and welfare.