In response to mounting legal scrutiny from the European Commission, TikTok, the Chinese-owned video sharing giant, has announced the voluntary suspension of its rewards scheme for the newly launched TikTok Lite app.
This comes amidst an ongoing investigation by the EU concerning the potential risks posed by the rewards feature.
The European Commission had issued an ultimatum, stating that unless TikTok could prove within 48 hours that the rewards scheme did not pose a serious risk, it could face orders to suspend the feature. The Commission emphasized the necessity for TikTok to demonstrate compliance with risk assessment and mitigation regulations outlined in the European Union’s Digital Services Act (DSA).
TikTok responded to the Commission’s concerns, stating, “TikTok always seeks to engage constructively with the EU Commission and other regulators. We are therefore voluntarily suspending the rewards functions in TikTok Lite while we address the concerns that they have raised.”
The probe centers on the mechanics of TikTok Lite’s rewards system, which allows users to accumulate points by watching videos and redeem them for various rewards, including Amazon vouchers. The Commission expressed apprehension regarding the potential addictive nature of the scheme and highlighted the absence of a thorough risk assessment prior to its launch.
TikTok Lite, designed to offer a streamlined experience with lower memory and bandwidth requirements, recently debuted in the European market with launches in Spain and France.
