Written by: Haim Ravia, and Dotan Hammer
TikTok agreed to suspend its rewards program for European users after European Union regulators raised concerns about potentially addictive elements in its TikTok Lite app. This decision is part of a first-of-its-kind settlement under the EU Digital Services Act.
TikTok Lite, designed for use on slower wireless networks, included a program that rewarded adult users with points for activities like watching videos, liking posts, and inviting friends to join the app. These points could be exchanged for Amazon vouchers or converted into TikTok coins, which users could use to tip others.
Under the EU Digital Services Act, companies operating popular social media platforms must be transparent about how their content is algorithmically recommended and how their features might contribute to addictive behaviors. Large platforms like TikTok are required to submit risk assessments before making significant changes to their products or services. However, authorities claimed that TikTok failed to provide the necessary information before launching its rewards program, arguing that the program created a financial incentive to spend more time on the app, thereby increasing risks of addiction and mental health issues, particularly among children.
In response to the EU’s concerns, TikTok suspended the rewards program. This action marked the first compromise settlement of its kind between the company and EU regulators.
