TikTok has agreed to permanently remove its rewards program from the European Union following concerns raised by the bloc’s regulators about its potential “addictive effect.”
The European Commission announced Monday (August 5) that the ByteDance-owned video sharing platform has also agreed not to launch any other program that would circumvent the withdrawal.
The decision comes just months after the launch of TikTok Lite Rewards in Spain and France. The program allowed users to earn points by completing tasks such as watching videos, liking content, following creators, and inviting friends to join the platform. The European Commission expressed concerns about the program’s potential to encourage addictive behavior, particularly among minors.
“The Rewards program, which may stimulate addictive behavior, could potentially have negative effects on the physical and mental health of users. This is of particular concern for minors, who may have a heightened sensitivity to such features,” the Commission said.
TikTok’s decision ensures that it is compliant with the EU’s Digital Services Act (DSA), a regulation designed to create a safer digital environment and protect the rights of digital service users.
“The Rewards program, which may stimulate addictive behavior, could potentially have negative effects on the physical and mental health of users. This is of particular concern for minors, who may have a heightened sensitivity to such features.”
European Commission
The European Commission opened a probe into TikTok in February to look into the app’s potential breaches of the DSA in four key areas: protection of minors, advertising transparency, data access for researchers, and risk management of addictive design and harmful content. Under the DSA, the Commission may fine companies up to 6% of their global turnover if they are found to have breached their obligations.
The Commission has been closely monitoring TikTok’s adherence to the DSA since it was classified as a ‘Very Large Online Platform’ (VLOP) in April 2023. VLOPs, which are platforms with more than 45 million monthly active users in the EU, are subject to stricter regulations under the DSA compared to smaller platforms.
With TikTok’s commitment to withdraw its Rewards program, the Commission has closed its formal proceedings against TikTok initiated in April. Notably, this is the first case closed under the DSA and the first instance of the Commission accepting commitments from a designated online platform.
The case, however, is only in relation to TikTok’s failure to provide a risk assessment report for the TikTok Lite Rewards program. The EU said the first formal proceedings against TikTok, which were opened in February, remain active as the investigation continues.
The European Commission noted that formal proceedings under the DSA are also open against other major platforms, including X (formerly Twitter) since December 2023, with preliminary findings issued on July 12, AliExpress since March 2024, and Meta for various investigations in April and May 2024.
The Commission also stressed that it will continue to monitor TikTok’s compliance with the DSA and is currently investigating other concerns raised about the platform. TikTok has faced increasing scrutiny from regulators worldwide over data privacy and safety concerns. The company has repeatedly insisted that it prioritizes user safety and is committed to complying with local laws and regulations.
Last year, the Irish Data Protection Commission imposed a €345 million (USD $378 million) fine on TikTok for violating children’s privacy regulations. In the UK, TikTok was fined £12.7 million ($16 million) in April 2023 for various data protection breaches, including the misuse of children’s data.
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