EU Launches Formal Investigation into TikTok for Potential DSA Violations

Highlights

• EU industry chief Thierry Breton announces investigation into TikTok for suspected DSA breaches.
• TikTok could face fines up to 6% of its global revenue for non-compliance with the DSA.
• The probe will scrutinize TikTok’s algorithm and its impact on user engagement and minor protection.
• TikTok commits to cooperation with the European Commission, emphasizing minor safety.

The European Union is intensifying its regulatory oversight over major technology companies, with TikTok now coming under close examination.

As per a Reuters report, following a review of the popular social media platform’s risk assessment report and responses to information requests, the EU industry chief Thierry Breton has initiated a formal investigation into TikTok’s compliance with the Digital Services Act (DSA).

“Today we open an investigation into TikTok over a suspected breach of transparency & obligations to protect minors: addictive design & screen time limits, rabbit hole effect, age verification, default privacy settings,” Breton said on X.

“In the future, we hope to restore capabilities such as vision, motor function, and speech, and eventually expand how we experience the world,” Neuralink states on its website.

“Progress is good, and the patient seems to have made a full recovery, with neural effects that we are aware of. Patient is able to move a mouse around the screen by just thinking”, Musk said in a Spaces event on social media platform X.

EU’s Child Safety Policy

Implemented on February 17, the DSA obligates significant online platforms and search engines to adopt more stringent measures for removing illegal content online and safeguarding public safety.

TikTok, owned by ByteDance, faces the risk of incurring fines of up to 6% of its global revenue if found in breach of these regulations.

Considering TikTok’s reported revenue of $9.4 billion in 2023, the fines could potentially exceed $500 million.

TikTok has publicly committed to working alongside industry experts to prioritize the safety of its younger audience and has assured full cooperation with the European Commission’s inquiries.

TikTok’s Algorithm in Focus

The investigation will focus on TikTok’s system architecture, particularly its algorithmic operations that may promote excessive user engagement and the resultant “rabbit hole effect,” where users find themselves endlessly consuming related content.

Additionally, the European Commission aims to determine the adequacy of TikTok’s measures in maintaining privacy, safety, and security standards for underage users.

The inquiry will also assess TikTok’s transparency regarding its advertising database, enabling researchers to evaluate potential online hazards.

This move by the EU reflects its ongoing commitment to establishing fair competition and ensuring online platforms are accountable for user safety and data privacy.

FAQs

What prompted the EU to investigate TikTok?

The EU’s decision, led by Thierry Breton, was based on concerns over TikTok’s adherence to the Digital Services Act, focusing on transparency, minor protection, and user engagement practices.

What are the potential consequences for TikTok if found non-compliant?

TikTok could be fined up to 6% of its global turnover, which, based on its 2023 revenue, might amount to over $500 million, if it’s found violating the DSA regulations.

What specific aspects of TikTok’s operations are under scrutiny?

The investigation targets TikTok’s algorithmic features that could lead to addictive behaviors, known as the “rabbit hole effect,” along with its policies on age verification, privacy settings, and the protection of minors.

How has TikTok responded to the EU’s investigation?

TikTok has expressed its commitment to ensuring the platform’s safety for young users and pledged full cooperation with the European Commission’s investigation.

What does this investigation signify for online platforms operating in the EU?

This move underscores the EU’s dedication to enforcing the Digital Services Act, aiming to make online platforms like TikTok accountable for user safety and fair competition within the digital market.

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