Amidst a legal investigation by the European Commission, TikTok, a Chinese-owned video-sharing platform, said it is voluntarily halting the incentives programme for its new TikTok Lite app.
TikTok said it is “voluntarily suspending” the rewards feature in the area to alleviate concerns in a statement that was published on X yesterday.
Earlier on Monday, the commission had threatened to force TikTok to stop using the rewards function unless the business could prove there was no risk of serious harm within 48 hours.
Launched in two EU nations a few weeks ago, the light version of the TikTok app featured a reward system that gave users a daily little payment for taking part in films.
The Digital Services Act (DSA), the EU’s redesigned online governance and content moderation guidelines, requires TikTok to take legal responsibility for reducing systemic hazards related to mental health and child safety.
However, when the bloc’s enforcers showed there, it was unable to submit a risk assessment report on the feature.
This is significant because, should it be determined that the corporation violated EU regulations, it might be subject to stiff fines under the DSA, which could equal up to 6% of its yearly global turnover.
TikTok posted on X: “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.”
We earlier reported that TikTok Shop is levelling up via partnerships with luxury resale companies, to allow Gen Z to purchase ‘Belgium’ used designer handbags, like Louis Vuitton monogram shoulder bag or a Bottega tote, on the platform.
