Whereas the US authorities accepted a invoice to promote TikTok, the corporate is going through new challenges in Europe, with EU officers lately launching an investigation into TikTok’s newest initiative, which noticed customers in some areas being paid primarily based on how a lot they use. App
Now, in response to that investigation, TikTok has introduced that it’s shutting down its “TikTok Lite” rewards program, which may see it face sanctions for violating the EU Digital Providers Act (DSA).
As reported by Reuters:
“TikTok will voluntarily droop its rewards program for its new app TikTok Lite whereas it tries to resolve EU issues, the corporate stated on Wednesday on the X social media platform.”
As you may see on this instance, TikTok’s rewards program assigns factors to customers primarily based on actions taken within the app. This is the explainer (in French). Let customers know they’ll earn factors by discovering and liking movies within the app.
EU officers have expressed concern that the scheme may contribute to app habit, notably amongst youthful customers, by encouraging them to make use of apps extra steadily. As such, all packages which will improve systemic danger should be submitted to EU officers for analysis earlier than implementation.
As a result of TikTok failed to take action, it may now face fines, with EU officers in a position to implement the fines. as much as 6% of an organization’s worldwide income for infringement.
That is why TikTok shortly shut down this system, as it really works with EU officers to handle their issues.
The initiative doesn’t seem to end in vital fines for TikTok, however on the identical time, EU investigators will wish to make an instance of the case as a reminder of the brand new DSA regulation.
And that is one other headache for the corporate, which, along with the shock of gross sales in America, can also be coping with a slowdown in customers and fewer curiosity in its ongoing purchasing push.
It definitely has had its share of points to take care of, and it will likely be attention-grabbing to see if TikTok is punished for this system and what the punishment may be.
