TikTok Agrees to Ditch Controversial Rewards Feature Under EU's Digital Services Act

Strategic Insights -

The European Union's executive commission announced that TikTok has agreed to remove a rewards feature from its platform that sparked concerns about potential excessive screen time, particularly among children. This decision marks the first outcome of a probe under the EU's Digital Services Act, which aims to regulate big digital platforms and create a "safe and accountable online environment." The commission has declared the withdrawal of the rewards feature, TikTok Lite, as legally binding, sending a strong message to the social media industry about the need to protect users' well-being. The investigation centered around concerns that TikTok had not adequately assessed the potential addictive effects of the rewards feature, especially on children, due to the suspected absence of effective age verification mechanisms on the platform.

Key Takeaways:

  • TikTok has agreed to remove its rewards feature, TikTok Lite, which allowed users to earn points for activities such as following creators, liking content, or inviting friends to join TikTok.
  • The feature was available to users aged 18 and above who had to verify their age, but the commission was concerned about the potential addictive effects of the rewards, particularly on children.
  • The rewards were capped at the equivalent of one euro ($1.09) per day, and users could watch up to an hour of videos daily to earn them.
  • The commission initiated an investigation in April due to concerns that TikTok had not adequately assessed the potential "addictive effect" of the feature.
  • The resolution of the TikTok Lite investigation does not impact an earlier probe launched against TikTok focusing on concerns about the protection of minors, advertising transparency, data access for researchers, and mitigating risks of "behavioural addiction" and harmful content.
  • The commission has declared the withdrawal of the rewards feature as legally binding, sending a strong message to the social media industry about the need to protect users' well-being.

Statistics:

  • One euro ($1.09) was the daily reward cap for users who earned points by watching videos or completing other tasks on TikTok Lite.
  • Up to one hour of daily video watching was the maximum amount of time users could spend to earn rewards on TikTok Lite.

Sources:

  • European Union's executive commission
  • Margrethe Vestager, European commissioner for digital affairs
  • TikTok