EU Accuses TikTok of Breaking Digital Rules on Advertisements

Strategic Insights -

The European Commission has found that Chinese-owned social media platform TikTok is not transparent enough about its advertisements, marking the first time the company has been accused of breaching the Digital Services Act (DSA). The commission's decision follows a probe into the company's advertising practices, which has raised concerns over the spread of scam adverts and hybrid threat campaigns. TikTok has stated that it is reviewing the commission's findings and remains committed to complying with the DSA.

Key Takeaways:

  • The EU's digital chief, Henna Virkkunen, stated that TikTok is not complying with the DSA in key areas of its advertisement repository, preventing the full inspection of the risks brought about by its advertising and targeting systems.
  • TikTok was accused of not providing necessary information about the content of advertisements, the users targeted by the ads, and who paid for the advertisements.
  • The EU hopes that an ads library is easily accessible to researchers and civil society to detect scam adverts and hybrid threat campaigns.
  • The DSA gives the EU the power to hit companies with fines as high as six percent of their global annual revenues.
  • TikTok is still under investigation in the same probe launched in February 2024 for potential impacts on young people.
  • A key worry is the so-called "rabbit hole" effect, which occurs when users are fed related content based on an algorithm, in some cases leading to more dangerous content.

Statistics:

  • The DSA has stricter rules for the biggest platforms, demanding tech giants do more to counter the spread of illegal and harmful content as well as disinformation.
  • The EU has accused multiple tech companies of breaching the DSA, including X, owned by US tech billionaire Elon Musk, over its blue checkmarks for certified accounts.
  • The DSA gives the EU the power to impose fines up to six percent of a company's global annual revenues.

Sources:

  • European Commission statement cited in the article.
  • Statement from Henna Virkkunen, the EU's digital chief, cited in the article.
  • TikTok statement cited in the article.
  • Article in The European Union Times (not specified)