EU Investigators Launch Probe into TikTok’s Latest Growth Initiative

Seems like one other powerful week forward for TikTok.

With the U.S. seeking to push forward a Senate vote which will determine the destiny of the app for its 170 million American customers, E.U. officers are additionally questioning one other TikTok initiative, which is seemingly designed to extend utilization in that area.

A few weeks again, The Data’s Kaya Yurieff reported that TikTok had launched a brand new providing in Spain, France, and several other different nations, which successfully pays customers for utilizing the app.

As defined by Yurieff:

“[TikTok] is introducing a brand new app that can encourage customers to look at movies, invite buddies to enroll and carry out different actions by awarding them factors they’ll redeem as reward playing cards or digital suggestions to provide creators. The app, known as “Coin App” throughout the firm and “TikTok Lite” to the general public, is designed to assist TikTok increase progress amongst individuals aged 18 and older.”

On the time, once I learn this replace, I assumed there could also be one thing extra to it, as TikTok really launched its separate “TikTok Lite” app again in 2018. So it wouldn’t be a brand new app, as such, however a brand new program, and it appeared like there can be extra data to come back as to how the initiative would operate.

However based mostly on screenshots, that is precisely how TikTok Lite’s rewards program works.

The prompts right here inform customers that they’ll earn factors by discovering and liking movies within the app. There’s additionally a meter that fills as much as let you understand how you’re progressing in direction of level targets, gamifying utilization of the app.

And evidently, E.U. investigators have seen sufficient to lift their very own considerations, with the E.U. immediately saying a proper probe into the TikTok Lite program, which it believes could also be in violation of its  Digital Companies Act (D.S.A.).

As per E.U. Fee:

“The Fee has opened a proper continuing to evaluate whether or not [TikTok] might have breached the DSA when launching TikTok Lite in France and Spain. Underneath the DSA, designated Very Massive On-line Platforms are obliged to submit a threat evaluation report, together with measures to mitigate any potential systemic dangers, previous to launching any new functionalities which can be prone to have a important influence on their systemic dangers. The Fee is anxious that the “Job and Reward Program” of TikTok Lite, which permits customers to earn factors whereas performing sure “duties” on TikTok – resembling watching movies, liking content material, following creators, inviting buddies to hitch TikTok, and so forth. – has been launched with out prior diligent evaluation of the dangers it entails, specifically these associated to the addictive impact of the platforms, and with out taking efficient threat mitigating measures.”

E.U. investigators are particularly involved in regards to the potential impacts of this system on kids, as it could incentivize extra utilization, with youngsters successfully being paid to maintain scrolling within the app.

Which appears fairly unhealthy, and never an awesome search for TikTok total.

The E.U. Fee says that it might search to droop this system within the instant time period, whereas violations of the D.S.A. may value corporations as much as 6% of their world income.

TikTok will now have till April twenty fourth to stipulate its response to the claims.

Actually, if that is the framework that TikTok goes with to reignite curiosity within the app, then it’s a reasonably determined measure, which is prone to set off sanctions in opposition to the app.

In line with Yurieff, TikTok has seen a slowdown in utilization of late. The platform at present has round 136 million customers in Europe, a major chunk of its total viewers, although its momentum has eased as different platforms have supplied comparative features like Instagram Reels and YouTube Shorts.

Which is why it’s seeking to new initiatives to spice up curiosity as soon as once more, and the proposed define of this program is questionable, on varied fronts.

Mainly, if that is what TikTok’s providing, it’s an issue, that can see it punished because of this. However possibly, TikTok has some different clarification, which it is going to current to European authorities.   

Both approach, it’s one other headache for the app, particularly because it’s attempting to argue that it’s not seeking to affect person conduct.