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TikTok to Remove Rewards Feature Following EU Concerns Over Online Addiction
TikTok agrees to withdraw rewards feature due to EU concerns. First resolution under the EU's Digital Services Act. TikTok Lite users could earn rewards for specific activities.
This decision marks the first resolution of an inquiry under the EU's comprehensive Digital Services Act, which came into force in February with the goal of ensuring a secure and responsible online environment by overseeing major digital platforms.
Despite not admitting that the feature breached the Digital Services Act, TikTok has committed to its removal, according to officials. The commission has deemed this withdrawal as legally binding, sending a strong signal to the entire social media industry, stated Margrethe Vestager, the European Commission for digital affairs.
Vestager emphasised, "Design features on platforms with addictive effects put the well-being of their users at risk. That’s why we have made TikTok’s commitments under the DSA legally binding."
The case focusses on TikTok Lite, a version of the app designed for low-bandwidth use in Spain and France. This version allowed users to earn points by following producers, like content, and inviting others to join TikTok. These points could be redeemed for Amazon vouchers and gift cards through PayPal. TikTok noted that incentives were only accessible to users aged 18 and up, who were required to authenticate their age. Users could watch a maximum of one hour of videos daily to earn rewards, which were capped at the equivalent of one euro (US$1.09) per day.
In April, the commission initiated an investigation due to concerns that TikTok had not conducted a thorough evaluation, as required by the act, of the potential "addictive effect" of the feature, particularly concerning children, given the suspected lack of effective age verification mechanisms on TikTok.
The TikTok Lite investigation's resolution has no bearing on a previous investigation into TikTok, which focused on issues such as minor protection, advertising transparency, data accessibility for researchers, and risk mitigation associated with "behavioural addiction" and harmful content.
TikTok agrees to withdraw rewards feature due to EU concerns
First resolution under the EU's Digital Services Act
TikTok Lite users could earn rewards for specific activities
Source: AP NEWS