The European Commission announced on Thursday that it had communicated its preliminary findings to TikTok following an in-depth investigation initiated in February of the previous year.
The EU executive body stated that TikTok has allegedly failed to meet its obligations under the Digital Services Act (DSA) by not establishing a publicly accessible advertisement repository. This repository is intended to enable researchers and individuals to effectively identify and scrutinize potentially fraudulent or misleading advertisements circulating on the platform.
The DSA mandates that online platforms implement more stringent measures to combat illegal and harmful content and provide greater transparency regarding advertising practices. Specifically, the Commission contends that TikTok is not providing essential details concerning the content of advertisements, the specific user demographics being targeted, and the identities of those funding the advertisements.
"Transparency in online advertising — who pays and how audiences are targeted — is essential to safeguarding the public interest," emphasized EU tech chief Henna Virkkunen in an official statement. This highlights the Commission's focus on ensuring accountability and preventing the spread of harmful or deceptive advertising through social media platforms.
TikTok, which is also currently under a separate DSA investigation concerning its risk management protocols related to elections, did not immediately respond to a request for comment sent via email.
As the next step in the regulatory process, TikTok will be granted the opportunity to review the Commission's findings and submit a written response before the EU watchdog issues a final decision on the matter.
This development underscores the EU's increasing scrutiny of major online platforms and its commitment to enforcing the new DSA rules aimed at creating a safer and more transparent online environment for European users. The potential for a fine equivalent to 6% of ByteDance's global turnover signifies the seriousness with which the EU is treating these alleged breaches.