EU tech authorities accused social media app TikTok on Thursday of violating EU online content regulations, potentially subjecting its owner, ByteDance, to a fine of up to 6% of its worldwide sales. One of the reasons for this is because TikTok is not being sufficiently upfront about the advertisements that users of the video-sharing app see.
Following an inquiry that began in February of last year, the European Commission with the European Union tech regulators charged TikTok on Thursday with violating EU online content regulations.
According to the EU executive, which has 27 member states, TikTok has not published an advertisement repository that would enable users and researchers to identify fraudulent ads, as required by the Digital Services Act.
According to the European Commission, TikTok, which is owned by ByteDance of China, has not complied with the Digital Services Act’s requirement to create an advertisement repository that enables users and researchers to identify fraudulent adverts.
The Commission said ad databases are crucial for researchers to detect scam ads as well as so-called hybrid threat campaigns, co-ordinated information operations and phony ads, “including in the context of elections”.
The DSA mandates that online platforms take additional steps to address dangerous and unlawful content and disclose information about advertisements.
They come to realise that the DSA is a comprehensive set of regulations designed to safeguard users from dangers, such as disinformation linked to elections, and to purify social media sites.
According to the Commission, the business does not give the required details regarding the targeted users, the ad content, and the ad payers.
Platforms must be open and honest about digital advertisements, including telling users who paid for them and why they are seeing a particular ad.
According to the Commission, TikTok fails to provide essential details on the targeted users, ad content, and ad revenue.
It said that the database’s inability to conduct a thorough search for advertisements using this data “limits the usefulness of the tool.”
EU tech chief Henna Virkkunen said in a statement that “openness in online advertising — who pays and how audiences are targeted — is essential to safeguarding the public interest.”
TikTok, which also faces a second DSA probe examining its handling of risks relating to elections, pushed out against the Commission’s findings.
TikTok stated that it is still dedicated to fulfilling its DSA responsibilities and is examining the Commission’s conclusions.
A Tiktok spokesperson proclaims that while supporting the goals of the regulation and continuing to improve our ad transparency tools, they disagree with some of the Commission’s interpretations and note that guidance is being delivered via preliminary findings rather than clear, public guidelines. “A level playing field and consistent enforcement are essential.”
Tiktok spokesperson hence disagreed with some of the Commission’s interpretations and noted that guidance is being delivered via preliminary findings rather than clear, public guidelines, adding that it supports the regulation’s goals and is working to improve its ad transparency tools.
Henna Virkkunen, the commission’s executive vice-president for ICT sovereignty, security, and democracy, stated that the ad database’s flaws hinder a “full inspection” of the dangers presented by its ad targeting technologies.
“To protect the public interest, online advertising must be transparent about who pays and how audiences are targeted,” Ms. Virkkunen stated.
The watchdog may request that the social media company view the Commission’s documents and reply in writing before making a determination.
But before the Commission makes its final ruling, which could lead to a fine of up to 6% of the company’s yearly worldwide revenue, TikTok has an opportunity to respond.
In a second EU inquiry, TikTok is being examined for its failure to address threats to Romania’s presidential election, which had been disrupted last year, due to claims of electoral fraud and Russian interference.
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