TikTok's point reward system under investigation! The EU is concerned about the impact on minors becoming "addicted to points," facing possible suspension orders.

In the strict digital service regulatory environment in Europe, the European Commission has launched a formal investigation into the social media giant TikTok. This investigation focuses on TikTok Lite and its "Missions and Rewards" program launched in France and Spain, examining potential violations of the Digital Services Act (DSA).

TikTok Financial Gamification: EU Launches Investigation

The European Commission announced on 4/22 that it has launched an investigation into TikTok to verify whether TikTok Lite has complied with the strict requirements of the Digital Services Act (DSA). According to the DSA, platforms like TikTok, due to their large user base, are classified as very large online platforms and are required to conduct comprehensive risk assessments before introducing new features and implement measures to mitigate systemic risks.

TikTok Lite May Lead to Addiction

The European Commission is concerned about the "Missions and Rewards Program" feature of TikTok Lite. This feature encourages users to earn points through various activities such as watching videos and inviting friends, which can later be exchanged for rewards. European authorities are worried about the potential addictive nature of these missions and the lack of effective age verification mechanisms, especially considering the young user demographic of TikTok.

Request for TikTok to Submit Risk Assessment Report

The investigation will examine whether TikTok conducted a risk assessment before launching the feature and submit a report. Additionally, the investigation will evaluate the measures TikTok has taken to mitigate the identified risks, especially those that could affect the mental health of minors through potentially addictive behaviors.

TikTok Faces Potential Fines

TikTok is required to submit the necessary risk assessment report and other information regarding TikTok Lite. Failure to comply could result in fines for TikTok.

TikTok was designated as a very large online platform in April 2023, as its active users in the EU exceed 45 million, making it subject to the DSA. The ongoing scrutiny of TikTok Lite adds to the regulatory challenges it faces.

Crypto Community Also Embraces Points

In recent years, the cryptocurrency community has been actively engaged in behaviors such as earning points and participating in airdrops. In the loosely regulated cryptocurrency world, addictive behaviors driven by monetary incentives have long been prevalent. However, in the Web2 world, regulatory concerns are more extensive and directly investigated compared to the Web3 world.