Brussels is intensifying its scrutiny of TikTok, the popular social media platform owned by Chinese company bytedance. The European Commission has issued a preliminary assessment indicating that TikTok may be in violation of the EU’s Digital Services Act (DSA) due to non-transparent advertising practices.

Key Concerns Raised by the european Commission:

• Insufficient Advertiser Data: The commission alleges that TikTok fails to provide adequate information about the content of advertisements on its platform.
• Lack of Publicly Searchable Ad Registry: TikTok does not maintain an accessible advertisement registry, hindering researchers and civil society from monitoring ad content.
• Limited Functionality of Ad Archive: The platform’s existing ad archive lacks robust search capabilities, diminishing its utility for public oversight.

The European Commission emphasizes the importance of advertising transparency for safeguarding public interests. Henna Virkkunen, Commission Vice President, stated:

Transparency in online advertising-whoever pays and how the target groups woudl be addressed-was essential for the protection of public interest. Whether we defend the integrity of our democratic elections, protect public health or protect consumers from fraudulent advertising, the citizens have a right to know who is behind the messages they see.

Henna Virkkunen, commission vice President

TikTok’s Response

TikTok is pushing back against the EU’s preliminary findings. A spokeswoman for the company told the German Press Agency:

although we support the goals of the regulation and further improve our instruments for advertising transparency, we do not agree with some interpretations of the Commission and find that the guidelines are more likely to be given in the form of preliminary findings than in the form of clear, public guidelines.

TikTok Spokeswoman

The company plans to review the commission’s assessment and continue engaging in dialog with EU authorities.

Potential Penalties

If found in violation of the DSA, TikTok could face significant financial penalties. The European commission has indicated that the company risks a fine of up to 6% of its total global annual turnover.

Background: Previous EU Investigations

This is not the first time TikTok has faced scrutiny from the EU. Last year, the commission launched an examination into the platform’s handling of political advertising during the Romanian presidential elections. The EU alleged that TikTok failed to properly identify content promoting a pro-Russian and ultra-right candidate as political advertising. A Romanian court later invalidated the election, citing suspected Russian interference and financial irregularities.

Broader Context: DSA enforcement

TikTok is not the only social media platform under the EU’s microscope. The commission has also initiated DSA-related proceedings against X (formerly Twitter), owned by Elon Musk, and Meta, the parent company of Facebook and Instagram.These investigations focus on issues such as hate speech and compliance with the DSA’s requirements.