TIKTOK owner ByteDance faces the threat of hefty fines as the European Union prepares a probe under its strict new content moderation rules over concerns of risks to minors.
The European Commission will open an investigation into TikTok under the bloc’s new Digital Services Act (DSA) in the coming weeks over concerns that changes the firm made to comply with the new regulation are not enough to protect underage users, sources familiar with the matter said.
The DSA gives regulators unprecedented powers to take action against major tech companies for how they handle content on their platforms. Companies face fines of as much as 6 per cent of annual sales, or even risk being banned from the EU if they repeatedly break the rules.
EU regulators in December opened their first formal probe under the DSA into Elon Musk’s X to establish possible breaches in the way the platform handles illegal content and disinformation. The bloc last year singled out 19 online platforms and search engines, including X, Meta Platforms and Alphabet, as very large – those with more than 45 million monthly active users in Europe – and has been quizzing them for information. The EU has since also added three porn sites.
Spokespeople for TikTok and the commission did not immediately respond to a request for comment. The discussions are still ongoing and the EU may still decide against a full probe.
The EU has sent several requests for information to TikTok since the platform was designated, enquiring among others about what steps it is taken to protect minors, especially regarding the risks to mental health and physical health, and how its services are used by children.
More investigations are likely to be added as the EU has been quizzing all designated firms for more information over the last few months. Similar to TikTok, Meta’s Instagram has also been quizzed by the EU on what changes it is made to comply with the new rules and to assess and mitigate risks facing its under-age users. BLOOMBERG