TikTok Shuts Down Lite Rewards Program

Although the U.S. Government has authorized the TikTok sell-off bill, the enterprise is also facing new challenges in Europe, with EU officials lately launching an investigation into TikTok’s most up-to-date initiative, which sees customers in some regions acquiring paid primarily based on how substantially they use the app.

Now, in response to that probe, TikTok has announced that it is shutting down its “TikTok Lite” rewards plan, which could see if face sanctions for violating the EU Digital Solutions Act (D.S.A.).

As reported by Reuters:

“TikTok will voluntarily suspend its new app TikTok Lite’s reward plan when it tries to resolve EU issues, the enterprise stated on X social media platform on Wednesday.”

As you can see in this instance, TikTok’s rewards plan allocates points to customers primarily based on actions undertaken in the app. The explainers right here (in French) inform customers that they can earn points by discovering and liking videos in the app.

EU officials have raised issues that the scheme could contribute to app addiction, specifically amongst younger customers, by incentivizing them to use the app additional usually. As such, all applications that could raise systemic dangers are essential to be submitted to EU officials for assessment prior to implementation.

For the reason that TikTok failed to do so, it could now be facing fines, with EU officials capable to implement penalties of up to six% of a company’s worldwide income for violations.

Which is why TikTok has speedily shut down the plan, as it functions with EU officials to address their issues.

It appears unlikely that TikTok will be hit with important fines as a outcome of this initiative, but at the similar time, EU investigators will be hunting to make an instance of the case, as a reminder of the new D.S.A. regulations.

And it is an additional headache for the enterprise, which, aside from the sell-off push in America, is also dealing with a slowdown in customers, and low interest in its ongoing purchasing push.

It is undoubtedly got its share of challenges to deal with, and it’ll be intriguing to see whether or not TikTok is penalized for the plan, and what the penalty may well be.