Appears like one more challenging week ahead for TikTok.

With the U.S. seeking to push ahead a Senate vote that may possibly make a decision the fate of the app for its 170 million American customers, E.U. officials are also questioning one more TikTok initiative, which is seemingly developed to enhance usage in that area.

A couple of weeks back, The Information’s Kaya Yurieff reported that TikTok had launched a new providing in Spain, France, and various other nations, which successfully pays customers for utilizing the app.

As explained by Yurieff:

“[TikTok] is introducing a new app that will encourage customers to watch videos, invite mates to sign up and carry out other actions by awarding them points they can redeem as present cards or digital ideas to give creators. The app, named “Coin App” inside the business and “TikTok Lite” to the public, is developed to assistance TikTok increase development amongst persons aged 18 and older.”

At the time, when I study this update, I assumed there may possibly be anything much more to it, as TikTok truly launched its separate “TikTok Lite” app back in 2018. So it wouldn’t be a new app, as such, but a new plan, and it seemed like there would be much more details to come as to how the initiative would function.

But primarily based on screenshots, this is precisely how TikTok Lite’s rewards plan performs.

The prompts right here inform customers that they can earn points by discovering and liking videos in the app. There’s also a meter that fills up to let you know how you are progressing towards point targets, gamifying usage of the app.

And evidently, E.U. investigators have observed sufficient to raise their personal issues, with the E.U. nowadays announcing a formal probe into the TikTok Lite plan, which it believes may possibly be in violation of its  Digital Solutions Act (D.S.A.).

As per E.U. Commission:

“The Commission has opened a formal proceeding to assess irrespective of whether [TikTok] may possibly have breached the DSA when launching TikTok Lite in France and Spain. Beneath the DSA, designated Extremely Massive On the web Platforms are obliged to submit a threat assessment report, like measures to mitigate any prospective systemic dangers, prior to launching any new functionalities that are most likely to have a important effect on their systemic dangers. The Commission is concerned that the “Task and Reward Program” of TikTok Lite, which enables customers to earn points even though performing specific “tasks” on TikTok – such as watching videos, liking content material, following creators, inviting mates to join TikTok, and so on. – has been launched with out prior diligent assessment of the dangers it entails, in specific these connected to the addictive impact of the platforms, and with out taking efficient threat mitigating measures.”

E.U. investigators are in particular concerned about the prospective impacts of the plan on young children, as it would incentivize much more usage, with youngsters successfully becoming paid to retain scrolling in the app.

Which appears fairly terrible, and not a terrific appear for TikTok general.

The E.U. Commission says that it may possibly seek to suspend the plan in the quick term, even though violations of the D.S.A. can also expense businesses up to six% of their worldwide income.

TikTok will now have till April 24th to outline its response to the claims.

Genuinely, if this is the framework that TikTok is going with to reignite interest in the app, then it is a fairly desperate measure, which is most likely to trigger sanctions against the app.

According to Yurieff, TikTok has observed a slowdown in usage of late. The platform at the moment has about 136 million customers in Europe, a substantial chunk of its general audience, although its momentum has eased as other platforms have supplied comparative functions like Instagram Reels and YouTube Shorts.

Which is why it is seeking to new initiatives to increase interest as soon as once again, and the proposed outline of this plan is questionable, on a variety of fronts.

Generally, if this is what TikTok’s providing, it is a difficulty, that will see it punished as a outcome. But possibly, TikTok has some option explanation, which it will present to European authorities.   

Either way, it is one more headache for the app, in particular as it is attempting to argue that it is not seeking to influence user behavior.