TikTok withdraws rewards scheme to end EU probe

The Chinese-owned video sharing platform TikTok has legally committed to permanently withdraw the Lite rewards feature from the European Union, the European Commission announced on Monday.

The commission ended its investigation into the rewards feature and closed the first case under the EU’s Digital Services Act (DSA), a powerful set of EU laws governing large online platforms.

The EU executive arm began an investigation of TikTok Lite over concerns linked to a feature that rewards users for watching videos and inviting friends to join the platform.

The commission also wanted TikTok to show it had complied with risk assessment and mitigation rules for large platforms under the DSA when launching the product.

The DSA requires large platforms to manage various risks, including the risk of illegal content being spread and the risk of harm to consumers, particularly minors.

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After the commission announced the probe, and threatened to order the app to suspend the rewards feature unless the company demonstrated within 48 hours that it poses no risk of serious harm.

TikTok had announced a voluntary suspension of the rewards scheme.

“Design features on platforms with addictive effects put the well-being of their users at risk, European Commission Executive Vice President Margrethe Vestager said in a statement.

“That’s why we have made TikTok’s commitments under the DSA legally binding,” she said, touting the decision from TikTok to withdraw the scheme as a clear message to the entire social media industry.”

A spokesman for the app company was pleased to have reached an amicable resolution and has now withdrawn the TikTok Lite rewards programme.