TikTok has suspended its rewards functions in TikTok Lite, a new app catering to regions with slower internet speeds. This decision follows concerns raised by the European Commission regarding the app’s ‘Task and Reward Program,’ which incentivises user engagement with rewards like Amazon vouchers and PayPal gift cards. Particularly, worries over potential addictive effects, especially for children, due to inadequate age verification mechanisms have been highlighted by the EU executive.
Our children are not guinea pigs for social media.
I take note of TikTok’s decision to suspend the #TikTokLite “Reward Program” in the EU.
The cases against TikTok on the risk of addictiveness of the platform continue.#DSA ensures the safety of our 🇪🇺 online space. https://t.co/J1oI6zNI97
In response to the Commission’s apprehensions, TikTok stated its commitment to engaging constructively with regulators and suspended the rewards functions. However, Commissioner Thierry Breton emphasised that concerns regarding TikTok’s platform addictiveness persist, along with an ongoing investigation to determine TikTok Lite’s compliance with the Digital Services Act (DSA). The DSA, which came into force recently, imposes regulations on how online platforms handle illegal and harmful content, with TikTok falling under its jurisdiction as a very large online platform (VLOP).
Under the DSA, TikTok was required to conduct and submit a risk assessment before launching the Lite app. However, the Commission’s proceedings revealed TikTok’s initial failure to meet this requirement. Despite missing the initial deadline, TikTok eventually submitted the risk assessment, indicating compliance with the Commission’s demands. France’s digital minister and MEPs have welcomed TikTok’s suspension decision, signalling a positive response from the EU authorities regarding the company’s efforts to address regulatory concerns.
ByteDance, the company behind TikTok, has submitted a long-awaited risk assessment for its TikTok Lite service, recently launched in France and Spain, following regulatory threats of fines and potential bans from the European Commission. Regulators are concerned about the addictive nature of TikTok Lite, particularly its rewards system for users, and claim ByteDance didn’t complete a full risk assessment on time.
ByteDance now has until 24 April to defend itself against regulatory action, including possibly suspending the rewards program. Failure to comply with regulations could result in fines of up to 1% of its total annual income or periodic penalties of up to 5% of its average daily income under the Digital Services Act (DSA).
Meanwhile, in the US, legislation is swiftly advancing through Congress, requiring ByteDance, the Chinese company that owns TikTok, to divest its ownership within a year or face a US ban. The Senate has passed this measure as part of a foreign aid package, sending it to President Joe Biden for his expected approval. ByteDance will have nine months initially, with a possible three-month extension, to complete the sale, though legal challenges could cause delays.
The Senate has passed a foreign aid package that includes a bill mandating China-based company ByteDance to sell TikTok within a year or face a US ban on the platform. Having cleared both chambers of Congress, the legislation is now headed to President Joe Biden, who has committed to signing it into law. ByteDance will have an initial nine months to finalise a sale, with a possible three-month extension based on progress, though legal challenges could delay enforcement.
The bill’s successful passage through the Senate was achieved through strategic manoeuvring in the House, where it was included in a high-priority foreign aid package. This move compelled the Senate to address the TikTok issue earlier than anticipated. By extending the divestment timeline, more support was garnered in the Senate, resulting in a vote of 79-18 in favour of the bill.
Lawmakers and intelligence officials have voiced concerns over TikTok’s ownership by a China-based company. They cite potential data security risks due to China’s national security law and fear that the Chinese government’s influence could impact US user experiences.
Senate Commerce Committee Chair Maria Cantwell stressed that the legislation aims to prevent foreign adversaries from conducting espionage and harming vulnerable Americans, not to punish specific companies.
Senate Intelligence Committee Chair Mark Warner highlighted worries about Chinese companies owing allegiance to the Chinese government and potential covert manipulation of social media platforms. He dismissed TikTok’s proposed data governance solution, Project Texas, as inadequate. Despite concerns among TikTok users, Warner assured that the legislation is not about silencing voices but addressing critical national security issues.
President Biden has expressed intent to promptly sign the bill into law to facilitate aid to Ukraine, while TikTok has signalled readiness to challenge the law in court if passed.
Kyrgyzstan has banned TikTok following security service recommendations to safeguard children. The decision comes amid growing global scrutiny over the social media app’s impact on children’s mental health and data privacy.
The Kyrgyz digital ministry cited ByteDance’s failure to comply with child protection laws, sparking concerns from advocacy groups about arbitrary censorship. The decision reflects Kyrgyzstan’s broader trend of tightening control over media and civil society, departing from its relatively open stance.
This decision stems from legislative text approved last summer aimed at curbing the distribution of ‘harmful’ online content accessible to minors. Such content encompasses material featuring ‘non-traditional sexual relationships’ and those that undermine ‘family values,’ as well as promoting illegal conduct, substance abuse, or anti-social behaviours. Chinese officials have not publicly commented on this decision, although in March, Beijing accused the US of ‘bullying’ over similar actions against TikTok.
The House of Representatives overwhelmingly voted 360 to 58 on a bill that could result in the unprecedented action of shutting down TikTok, a popular social media platform, over concerns related to Chinese influence and data privacy. The bill, authored by Texas Republican representative Michael McCaul, aims to protect Americans, especially children, from what he described as the ‘malign influence of Chinese propaganda’ on TikTok, which he referred to as a ‘spy balloon in Americans’ phones.’
The legislation was passed as part of a broader foreign aid package put forth by House Republican speaker Mike Johnson, which includes support for Ukraine, Israel, and Taiwan. The updated bill extends the divestment period for TikTok’s parent company, ByteDance, from six months to a year, a move supported by Senate Commerce Committee chair Maria Cantwell to allow sufficient time for potential buyers to negotiate a deal.
Following the House’s passage of the bill, TikTok voiced disappointment, emphasising its substantial economic contribution to the US and arguing against what it sees as an infringement on free speech rights. The bill’s broader implications on data privacy and surveillance practices have also drawn criticism from other tech industry figures, including the president of Signal, who warned of potential repercussions extending beyond TikTok to other social media platforms. Despite these concerns, President Joe Biden has indicated his intention to sign the bill into law if it passes the Senate, aligning with his previous statements and ongoing scrutiny of TikTok’s operations.
European regulators have demanded a risk assessment from TikTok within 24 hours regarding its new app, TikTok Lite, recently launched in France and Spain. The European Commission, under the Digital Services Act (DSA), is concerned about potential impacts on children and users’ mental health. This action follows an investigation initiated two months ago into TikTok for potential breaches of the EU tech rules.
Thierry Breton, the EU industry chief, emphasised the need for TikTok to conduct a risk assessment before launching the app in the 27-country EU. The DSA requires platforms to take stronger actions against illegal and harmful content, with penalties of up to 6% of their global annual turnover for violations. Breton likened the potentially addictive and toxic nature of ‘social media lite’ to ‘cigarettes light,’ underlining the commitment to protecting minors under the DSA.
TikTok Lite, targeted at users aged 18+, includes a ‘Task and Reward Lite’ program that allows users to earn points by engaging in specific platform activities. These points can be redeemed for rewards like Amazon vouchers, PayPal gift cards, or TikTok coins for tipping creators. The Commission expressed concerns about the app’s impact on minors and users’ mental health, particularly potential addictive behaviours.
Why does it matter?
TikTok has been directed to provide the requested risk assessment for TikTok Lite within 24 hours and additional information by 26 April. The Commission will analyse TikTok’s response and determine the next steps. TikTok has acknowledged the request for information and stated that it is in direct contact with the Commission regarding this matter. Additionally, the Commission has asked for details on measures implemented by TikTok to mitigate systemic risks associated with the new app.
TikTok’s efforts to separate its US operations and user data from its Chinese parent company, ByteDance, have been scrutinised, as the following reports allege continued collaboration between the two entities. Despite implementing Project Texas, which aimed to enhance data security and independence, former employees claim that data-sharing practices persisted, with US user data being regularly sent to ByteDance executives in China.
Under Project Texas, US user data was supposed to be stored on Oracle’s cloud infrastructure. Still, former employees suggest that the reality differed, with a ‘stealth chain of command’ enabling continued collaboration between US-based staff and ByteDance executives. Allegations of ongoing control from ByteDance’s top management raise questions about TikTok’s claimed independence.
These revelations have significant implications, particularly amidst Congressional efforts to pressure ByteDance to sell TikTok. The House has already passed a bill threatening to ban TikTok unless it severs ties with its parent company. However, TikTok CEO Shou Zi Chew maintains the company’s autonomy, emphasising that American entities store and oversee American data.
Why does it matter?
While some former employees downplay concerns about TikTok’s connections to ByteDance, recent reports suggest that Project Texas may not have effectively insulated US operations from Chinese influence. As scrutiny intensifies, TikTok faces renewed scrutiny over its data practices and the extent of its independence from ByteDance.
UK MPs urge the government to develop a TikTok strategy to tackle misinformation targeting young people. A cross-party committee emphasises the need for the government to adapt to new platforms like TikTok, which have become significant sources of news for the youth. The recommendation is part of a broader report advocating for the use of trusted voices, such as scientists and doctors, to combat conspiracy theories and misinformation spreading on social media.
Data from Ofcom reveals that TikTok is cited as the leading news source for one in 10 individuals in the UK aged 12 to 15, while 71% of 16 to 24-year-olds prefer social media over traditional news websites. TikTok welcomes the suggestion for government engagement on social media platforms, highlighting the rapid evolution of information sources and audience habits in the digital age.
The committee stresses the importance of broadcasters being active on social media to counter disinformation effectively. The government’s ban on TikTok from official electronic devices underscores security concerns, although some departments still utilise the platform. MPs advocate for a more transparent approach from the government, urging it to leverage experts and boost trust by publishing evidence used in policymaking, particularly in areas susceptible to misinformation.
Lawmakers in the US Senate Commerce Committee are considering extending the deadline for TikTok’s parent company, ByteDance, to divest the popular short video app used by millions of Americans. The US House of Representatives previously voted overwhelmingly to give ByteDance approximately six months to sell TikTok’s US assets or face a ban. Senate Commerce Committee chair Maria Cantwell has expressed support for extending the deadline to one year, suggesting it could enhance the likelihood of a successful divestiture.
Discussions about the possibility of a one-year deadline extension come amid ongoing deliberations among congressional leaders. Cantwell indicated plans to strategise with Senate Democratic Leader Chuck Schumer and Senate Intelligence Committee chair Mark Warner. Despite the House’s decisive vote, Cantwell emphasised the Senate’s intent to refine the legislation for firmer legal grounding, considering previous unsuccessful attempts to ban TikTok under the Trump administration and at the state level.
Senate Republican leader Mitch McConnell has joined the call for divestiture, citing national security concerns and labelling TikTok as a significant strategic threat. However, TikTok has vigorously defended itself, asserting that a ban would infringe upon the First Amendment rights of its 170 million American users. While concerns persist regarding potential data sharing with China, TikTok maintains its commitment to safeguarding US data, having invested over $1.5 billion in data protection measures and storage infrastructure within the country.
The US Senate Republican Leader Mitch McConnell is advocating for legislation that would compel TikTok’s parent company, China’s ByteDance, to divest the popular short video app, citing security threats to the US, which include calling TikTok ‘America’s greatest strategic rival.’
Senate leaders are now considering bipartisan measures to address the situation, while TikTok insists it has never shared American user data with China and has invested heavily in protecting and storing US data domestically.
Why does it matter?
TikTok’s future is sparking heated debate in Washington, with national security and First Amendment concerns taking centre stage. McConnell’s involvement may rekindle efforts to pass legislation that could ban the app. Notably, Senate Majority Leader Chuck Schumer also views TikTok legislation as a critical November pre-election priority.
