TikTok might face huge fine in EU probe over child safety and transparency

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The European Union, a persistent challenge for tech giants, is once again making its presence felt. A recent report indicates that Apple might be facing a substantial fine (potentially reaching $539 million) imposed by the EU for creating “unfair trading conditions” for its rivals. Now, it seems TikTok is also under the EU’s scrutiny. Reuters reports that the European Union will launch an investigation into whether TikTok violated online content regulations designed to safeguard children and ensure transparent advertising. EU industry chief Thierry Breton decided after reviewing TikTok’s risk assessment report and its responses to information requests. If found guilty, TikTok could face a substantial fine.

The EU’s Digital Services Act (DSA), which became effective for all online platforms on February 17, mandates that notably large online platforms and search engines take additional measures to combat illegal online content and protect public safety.If TikTok is found to have violated the rules outlined in the DSA, ByteDance, the owner of TikTok, could potentially face fines amounting to up to 6% of its global turnover. For context, statistics show that TikTok generated an estimated $9.4 billion in revenue in 2023. This could potentially result in a fine of around $500 million.

TikTok stated that it remains committed to collaborating with experts and the industry to ensure the safety of young people on its platform. The company also expressed its readiness to provide detailed explanations of its efforts to the European Commission. A TikTok spokesperson said:

TikTok has pioneered features and settings to protect teens and keep under 13s off the platform, issues the whole industry is grappling with.

The European Commission mentioned that the investigation will look into TikTok’s system design, including its algorithmic features, which might encourage addictive behaviors and lead to what’s known as the rabbit hole effect.

The rabbit hole effect is a metaphor that describes the phenomenon of becoming deeply engrossed in something, typically to the point of losing track of time or neglecting other responsibilities. It’s often used in the context of the internet, where algorithms and user engagement strategies can keep people clicking on related content for hours on end.

For reference, research shows that just on Android phones, we spent a whopping 2.3 trillion hours on social media in 2023, and TikTok is the king of the social media jungle.

The European Commission will also check if TikTok has set up measures that are suitable and proportional to guarantee a high level of privacy, safety, and security for minors. Apart from the concern for protecting minors, the Commission is examining whether TikTok offers a reliable database of ads on its platform, enabling researchers to analyze potential online risks. Stay tuned for updates.



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