How the EU used its Digital Services Act to rein in TikTok Lite

You most likely noticed the information that TikTok’s time could possibly be up within the U.S., with a nine-month countdown triggered by the signature of a bill that will require TikTok’s mum or dad firm ByteDance to divest the app by Joe Biden. However whereas the U.S. TikTok ban might seemingly be batted down in courtroom, an equally consequential choice has hit the app in Europe.

On Monday, the European Union stated it was opening an investigation into TikTok underneath its web safety-focused Digital Services Act (DSA) over the launch of TikTok Lite in France and Spain.

TikTok Lite is TikTok’s sister app, designed to reward customers for finishing up “duties” on TikTok—akin to liking movies, or inviting pals to hitch the app. These rewards are paid out within the type of in-app factors that can be utilized to purchase presents for creators on the primary TikTok app.

That warning to TikTok was handed down on Monday. By Wednesday, TikTok had acceded to the EU’s calls for.

In a statement, a TikTok spokesperson stated: “TikTok at all times seeks to interact constructively with the EU Fee and different regulators. We’re subsequently voluntarily suspending the rewards capabilities in TikTok Lite whereas we deal with the issues that they’ve raised.”

It’s the primary large win for the EU’s beefed up anti-tech regime, which may levy monumental fines for any breach of the DSA, says Mathias Vermeulen of European regulation agency and consultancy AWO. “It demonstrates that you just don’t want a sledgehammer to counter the dangers posed by platforms, akin to a compulsory divestment-or-ban invoice; as an alternative, you need to use far more exact instruments that higher respect freedom of speech,” he says. “For platforms, the period of shifting quick to interrupt issues is over now. ‘Measure twice, minimize as soon as’ is the brand new regulation of the land within the EU.”

The case towards TikTok is a sign that European authorities aren’t going to assume twice about utilizing the total power of energy they’ve been given underneath the DSA. And TikTok’s speedy response to neuter an app that it had seen as a key technique to purchase extra customers reveals that the European regulation has chew, in addition to bark.

“This most up-to-date investigation may be seen as an excellent case research to check the DSA, notably in terms of higher understanding systemic dangers,” says Catalina Goanta, affiliate professor in client regulation and tech at Utrecht College.

For Anupam Chander, professor of regulation at Georgetown College, the timing of the 2 approaches to crack down on TikTok invite comparisons—ones that don’t play favorably for the U.S. mannequin of outright banning. “The EU strategy is extra smart, placing religion in regulators reasonably than looking for to position religion in new homeowners,” he says. “In fact, we must be cautious about regulators as effectively. However the U.S. motion is extra draconian.”

However that doesn’t imply the EU motion is any much less impactful. “After apparently failing to do its homework TikTok now did the good transfer of proactively suspending TikTok Lite, thereby avoiding the doubtless extra stringent actions towards the corporate by the European Fee,” says Vermeulen.