On August 5, the European Commission announced that TikTok has committed to permanently removing its TikTok Lite app's reward feature in Europe.

The European Commission stated that any violation of TikTok's commitments could lead to immediate penalties under the Digital Services Act (DSA), with potential fines reaching up to 6% of the company's global annual revenue.

ByteDance, TikTok's parent company, is the first to make such commitments to the EU Commission, which will closely monitor compliance with these legal requirements.

European Digital Commissioner Thierry Breton expressed satisfaction with the removal of the reward program, emphasizing that young Europeans' attention should not be exploited by social media.

The European Commission temporarily suspended the reward system on April 24, 2024, due to concerns over potential addiction effects.

The controversial reward feature allowed users to earn virtual points for watching videos and engaging with content, which could then be exchanged for gift cards, raising concerns about its impact on young users.

The investigation into TikTok's reward system was initiated in April 2024, following concerns that the program could lead to addictive behaviors in young users.

Margrethe Vestager, the European Commissioner for Competition, highlighted that the decision sends a clear message to the social media sector regarding compliance with regulations.

A separate ongoing DSA investigation is examining whether TikTok's main app algorithms are designed to create addictive 'rabbit-hole effects.'

The EU Commission criticized TikTok for launching the rewards program without adequately assessing potential risks to users' physical and mental health.

The EU has also initiated formal proceedings against other tech companies, including X, Meta, and AliExpress, for suspected breaches of the DSA.

The DSA allows for fines of up to 6% of TikTok's global annual turnover without requiring a new investigation for non-compliance.