Social network TikTok will permanently remove its user rewards feature from the app used in France and Spain, following pressure from European regulators, the European Union (EU) and the Chinese company said on Monday.
TikTok Lite, a lighter version of the popular app that takes up less memory on smartphones and is designed to work with slower internet connections, arrived in France and Spain—the only EU countries where it was available—in April this year. Users over 18 could earn points for watching and liking videos, which they could exchange for goods such as vouchers or gift cards through a rewards program.
“We succeeded in permanently withdrawing the TikTok Lite Rewards program, which could have addictive effects,” said European Commissioner for Internal Market Thierry Breton.
TikTok Lite is a smaller version of the popular TikTok app, designed to use less memory on phones and to function with slower internet connections.
TikTok has pledged to remove the program from the 27-member bloc and not to implement “any other program that would circumvent this withdrawal,” the European Commission said in a statement.
This marks a major victory for the European Union’s Digital Services Act (DSA), a new comprehensive law that requires digital companies operating in the bloc to effectively monitor online content to protect users from harmful effects.
The Commission launched an investigation into the Lite app in April due to concerns about its “addictive” effects, which led TikTok to temporarily suspend the program.
The issue is now closed after TikTok, owned by the Chinese company ByteDance, entered into binding commitments.
Any breach of this commitment could lead to heavy penalties, according to the DSA.
“We will closely monitor TikTok’s compliance. Today’s decision also sends a clear message to the entire social media industry,” said European Commission Executive Vice President Margrethe Vestager.
TikTok confirmed it has “withdrawn” the rewards program.
“We always strive to work constructively with the European Commission and other regulators. TikTok is pleased to have reached an amicable resolution,” said a company spokesperson.
TikTok remains under investigation that began in February due to concerns that the social network may not be doing enough to address negative impacts on young people.
TikTok is among the 25 “very large” online platforms, including Facebook, Instagram, and YouTube, that must comply with stricter DSA rules from August 2023.
The rules also require digital retailers to effectively protect online buyers.
The DSA grants the EU the power to fine companies up to six percent of their global annual revenue.
Repeat offenders could see their platforms blocked in the EU.
Investigations are also ongoing for the social network X, formerly known as Twitter, as well as the Chinese online sales site AliExpress and Meta, which includes Facebook and Instagram.
TikTok is also facing a series of issues across the Atlantic. The Chinese company owning TikTok has filed a lawsuit to block a U.S. law requiring the app to be sold by next year or face a ban in the U.S. ByteDance claims this violates the First Amendment right to free speech.
The United States increased pressure on TikTok last week with a lawsuit accusing the app of violating children’s privacy by collecting data about them without parental consent when they use the platform.
TikTok said it disagrees with the claims and that the company has protective measures in place to ensure age-appropriate experiences.
