Background on TikTok and ByteDance
TikTok, a popular social media application, has been accused by the European Union’s technology regulators of violating community online content standards. This puts its owner, ByteDance, at risk of a fine amounting to 6% of its global revenue. ByteDance, a Beijing-based internet technology company, acquired Musical.ly in 2017 and later merged it into TikTok, transforming it into the global phenomenon we know today.
EU’s Investigation and Allegations
The European Commission initiated an investigation in February of the previous year, resulting in preliminary conclusions sent to TikTok. The Digital Services Act (DSA) requires online platforms to do more in combating illicit and harmful content, as well as providing information about ads.
- TikTok failed to provide necessary information about ad content, target audience, and advertiser identity, according to the Commission.
- The DSA mandates transparency in online advertising, ensuring users know who is paying for ads and how their attention is being targeted.
Henna Virkkunen, the EU’s technology chief, emphasized the importance of transparency in online advertising for safeguarding public interest.
TikTok’s Response
Facing a second DSA investigation regarding its handling of election-related risks, TikTok rejected the Commission’s conclusions.
“While we support the objectives of the regulation and continue to improve our advertising transparency tools, we do not agree with some of the Commission’s interpretations and note that guidance is offered through preliminary conclusions rather than clear, public directives,” said a TikTok spokesperson.
TikTok stressed the necessity of equal treatment and consistent application of regulations.
Key Questions and Answers
- What is the issue? TikTok has been accused by EU regulators of failing to comply with online content standards, specifically regarding ad transparency.
- What are the potential consequences for TikTok? ByteDance could face a fine equivalent to 6% of its global revenue.
- What does the DSA require? The Digital Services Act mandates online platforms to combat illicit content, provide ad information, and ensure transparency in targeting users.
- How did TikTok respond? TikTok disagreed with some of the Commission’s interpretations and emphasized the need for clear, public guidelines.
