The European Commission has fined TikTok for violating EU advertising transparency rules, citing the platform’s failure to provide an advertisement library detailing ad content and users being targeted.
EU Charges TikTok with Breach of Advertising Transparency Laws
The European Commission has ruled that TikTok, the Chinese-owned short video platform, is in breach of EU digital laws requiring transparency over who pays for advertising.
Launched in China in 2016, TikTok has become a global social media sensation with over a billion active users.
The app allows users to create and share short-form videos, often set to music or other audio.
Its algorithm-driven 'For You' page showcases content based on user preferences, making it easy for creators to go viral.
With its vast user base, TikTok has become an attractive platform for brands and advertisers, offering a unique opportunity for influencer marketing and product promotion.
The Commission’s Verdict and Potential Consequences
According to the commission, TikTok failed to provide an advertisement library, detailing ad content, users being targeted, and ‘who paid for the publicity.’ This lack of transparency makes it difficult for researchers to detect scam ads and coordinated campaigns that aim to disrupt elections.
The commission has launched a separate investigation into TikTok‘s suspected failure to guarantee election integrity in Romania, which is ongoing. If the preliminary verdict is upheld, TikTok could face a fine of 6% of its annual global turnover.
The EU’s Digital Services Act (DSA) and Its Requirements
The DSA obliges large internet companies to publish an advertisement library, which is seen as a vital tool for detecting scam ads and coordinated campaigns that aim to disrupt elections. However, TikTok did not provide this information nor allow the public to search for it.
Context of Romania’s Presidential Elections
Romania was plunged into political chaos last year when the first round of the presidential election was annulled after allegations that ‘Russia had mounted an online campaign to promote a far-right outsider who topped the poll.’ The European Commission launched an investigation into whether TikTok had failed to tackle risks to the integrity of Romania‘s presidential elections.
EU Officials’ Response
Thomas Regnier, a commission spokesperson, stated that the lack of transparency in TikTok‘s ad repository is not a definitive indicator of the company’s intentions regarding election interference. However, he added that the absence of an advertisement library makes it challenging for researchers to assess whether fake or scam ads were used during election campaigns.
TikTok’s Response and Ongoing Investigations
TikTok stated that it cooperates with relevant authorities around elections by providing dedicated channels for reporting content that may violate community guidelines or applicable regulations. The company also expressed disagreement with the commission’s interpretations of its ad transparency tools, stating that guidance is being delivered via preliminary findings rather than clear public guidelines.
The commission continues to investigate other suspected offenses under EU law, including whether TikTok‘s algorithms led users down ‘rabbit holes’ and had addictive effects. It is also investigating TikTok‘s age verification and child safety policies.
Next Steps for TikTok
TikTok now has the right to examine the commission’s investigation file and mount a defense. If the commission confirms its current view, TikTok could be fined up to 6% of its annual global turnover and be obliged to take measures to remedy the issue.
- theguardian.com | TikTok breached EU advertising transparency laws, commission says
