Whereas the U.S. Authorities has authorised the TikTok sell-off invoice, the corporate can be going through new challenges in Europe, with E.U. officers not too long ago launching an investigation into TikTok’s newest initiative, which sees customers in some areas getting paid primarily based on how a lot they use the app.

Now, in response to that probe, TikTok has introduced that it’s shutting down its “TikTok Lite” rewards program, which might see if face sanctions for violating the E.U. Digital Companies Act (D.S.A.).

As reported by Reuters:

“TikTok will voluntarily droop its new app TikTok Lite’s reward program whereas it tries to resolve EU considerations, the corporate mentioned on X social media platform on Wednesday.”

As you may see on this instance, TikTok’s rewards program allocates factors to customers primarily based on actions undertaken within the app. The explainers right here (in French) inform customers that they will earn factors by discovering and liking movies within the app.

E.U. officers have raised considerations that the scheme might contribute to app dependancy, particularly amongst youthful customers, by incentivizing them to make use of the app extra usually. As such, all applications that would improve systemic dangers are required to be submitted to E.U. officers for evaluation earlier than implementation.

As a result of TikTok failed to take action, it might now be going through fines, with E.U. officers in a position to implement penalties of as much as 6% of an organization’s world income for violations.

Which is why TikTok has rapidly shut down this system, as it really works with E.U. officers to deal with their considerations.

It appears unlikely that TikTok can be hit with important fines because of this initiative, however on the similar time, E.U. investigators can be trying to make an instance of the case, as a reminder of the brand new D.S.A. rules.

And it’s one other headache for the corporate, which, apart from the sell-off push in America, can be coping with a slowdown in customers, and low curiosity in its ongoing procuring push.

It’s definitely acquired its share of points to take care of, and it’ll be attention-grabbing to see whether or not TikTok is penalized for this system, and what the penalty is likely to be.