ByteDance Ltd., the owner of popular video-sharing platform TikTok, is in danger of facing significant fines as the European Union (EU) prepares to launch an investigation into the company. The probe will be carried out under the EU's new Digital Services Act (DSA), which aims to ensure the safety of minors using online platforms.
Sources familiar with the matter have revealed that the European Commission will initiate the investigation in the coming weeks. The primary concern is that the adjustments made by TikTok to comply with the new regulations might not be sufficient to protect underage users effectively.
The DSA grants regulators extensive powers to take action against major tech companies for their content moderation practices. Companies could incur fines of up to 6% of their annual revenue, and in severe cases, they might even face bans from operating within the EU if they repeatedly violate the rules.
In December, EU regulators launched their first formal investigation under the DSA into Elon Musk's platform, X, to examine potential violations in the handling of illegal content and disinformation. The EU has identified 19 online platforms and search engines as "very large," including X, Meta Platforms Inc., and Alphabet Inc., and has been scrutinizing them for relevant information. Additionally, three adult websites have been recently added to the list.
So far, both TikTok and the European Commission have refrained from providing any comments regarding the investigation. The discussions between the two parties are ongoing, and it is not yet certain whether a full probe will be initiated.
Since TikTok was designated as one of the platforms under the DSA, the EU has submitted multiple information requests to the company. These inquiries focus on the steps TikTok has taken to protect minors, particularly concerning their mental and physical health risks, as well as how children utilize the platform.
It is likely that further investigations will follow, as the EU has been consistently seeking additional information from all designated companies in recent months. Meta's Instagram, for instance, has also faced inquiries from the EU regarding the changes it has implemented to comply with the new regulations and to assess and mitigate risks faced by underage users.
As the EU continues to prioritize the safety of minors online, it appears that tech companies will face increasing scrutiny and potentially severe penalties if they fail to adequately protect vulnerable users on their platforms.