May 16, the Guancha Observer learned that TikTok, a social media application, was accused by the EU technology regulatory agency of violating EU online content rules on Thursday, and its parent company ByteDance may face a fine of up to 6% of its global turnover.
According to comprehensive reports from Reuters and the American political news website, the EU executive body believes that TikTok failed to comply with the obligations stipulated in the Digital Services Act (DSA) in terms of setting up an advertising repository and information disclosure. Specifically, it did not establish an advertising repository intended for researchers and users to detect fraudulent advertisements.
The Digital Services Act requires online platforms to strengthen efforts to combat illegal and harmful content and provide relevant advertising information, and TikTok may be "deficient" in this regard.
Henna Virkkunen, the EU's tech affairs chief, stated in a declaration: "The transparency of online advertising— who pays for it and how audiences are targeted—is crucial to maintaining public interests."
The European Commission said that the company failed to provide necessary information about advertising content, target users, and advertisers. After launching an investigation last February, preliminary investigation results were sent to TikTok.
However, this determination aims to formally notify TikTok of its current compliance issues and does not constitute a final conclusion. If TikTok is finally confirmed to be in violation, the European Commission may make a formal decision and impose a fine of up to 6% of its global annual turnover.
According to previous reports by The Information, ByteDance's international revenue (mainly TikTok) reached $39 billion in 2024. Based on this calculation, the fine could reach $2.34 billion.
In response, a TikTok spokesperson said that the company "is verifying the Commission's investigation results" and continues to "commit to fulfilling the obligations of the Digital Services Act."
The spokesperson said, "Although we support the goals of this regulation and will continue to improve our advertising transparency tools, we disagree with some of the Commission's interpretations, and it should be noted that the guidance was conveyed through preliminary investigation results rather than clear public guidelines." "A fair competitive environment and consistent enforcement are crucial."
It is worth noting that TikTok is the second platform after Elon Musk's X platform to receive a warning from the European Commission for violating the Digital Services Act.
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Original source: https://www.toutiao.com/article/7504956329929245220/
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