TikTok’s regulatory woes continue as E.U. inquiry leads to suspension of rewards app

TikTok is fighting regulatory battles on both sides of the Atlantic. As it contends with a potential ban or divestiture in the United States, it is also facing renewed scrutiny from the European Union thanks to a new app called TikTok Lite.

The TikTok Lite app arrived in countries like Spain and France earlier this month. According to a written description of the app shared by The Information, the new app looks to address TikTok’s “stagnant” growth in Europe by rewarding viewers when they take actions like watching videos and inviting friends to join. Those rewards can be redeemed for gift cards and digital tips for creators.

That system sounds like a good deal in theory — but the European Union isn’t so sure how it works in practice. Days after TikTok Lite launched, the E.U. opened proceedings to look into the app’s reward structure. As stated in a press release, the E.U. is concerned that TikTok Lite constitutes “stimulating addictive behavior” and is “likely to have a critical impact on systemic risks.”

European investigations into TikTok have become more common since the passing of the Digital Services Act (DSA), which introduced new rules for platforms operating on the continent. The DSA has already given Europeans a depersonalized algorithm and easier access to ad blockers; now, it’s protecting them from addictive, gamified apps.

To comply with the DSA, TikTok would have to submit a risk assessment related to Lite’s rewards program. The ByteDance-owned company seems to have taken a different route: It responded to the E.U. inquiry by suspending TikTok Lite. The new app will be out of commission in Spain and France for at least 60 days, and its rollout in other countries will be halted as well.

Though TikTok seems to be under constant watch, not all of its apps are facing regulatory challenges. It recently introduced TikTok Notes, which offers a photo-based milieu reminiscent of old-school Instagram.