The EU launches a second formal investigation: TikTok Lite may face heavy fines.

On April 23,fbs foreign exchange local time, the European Union announced the launch of a second formal investigation into TikTok, focusing on the potential violation of the Digital Services Act by its "TikTok Lite" version launched in France and Spain. This move has led to a renewed scrutiny by the EU of TikTok's operational methods within the EU region.

It is understood that TikTok Lite is a version specially designed for users with less than 2GB of memory, limited data connections, or those who only support 2G/3G network connections. However, this version includes a "tasks and rewards program," allowing users to earn in-app "currency" by completing specific tasks.

The EU pointed out that France and Spain did not fully assess the potential risks when launching the mechanism, especially the risks related to platform addiction effects, and did not take effective risk mitigation measures. The lack of an effective age verification mechanism on the platform is of particular concern to the EU and has become one of the focuses of the investigation.

This investigation specifically focuses on whether TikTok complies with the obligations under the Digital Services Act, namely to conduct and submit a risk assessment report before deploying functions that may have a significant impact on systemic risks. This includes the negative impact on mental health, especially minors' mental health, and whether new features stimulate addictive behavior.

The EU has requested TikTok to submit a risk assessment report before the local time of April 23, and provide the other required information before May 3. If TikTok fails to respond to the Commission's request for information within the prescribed deadline, the Commission can impose a fine of up to 1% of its annual total income or global turnover, and a periodic fine of up to 5% of its daily income or global annual turnover.

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