TikTok has decided to discontinue its “TikTok Lite” rewards program in Europe following an investigation by the EU Commission. The program, which offered users cash incentives for engaging with content on the app, was scrutinized by the Commission over concerns it might violate the Digital Services Act (DSA).

In April, the EU Commission requested detailed information from TikTok about the TikTok Lite program, which had been piloted in France and Spain. The program allowed users to earn points by performing various in-app activities, such as discovering and liking videos. This raised concerns among EU officials that the program could promote excessive use and potentially lead to app addiction, especially among younger audiences.

Facing potential fines of up to 6% of its global revenue for non-compliance with the DSA, TikTok initially suspended the rewards program. The company has now committed to permanently ending the initiative to avoid these penalties. The EU Commission has made TikTok’s decision binding, ensuring the company adheres to the commitments and avoids further infractions.

This binding commitment from TikTok means that any similar future programs will require prior approval from the EU Commission. By proactively ending the TikTok Lite rewards program, TikTok effectively closes the investigation and avoids significant financial penalties, demonstrating compliance with the DSA regulations.

The EU Commission views this outcome as a victory in its efforts to regulate social media practices and protect users in Europe. This case sets a precedent for how the DSA will be enforced, likely discouraging other platforms from launching similar initiatives without regulatory approval.

While this could limit some innovation, it ensures greater accountability and transparency, potentially leading to improved outcomes for users and platforms alike.