In an update, TikTok has announced that it will temporarily halt its reward program for the new app TikTok Lite in response to concerns raised by the EU.

According to Reuters, the company made this announcement on X social media platform on Wednesday.

TikTok Announces Suspension of TikTok Lite's Program

"TikTok always seeks to engage constructively with the EU Commission and other regulators. We are therefore voluntarily suspending the rewards functions in TikTok Lite while we address the concerns that they have raised," TikTok Policy Europe wrote on X. 

The European Union (EU) has initiated actions against ByteDance's TikTok, raising concerns about the potentially addictive nature of its recently introduced TikTok Lite rewards program, especially among young users.

The European Commission has issued a deadline for TikTok to submit a risk assessment report for TikTok Lite. 

Failure to comply may result in fines. Additionally, TikTok has been given until May 3 to provide additional requested information.

The Commission raised concerns about TikTok Lite's "Task and Reward Program," which enables users to earn points by liking content or inviting friends to the app. 

EU said that the program was launched without a thorough assessment of the potential risks, particularly regarding the addictive nature of such platforms. 

According to CNN, concerns have been raised about the potential risks to children due to TikTok's lack of reliable age verification mechanisms.

The decision came after the US House of Representatives approved a bill that raised national security concerns and could potentially result in TikTok's ban from the United States. 

The US Senate is anticipated to consider that measure as early as this week as part of a vote on foreign aid to Israel and Ukraine.

Commission officials have recently used new tools granted to them under Europe's comprehensive Digital Services Act (DSA) to assert their authority in the latest EU probe.

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TikTok Faces Scrutiny From the US, EU

Another ongoing DSA investigation into TikTok was launched in February regarding the company's approach to user harm in general. This investigation is separate from that.

Suppose the Commission determines that TikTok has failed to provide the requested information. In that case, it has the authority to impose a fine of 1% of the company's global annual revenue and additional fines of 5% of its daily revenue.

The Commission initially requested the information on April 17, with a suggested deadline the following day.

Commission officials stated that TikTok responded to their request by informing them that a risk assessment had been conducted, but the document could not be shared. The Commission then issued a binding order on Monday.

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