DSA Proceedings: Tiktok Reaches Agreement with EU Commission on Advertising

Tiktok wants to comply with the transparency obligations regarding advertising that arose from the Digital Services Act (DSA) and thus avoids an EU penalty for the time being. Tiktok, which belongs to the Chinese company Bytedance, has "submitted binding commitments that address all concerns" regarding advertising transparency, the EU Commission announced on Friday. Tiktok must now implement the agreed remedies within an unspecified period.

The EU Commission initiated an investigation in February 2024 to determine whether Tiktok complies with the rules under the DSA applicable to platform operators. This included the obligation to report transparently and regularly on the advertising running on the platform. These reports must also be made accessible to users.

After the Commission concluded that the Chinese operator of Tiktok had violated these rules, the company, in coordination with Brussels, proposed measures that the Commission has now accepted. In May, Tiktok CEO Shou Zi Chew met in Brussels with, among others, EU Commission Vice-President Henna Virkkunen.

Database for Advertising

According to the Commission, Tiktok undertakes to keep all content of the advertising placed on the platform, including the linked pages and the criteria for its dissemination, available in a database. Tiktok now wants to update this data regularly and ensure that the advertising content is available no later than 24 hours later. The company also wants to facilitate searching the data for users and for research purposes.

The EU Commission is also investigating Tiktok (and other platforms) regarding the impact of algorithms and measures for youth and data protection of users. Data access for research purposes is also a topic. Most recently, the Commission also initiated an investigation into the possible influence on EU elections by the platform and instructed Tiktok to save the relevant data for this purpose. These investigations are ongoing.

Fine of millions against X

Also on Friday, the Commission imposed a fine of 120 million euros in proceedings against the platform X. Further investigations are also ongoing against X. Elon Musk rejects the accusations against his platform and does not want to cooperate with the Commission. The US government also sharply criticized the Europeans' actions against American platforms.

The fact that the Commission is now simultaneously announcing the comparatively small-scale agreement with Tiktok can be understood as a hint for the Americans who are not willing to negotiate. "The message is clear: our goal is compliance," said Virkkunen, the EU Commission's Vice-President responsible for digital affairs. "If platforms cooperate constructively with the Commission, we are prepared to accept solid commitments."

(vbr)