We will also deal with similar topics at our Portfolio Investment Day 2024 conference on May 16, in which participation is free after registration.
ByteDance announced that it has submitted its developed TikTok Lite application risk assessment for European Union supervisory bodies. This move is the company’s response to EU regulators threatening fines and a partial ban on the service, citing potential dangers to minors. The EU decided yesterday to launch investigations into France and Spain after concerns were raised about TikTok Lite’s reward system, which could lead to addiction among young people.
According to the company’s announcement, the deadline for handing over the documents was met on time. Regulators are demanding that ByteDance conduct a thorough risk analysis, which they say they failed to do in the past. In addition, EU officials gave the company until April 24 to defend its program.
If they fail to comply with the requirements of the new Digital Services Act (DSA), TikTok could face a fine of up to 1% of its annual revenue or a periodic penalty of 5% of its average daily revenue. The US House of Representatives has already taken steps against the app’s parent company, requiring the divestment of its ownership.
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