The European Commission has determined that TikTok is breaching EU digital regulations, which mandate transparency from those who pay for advertising.
The committee has reached a preliminary conclusion regarding the advertising practices of the Chinese-owned short video platform, following an investigation that commenced in February 2024. Should the committee uphold this assessment, the company could incur a penalty of 6% of its global annual revenue.
Moreover, an ongoing EU investigation into TikTok, which raised concerns about the integrity of the Romanian election, is a priority for the committee. This inquiry began last December.
The committee’s finding of TikTok’s lack of advertising transparency comes just four days ahead of “Super Sunday,” when voters will head to the polls in Poland, Portugal, and Romania.
According to the EU’s Digital Services Act (DSA), large internet platforms are required to maintain advertising libraries, detailing ad content and identifying target users who pay for advertisements. The committee noted that TikTok has failed to provide this information, inhibiting public access to search it. This repository is vital for EU officials to detect fraudulent ads and coordinated campaigns aimed at election disruption.
Romania experienced political upheaval last year when the first round of the presidential election was nullified, citing a Russian online campaign promoting far-right candidates who skewed voting outcomes.
On Sunday, Romanian voters will select between two candidates in the second round of the rescheduled presidential election.
The European Commission initiated an investigation last December to assess whether TikTok adequately managed the risks to the integrity of Romania’s presidential election. Ursula von der Leyen, the committee’s president, stated, “There are substantial indications that foreign entities have utilized TikTok to meddle in Romanian presidential elections.”
The alleged non-compliance with TikTok’s advertising library complicates efforts for EU officials and researchers to ascertain if misleading ads were utilized in election campaigns, including in Romania. However, the committee cautioned against concluding that TikTok has violated the DSA’s electoral integrity requirements.
Commission spokesperson Thomas Leisure indicated that there is no direct correlation between the December investigation and the preliminary findings regarding advertising transparency violations.
“Naturally, the malfunctioning ad repository is an issue since it hampers the ability to assess whether fake or deceptive ads are being employed in elections,” explained Regnier. Nevertheless, he added, “The fact that the advertising repository is malfunctioning in the context of this February investigation does not impact the findings of the December inquiry.”
As part of the December investigation, EU officials stated that Mr. TikTok is evaluating necessary measures to avert electoral interference in Romania.
A TikTok spokesperson mentioned that the company is reviewing the committee’s preliminary findings regarding the advertising repository. “While we support the regulatory aims of the DSA, we are also continuously enhancing our advertising transparency tools. We contest some of the committee’s interpretations and highlight that guidance is being provided through preliminary findings rather than explicit public directives,” the company stated.
The company currently has the right to examine the committee’s investigative files and establish a defense. If the committee confirms its findings, TikTok could be fined up to 6% of its annual global revenue and will be required to take corrective measures.
The committee also noted that TikTok’s algorithm continues to face scrutiny for other suspicious activities under EU law, including whether users engage with content that leads to addictive behaviors. Investigations into TikTok’s age verification and child safety protocols also commenced in February last year alongside the inquiry into the advertising repository, but those efforts remain unresolved.
TikTok has previously indicated that it is collaborating with relevant authorities regarding the elections.
Source: www.theguardian.com
