TikTok Lite suspended in Europe

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Faced with pressure from the European Union, social network TikTok has decided to suspend its TikTok Lite reward system for Europe.

While the U.S. government has approved the proposed sale of TikTok, the company faces new challenges: EU officials recently launched an investigation into the Chinese social network's latest initiative "TikTok Lite", which allows users in certain regions to be paid based on their use of the app. In response to this investigation, TikTok announced the closure of its "TikTok Lite" rewards program, which could result in sanctions for violating the European Digital Services Act (DSA). TikTok's rewards program awards points to users based on actions taken within the application. For example, users can earn points by discovering and liking videos on the app.

As Reuters reports, "TikTok will voluntarily suspend the rewards program for its new TikTok Lite app while it attempts to resolve EU concerns, the company said on social media platform X on Wednesday."

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Why is the European Union concerned about TikTok Lite?

EU officials have expressed concern that the system could contribute to app addiction, particularly among younger users, by encouraging them to use the app more often. As such, any programs that could increase systemic risks must be submitted to EU officials for assessment before implementation. Because TikTok failed to do so, it could now face fines, with EU officials able to impose sanctions of up to 6% of a company's worldwide sales in the event of a breach. So it's hardly surprising that TikTok has put its program on hold.

A new headache for the company which, following the liquidation campaign in America, is also faced with a slowdown in the number of users of its platform and low interest in its TikTok Shop marketplace.

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