TikTok may have run afoul of European regulators over advertising transparency, in the latest bout between EU regulators and big tech companies. The European Commission has formally warned TikTok that its advertising transparency tools don’t go far enough, falling short of EU rules requiring online platforms to maintain a publicly available repository of all paid ads being shown to users.
Regulators are taking issue with the data, or lack thereof, being provided in the repository that TikTok has curated. They claim that TikTok has failed to provide information on who paid for ads, what audiences they are targeting and the precise product or service those ads are promoting.
This information is all used by regulators and researchers to help weed out harmful content like scams, disinformation or coordinated influence campaigns. These rules fall under the Digital Services Act (DSA), an EU regulation adopted in 2022 that governs illegal content, transparent advertising and disinformation. Enforcement for Very Large Online Platforms (VLOPs) like TikTok began in the summer of 2023, and the Commission opened formal proceedings to assess whether TikTok had violated the DSA in February of 2024.
In a statement, European Commission Tech VP Henna Virkkunen said, “Transparency in online advertising — who pays and how audiences are targeted — is essential to safeguarding the public interest.Whether we are defending the integrity of our democratic elections, protecting public health or protecting consumers from scam ads, citizens have a right to know who is behind the messages they see.”
In a statement to the press, a TikTok spokesperson disagreed with the findings, saying "While we support the goals of the regulation and continue to improve our ad transparency tools, we disagree with some of the Commission's interpretations and note that guidance is being delivered via preliminary findings rather than clear, public guidelines." This isn't the first time that TikTok has found itself in hot water with internet safety regulators in Europe.
Under the rules of the DSA, TikTok parent company ByteDance could be fined as much as 6 percent of its total worldwide revenue and be subjected to an enhanced supervision period where regulators ensure that any required changes are being made.
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