The European Union is poised to impose fines and potentially suspend TikTok Lite, citing addiction concerns linked to its reward schemes. The app, a simplified version of TikTok, tempts users with cash for activity, raising addiction fears, especially in Spain and France. This investigation, the EU’s second into TikTok, specifically targets the app’s mental health impacts. This action aligns with broader regulatory moves, including a possible U.S. TikTok ban discussed in Congress, due to security concerns.

Under the Digital Services Act, TikTok must justify its reward system within 48 hours to avoid a suspension of up to 60 days. The company could also face steep fines for non-compliance, possibly exceeding 6% of its annual global revenue, for violating EU regulations. TikTok asserts that the incentive program excludes minors and includes usage caps, continuing dialogue with the EU to address these regulatory challenges.