The European Union has issued a preliminary finding that TikTok violated privacy rules for minors under the Digital Services Act. The move opens the door to a potential fine against the social video platform.
The preliminary finding
EU regulators said TikTok failed to adequately protect children using its service. The finding is part of a broader enforcement push under the Digital Services Act, which took full effect earlier this year. The act imposes strict obligations on large online platforms to assess and mitigate systemic risks, including risks to minors.
According to the EU, TikTok did not comply with requirements to provide a high level of privacy and safety for underage users. The specific violations were not detailed in the preliminary finding, but the DSA mandates that platforms design their systems to minimize exposure to harmful content and protect children's personal data.
What the DSA requires
The Digital Services Act requires platforms like TikTok to conduct annual risk assessments and take measures to address risks to minors. This includes ensuring that default privacy settings are set to the highest level for children, and that targeted advertising based on profiling of minors is prohibited. The EU's preliminary finding suggests TikTok fell short on these obligations.
TikTok, owned by Chinese company ByteDance, has faced scrutiny in multiple jurisdictions over its handling of young users. The EU's action is the first formal enforcement step under the DSA's new child safety provisions.
Potential consequences
If the preliminary finding is confirmed after TikTok's response, the company could face a fine of up to 6% of its global annual revenue. For a platform that generated roughly $16 billion in revenue last year, that could amount to nearly $1 billion. The EU can also impose behavioral remedies, such as requiring TikTok to change its algorithms or content moderation practices.
The preliminary finding is not final. TikTok will have a chance to review the evidence and submit a written defense before the European Commission makes a final decision. The company has not yet commented publicly on the finding.
