TikTok in Hot Water: EU Commission Slams Opaque Ad Practices
EU Commission Declares TikTok Violates Advertising Regulations
In a scathing preliminary assessment, the European Commission has accused TikTok of violating EU digital rules due to the company's non-transparent advertising practices. The Chinese social media giant stands to face a heavy fine as the European Union demands greater clarity in advertising disclosures.
The Digital Services Act and Ad Transparency
The Digital Services Act (DSA), a crucial EU legislation, outlines strict obligations for advertising disclosure. By mandating public ad archives, the DSA empowers researchers and civil society to detect fraudulent advertising, disinformation campaigns, and other harmful online content.
However, TikTok falls short in this regard. The EU Commission claims that the platform fails to publish an ad registry, and its ad archive is inadequate for comprehensive searching, undermining its usefulness[1].
A Case of Lackluster Disclosure
The Commission has pinpointed three key areas where TikTok is lacking:
- Lack of detailed information about the content of advertisements: TikTok does not provide clear, concise information about the ads it displays.
- Insufficient disclosure about targeted users: The platform does not adequately reveal how and to whom ads are directed[2].
- Insufficient disclosure about advertisers and sponsors: TikTok users are often left in the dark about the identity of the parties financing the ads they see.
These shortcomings prevent users and researchers from effectively scrutinizing advertisements as required by the DSA[3][4].
Potential Penalties and Ongoing Investigations
Informed of the preliminary findings, TikTok faces a potential fine of up to six percent of its global annual turnover[1]. The assessment was carried out through a comprehensive analysis of internal company documents, tests of TikTok tools, and consultations with industry experts.
Similar proceedings against various platforms, including X (formerly Twitter)[5], are already underway in the EU for suspected violations of the DSA. The legislation is also instrumental in tackling hate speech. Brussels is also investigating Facebook and Instagram parent company Meta for DSA violations[6].
Sources: ntv.de, jog/dpa
- TikTok
- EU Commission
- Social Media
- China
- European Union
- X (formerly Twitter)
- Elon Musk
- Brussels
- Digital Services Act (DSA)
- The Commission is proposing to extend the deadline for the submission of proposals from TikTok regarding the Council, following concerns about the platform's non-transparent advertising practices.
- In relation to the digital services Act (DSA) regulations, the financial implications for TikTok could be significant if it does not address the lack of advertising transparency, as the platform is reportedly falling short in providing detailed information about the content of advertisements, insufficient disclosure about targeted users, and insufficient disclosure about advertisers and sponsors.
- The European Union's investigation into TikTok's advertising practices comes amid ongoing investigations into various other digital platforms, including X (formerly Twitter), Facebook, and Instagram parent company Meta, for potential violations of the DSA.
- The business sector, Politics, and entertainment industries, all active on social-media platforms like TikTok, are closely watching the ongoing investigations into these platforms, as the decisions could set important precedents for advertising disclosure and transparency across the globe, particularly in the technology and general-news sectors.
