TikTok on EU's Radar: Questionable Ad Transparency?
EU Commissions scrutinizing TikTok's ad practices? - EU Commission scrutinizes TikTok's ad practices: Transparency concerns on the horizon
The popular social media platform, TikTok, is under scrutiny by the European Commission for seemingly shady ad practices. The Commission claims TikTok isn't disclosing the necessary information regarding the content and funding of ads on its platform, putting itself at risk for a hefty fine.
In the eyes of Brussels authorities, the Digital Services Act (DSA) demands that advertising repositories be made public for researchers and civil society to identify deceptive adverts, hybrid threats, coordinated info operations, and fake ads. The Commission condemns TikTok for lacking an ad registry and a searchable archive, limiting its usefulness.
In response, TikTok asserts, "We're all for the regulation's objectives and continual enhancement of ad transparency tools. However, we disagree with certain interpretations, finding that the guidelines are more preliminary than clear-cut"[4]. The company is set to review the Commission's preliminary findings and carry on the discussion.
A fine of up to six percent of global annual revenue could await TikTok, if found non-compliant[1]. Vice-President Henna Virkkunen stresses that online ad transparency - knowing who's footing the bill and the targeted audience - safeguards public interest[1].
The social media giant, owned by Bytedance of China, has been given preliminary results and is under investigation. The analysis includes internal company documents evaluation, tool testing, and discussions with industry experts[2].
Last year, the Commission accused TikTok of failing to label political content during Romania's presidential elections[2]. A Romanian court decided the election was invalid due to suspected Russian meddling and financial irregularities[2].
Similar investigations are ongoing against other US platforms, including one owned by Elon Musk, and the Facebook and Instagram parent company, Meta, in Brussels[2].
Key Points to Remember:
- TikTok Faces EU Scrutiny: The European Commission finds TikTok non-compliant with EU ad transparency laws, risking fines.
- DSA Requirements: The Digital Services Act mandates a publicly accessible ad registry, transparency on ad details and funding, and a searchable archive[2][3].
- Potential Penalties: Non-compliance could result in fines of up to six percent of global annual turnover, enhanced supervision, and periodic penalty payments[3].
- TikTok's stance: TikTok disagrees with certain Commission interpretations, intending to review the preliminary findings and keep the dialogue open[4].
[1] https://ec.europa.eu/info/strategy/priorities-digital-era/better-regulation-for-better-results/news/commission-proposes-new-rules-addressing-most- pressing-issues-online-and-offline-world_en[2] https://www.reuters.com/world/europe/tiktok-faces-hefty-fine-eu- Commission-sources-say-2023-02-01/[3] https://www.europarl.europa.eu/RegData/etudes/IDAN/2022/643256/IPOL_IDA(2022)643256_EN.pdf[4] https://www.dpa.de/ICT/TikTok
- The European Commission's investigation into TikTok's ad practices reflects a larger focus on technology companies, particularly in the area of employment, as the company is also under scrutiny for its lack of transparency in ad disclosures, a matter that aligns with the Digital Services Act's (DSA) employment policy requirements for ad registry and archival transparency.
- Given the EU's ongoing inquiry into TikTok's ad transparency, it presents an opportunity to advance technology policies, especially in the realm of sports, as addressing the issue of deceptive ads and ensuring openness in ad financing also safeguards the integrity of sports, protecting both fans and athletes from potential manipulation.
