EU on TikTok Lite’s reward program: The European Commission announced a potential suspension of TikTok Lite's reward program within the European Union on Thursday, citing concerns over its potentially addictive impact on children. This action comes as part of an investigation into the app's launch in France and Spain, initiated under the EU's Digital Services Act (DSA), which mandates leading online platforms to address harmful and illegal content or face fines of up to 6 per cent of their global annual turnover.

Thierry Breton, EU industry chief, stated that unless TikTok provides compelling evidence of its safety, the Commission is prepared to implement interim measures under the DSA, including the suspension of TikTok Lite. TikTok, owned by ByteDance, has been given until Wednesday to present its case before the Commission decides on potential suspension.

In response, TikTok expressed disappointment with the Commission's decision, underlining that the TikTok Lite rewards hub is not accessible to individuals under 18 and includes daily limits on video watch tasks. The company pledged to continue discussions with the Commission.

The Commission has given TikTok 24 hours to provide a risk assessment report on TikTok Lite or face a fine of up to 1 per cent of its global annual turnover. Additionally, TikTok has until May 3 to furnish other requested information.

TikTok Lite was recently launched in France and Spain, featuring a reward program that enables users to earn points by engaging in various platform activities such as watching videos, liking content, following creators, or inviting friends to join. However, the Commission noted that TikTok launched the app without submitting a required risk assessment report under the DSA.

This investigation adds to the scrutiny already faced by TikTok, with another probe initiated in February to examine potential breaches of DSA rules related to child protection and transparent advertising practices.

(With Reuters inputs)