TikTok stops rewards programme after 'addiction charges' in Europe

TikTok has agreed to suspend a controversial rewards program in its newer TikTok Lite app after facing intense pressure from European Union regulators. The ByteDance-owned company made the move to avoid further legal action under the EU's strict new tech regulations.

Officials warn TikTok Rewards could "generate addiction"The rewards hub allowed TikTok Lite users aged 18 and over to earn points by watching videos and performing other activities on the app.

Those points could then be redeemed for gift cards, vouchers, and other perks.

But EU authorities claimed this "task and reward" system risked promoting addictive behaviours, especially in young people. They gave TikTok just 24 hours to provide a risk assessment report proving the feature was safe before threatening to seek an emergency ban.

"Unless TikTok provides compelling proof of its safety...we stand ready to trigger interim measures including the suspension of TikTok Lite," EU's industry chief Thierry Breton warned the social media app earlier this week.

Breton bluntly compared the rewards scheme to past tactics by tobacco companies marketing "lite" cigarettes as a healthier option. "Is social media 'lite' as addictive and toxic as cigarettes 'light'?" he asked.

EU flexes new tech rulesThe showdown marked Brussels's first major enforcement action using powers granted by the Digital Services Act (DSA), a landmark law passed last year.

The DSA allows the EU to levy billions in fines and even temporarily ban apps or services from tech giants like TikTok if they fail to adequately protect users from harmful or illegal content.

Facing such threats, TikTok had little choice but to capitulate. "TikTok always seeks to engage constructively with regulators," a company statement read. "We are therefore voluntarily suspending the rewards functions."

TikTok insists the hub was designed with safeguards like time limits on earning points. It also claims the feature was never available to users under 18. However, EU officials remained unconvinced that those steps went far enough.

"Our children are not guinea pigs for social media," Breton declared after TikTok's suspension. He vowed the investigation into potential platform "addictiveness" would continue.

TikTok's mounting woesThe rewards hub probe adds to TikTok's growing regulatory headaches worldwide. On the same day it announced the Lite app suspension, the U.S. passed a law that could force ByteDance to sell off TikTok's American operations.

In February, the EU opened a separate investigation into whether TikTok's main platform violates DSA rules around data privacy, advertising transparency, and protecting minors from harmful content.

TikTok has made some product tweaks in response, like letting European youths opt out of recommendation algorithms. But the app remains in regulators' crosshairs on both sides of the Atlantic amid continuing concerns over potential risks to young users.