European Commission Finds TikTok Advertising Violates EU Law

The European Commission has announced that TikTok's advertising practices may lead to substantial fines due to breaches of EU regulations. The commission asserts that the platform's lack of transparency in its advertising violates the Digital Services Act (DSA). This legislation mandates social media companies to establish a comprehensive advertising registry that includes details about the advertisers, the content of the ads, and the targeted audiences. The goal is to prevent manipulative advertising tactics that pressure users into making purchases, as well as to restrict advertising aimed at children.

Approximately a year ago, the European Commission formally initiated investigations into TikTok, which is owned by the Chinese company ByteDance. The inquiry also scrutinizes the platform's potential influence on the Romanian presidential election held in late 2024.

According to the commission, TikTok has been briefed on the preliminary findings of the investigation. Before the commission makes a final determination regarding the penalty, TikTok will have an opportunity to respond in writing to the allegations. Should the violations persist, the fines could reach up to six percent of TikTok's total global annual revenue.

The commission's initial conclusions derive from an extensive investigation that included reviewing internal company documents, testing TikTok's advertising tools, and consulting with experts in the field.

In addition to TikTok, other platforms such as X, owned by Elon Musk, are also facing multiple investigations within the EU for alleged DSA infringements. The DSA aims to ensure stringent action against hate speech and other harmful online content. Similarly, Meta, the parent company of Facebook and Instagram, is under investigation by the European Commission for similar breaches of the DSA.

The outcome of these investigations may significantly impact how social media companies operate within the European Union, pushing them towards greater accountability and transparency in their advertising practices.