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Explore the implications as the European Union commences a formal inquiry into TikTok's operations

Tech News: TikTok Faces Regulatory Scrutiny: The European Commission has launched a formal investigation into whether ByteDance-owned TikTok has breached the Digital Services Act (DSA) covering the protection of minors, transparency of advertising, access to information by researchers, and risk-taking on the use of addictive and harmful substances.

On appeal, the Commission stated that it would remain in the collection of evidence, which may include the use of requests for additional information, interviews, or investigations, as described in the article.

"Today we open an investigation into TikTok over a suspected breach of transparency & obligations to protect minors: addictive design & screen time limits, rabbit hole effect, age verification, default privacy settings," Breton said on X.

The EU Digital Services Act (DSA), which applies to all online platforms from February 17, requires very large internet providers and specialized search engines to do more to combat illegal online content and public safety threats.

TikTok owner China-based ByteDance could face a fine of up to 6% of its global revenue if TikTok is found guilty of violating DSA rules.

TikTok said it will continue to work with experts and the industry to make young people safer on their platforms and expects to detail this project to the European Commission.

"TikTok has pioneered features and settings to protect teens and keep under 13s off the platform, issues the whole industry is grappling with," a TikTok spokesperson said.

The European Commission said the investigation would focus on the design of TikTok systems, including algorithmic settings that could trigger addictive behavior and/or create the so-called ‘rabbit hole effect’.

It will also examine whether TikTok has put in place reasonable and appropriate measures to ensure a high level of privacy, safety, and security for minors. Along with the issue of protecting minors, the commission is looking into whether TikTok provides reliable advertising data on its platform that would allow investigators to analyze potential online risks.

This is the second DSA investigation after Elon Musk’s social media platform X found itself in the EU's crosshairs in December last year.

Conclusion

Amid growing regulatory pressure, TikTok is facing a pivotal moment in its journey as a leading social media platform. The outcome of the EU inquiry will undoubtedly determine the future of online content management, data privacy standards, and digital rights protection in the EU and beyond.