The European Commission has issued preliminary findings indicating that TikTok may have violated the Digital Services Act (DSA), potentially exposing the social media platform to a fine of up to 6% of its global annual revenue.
The announcement on Thursday stems from an investigation launched in February 2024, focused on TikTok’s advertising transparency obligations under the DSA — landmark legislation that governs digital services across the EU. The Commission stated that TikTok’s advertising repository fails to meet legal standards required for very large online platforms.
According to the Commission, TikTok has not provided essential details about advertisements running on its platform. Specifically, the repository lacks sufficient information about the content of the ads, the identity of the paying entities, and the demographics or users targeted. Additionally, the repository does not offer robust search capabilities, undermining its utility for researchers and civil society groups aiming to detect disinformation, scams, or influence operations.
“These shortcomings limit the public’s ability to scrutinise online advertising and understand how digital platforms influence public discourse,” the Commission said in its statement.
TikTok, owned by Chinese tech firm ByteDance, now has the opportunity to review the Commission’s findings and respond in writing before a final decision is made. If the violations are confirmed, the platform could face a fine amounting to billions of euros.
The DSA, which came into full effect for all online platforms in early 2024, imposes strict transparency, safety, and accountability requirements, particularly for platforms with over 45 million EU users.
This case is one of several ongoing DSA probes. The Commission is continuing to investigate other aspects of TikTok’s operations, including concerns over its algorithmic systems, child safety protocols, age verification measures, and data accessibility for researchers. Another probe launched in December 2024 remains unresolved, focusing on TikTok’s handling of misinformation during Romania’s electoral process.
The EU has also opened investigations into other major tech companies, including X (formerly Twitter), Meta, and AliExpress, though none have concluded.
Thursday’s development underscores the EU’s commitment to enforcing digital rules amid growing concerns over the power and influence of online platforms in democratic societies.