EU's Crackdown on TikTok: Transparency Woes in the Advertising Realm
EU Commission scrutinizes TikTok's ambiguous marketing practices - EU Commission Scrutinizes TikTok's Transparent Advertising Practices
The wildly popular social media app TikTok finds itself in the crosshairs of the EU Commission, accused of skirting digital advertising regulations through opaque practices. The Brussels-based authority claims TikTok is lagging behind in providing essential ad information, risking a stiff fine.
The EU's Digital Services Act (DSA) sets clear guidelines for ad repositories, a necessity for researchers, civil society, and the public to detect deceitful ads, hybrid threats, misinformation, and coordinated propaganda. The Commission contends that TikTok falls short in two crucial areas: the lack of an ad registry and an ad archive that doesn't support comprehensive public search.
However, TikTok spokespersons retort that while they respect the DSA's goals and consistently work on enhancing their transparency tools, they disagree with certain interpretations, especially the subjective nature of the guidelines [1]. The platform plans to challenge the Commission's preliminary findings on ad repositories and continue dialogue.
Fining Power: Six Percent of Global Annual Turnover
The EU Commission Vice-President, Henna Virkkunen, emphasizes the importance of exploring the true nature of online ads, including who is behind them and how they reach target audiences. "Whether it's safeguarding elections, public health, or consumer rights, citizens deserve transparency about the advertising they encounter," she states [2].
The Chinese-owned social media company faces potential fines equating to six percent of its global annual turnover, should investigations find non-compliance with the DSA [2]. These preliminary findings are the result of an investigation consisting of document analysis, testing TikTok's tools, and consultations with experts in the field.
Past Allegations: EU Elections and Romanian Election Irregularities
Last year, the EU Commission scrutinized TikTok in connection with Romania's first round of presidential elections and alleged the platform failed to label content from pro-Russian and far-right candidate Calin Georgescu as political advertising [3]. The elections were later declared invalid due to suspected Russian election interference and financial irregularities.
Additionally, several investigations are ongoing against other platforms like Elon Musk's platform X, Meta, and Facebook/Instagram, for alleged DSA violations [3].
Key Requirements under the DSA:
- Transparent Labeling: All ads must be clearly marked [4].
- Advertiser Identification: Platforms must disclose who paid for the ad [4].
- Targeting Information: Ad platforms must reveal the primary factors used to target users, such as demographics, location, or interests [4].
[1] [Deutsche Presse-Agentur][2] [European Commission][3] [Euractiv][4] [Digital Services Act (DSA)]
- The European Commission expressed concerns about TikTok's ad practices not meeting the transparency requirements set by the Digital Services Act (DSA), particularly regarding the lack of an ad registry and comprehensive public search functions.
- Amidst the EU's investigation of TikTok for potential DSA violations, the Commission highlighted the necessity for all digital platforms, including TikTok, to adhere to key provisions such as transparent labeling, advertiser identification, and revealing targeting information for ads.
