European Union regulators have formally accused TikTok of breaching the bloc’s Digital Services Act (DSA), potentially exposing its parent company, ByteDance, to fines of up to 6% of its global revenue.
The investigation, which began in February 2024, focused on TikTok’s failure to meet the DSA’s requirements for advertising transparency. The legislation, which came into effect in 2024, obliges major digital platforms operating within the EU to maintain publicly accessible advertisement repositories. These repositories enable researchers, regulators, and the public to scrutinise advertisements for fraudulent or misleading content.
According to the European Commission, TikTok has not provided adequate information about the nature of advertisements, the audiences targeted, or the entities financing them, thereby limiting transparency.
“Transparency in online advertising – who pays and how audiences are targeted – is essential to safeguarding the public interest,” said Henna Virkkunen, the European commissioner for digital affairs.
In addition to this charge, TikTok is also under a separate EU investigation concerning its management of risks linked to elections. The Digital Services Act represents one of the most comprehensive regulatory frameworks globally, demanding that platforms take greater responsibility for the content they host and the advertisements they display. Failure to comply can result in substantial penalties, with fines reaching up to 6% of a company’s worldwide turnover—a significant amount given TikTok’s extensive user base and revenue.
Before any sanctions are imposed, TikTok will be allowed to review the Commission’s findings and submit a written response, ensuring the company has the opportunity to address the allegations and propose corrective measures. As of now, TikTok has not issued a public comment on the charges.
For TikTok, which has hundreds of millions of users across Europe, adherence to these regulations is crucial not only for legal compliance but also for maintaining user trust and continued access to the European market. The outcome of this case may well influence regulatory approaches in other regions seeking to impose similar standards on social media companies.