site.btaEC Preliminarily View Says TikTok's Advertising Violates Digital Services Act

The European Commission announced Thursday that it has informed TikTok of its preliminary view that the company does not fulfil the Digital Services Act (DSA)'s obligation to publish an advertisement repository. "Such an advertising repository is critical for researchers and civil society to detect scam advertisements, hybrid threat campaigns, as well as coordinated information operations and fake advertisements, including in the context of elections," the Commission said. 

The Commission has found that TikTok does not provide the necessary information about the content of the advertisements, the users targeted by the ads, and who paid for the advertisements. Moreover, TikTok's advertisement repository does not allow the public to search comprehensively for advertisements on the basis of this information, thereby limiting the usefulness of the tool. 

If the Commission's preliminary views were to be ultimately confirmed, the Commission may issue a non-compliance decision, which may trigger a fine of up to 6% of the total worldwide annual turnover of the provider as well as an enhanced supervision period to ensure compliance with the measures the provider intends to take to remedy the breach. The Commission can also impose periodic penalty payments to compel a platform to comply. 

The Commission opened formal proceedings against TikTok over a possible breach of the Digital Services Acton on February 19, 2024. In addition to advertising transparency, the opening of proceedings also covered the negative effects stemming from the design of TikTok's algorithmic systems (such as ‘rabbit hole effects' and behavioural addiction), age assurance, its obligation to ensure a high level of privacy, safety and security for minors, and data access for researchers, for which the investigation continues.

The Commission has also opened formal proceedings against TikTok in December 2024 on its management of risks related to elections and civic discourse, for which the investigation continues. These investigations are pursued by the Commission with priority.