Introduction to TikTok’s Advertising Transparency Issue

TikTok may be facing a new challenge over its advertising transparency, as part of the ongoing scrutiny of big tech companies. The European Commission has officially cautioned TikTok that its advertising transparency tools are insufficient and fail to meet the requirements of maintaining a publicly accessible repository of all paid ads displayed to users.

The Concerns Over Advertising Data

Regulators are unhappy with the lack of data provided in the repository curated by TikTok. Specifically, they claim that TikTok has not provided adequate information on who paid for the ads, the target audience, and the specific product or service being promoted. This information is crucial for regulators and researchers to identify and eradicate harmful content, including scams, disinformation, and coordinated influence campaigns.

Background on the Digital Services Act

These rules fall under the Digital Services Act (DSA), an EU regulation adopted in 2022 that governs illegal content, transparent advertising, and disinformation. Enforcement of the DSA for Very Large Online Platforms (VLOPs) like TikTok began in the summer of 2023. The European Commission launched an investigation in February 2024 to assess whether TikTok had violated the DSA.

Statement from the European Commission

According to European Commission Tech VP Henna Virkkunen, "Transparency in online advertising — who pays and how audiences are targeted — is essential to safeguarding the public interest. Whether we are defending the integrity of our democratic elections, protecting public health or protecting consumers from scam ads, citizens have a right to know who is behind the messages they see."

Response from TikTok

In a statement to the press, a TikTok spokesperson disagreed with the findings, saying, "While we support the goals of the regulation and continue to improve our ad transparency tools, we disagree with some of the Commission’s interpretations and note that guidance is being delivered via preliminary findings rather than clear, public guidelines." This incident is not the first time TikTok has faced issues with internet safety regulators in Europe.

Potential Consequences

Under the rules of the DSA, TikTok’s parent company, ByteDance, could face a fine of up to 6 percent of its total worldwide revenue and be subject to an enhanced supervision period. During this period, regulators will ensure that any required changes are implemented. This article originally appeared on Engadget at https://www.engadget.com/big-tech/eu-tech-chiefs-believe-tiktok-is-breaking-ad-transparency-rules-181706441.html?src=rss