TikTok’s advertising repository is in breach of the EU’s online platforms rules, the European Commission said on Thursday with the publication of preliminary findings in its Digital Services Act (DSA) probe which it began in February 2024.
Under the DSA, very large online platforms need to have such an advertising repository in place for researchers and civil society to detect scam advertisements and hybrid threat campaigns.
The Commission’s investigation found that video sharing app 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.
In addition, TikTok’s repository “does not allow the public to search comprehensively for advertisements on the basis of this information, thereby limiting the usefulness of the tool,” the Commission said in a statement.
TikTok may now defend itself by examining the documents and replying in writing. If the Commission's preliminary views are confirmed, however, the company could face a fine of up to 6% of its total worldwide annual turnover.
A TikTok spokesperson said that the company is reviewing the findings.
"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," the spokesperson said.
The DSA became applicable for the largest online platforms at the end of 2023, and for all other platforms in February 2024. The EU executive has begun several probes since.
The February 2024 investigation into TikTok also covered the negative effects stemming from the design of TikTok's algorithmic systems, 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.
In December, the Commission began a probe against the company suspecting it of breaching the DSA by not adequately mitigating risks linked to the integrity of Romania's election. This is still pending.
None of the other investigations, including those into X, Meta and AliExpress, have been wrapped up.
This story has been updated with a comment from TikTok.
