European Union accuses TikTok of breaching digital rules by lack of transparency on ads.

From Yahoo Finance: 2025-05-15 06:41:00

European Union regulators accused TikTok of breaching digital content rules by not being transparent enough about ads shown to users. The ad repository didn’t meet the standards required by the bloc’s Digital Services Act, hindering researchers’ ability to detect scam ads and misinformation, especially in the context of elections.

The Digital Services Act aims to clean up social media platforms and protect users from risks like election-related disinformation. Platforms must be transparent about digital ads, including why they’re shown and who paid for them. TikTok was found lacking in providing necessary information about the content of ads, users targeted, and who pays for them.

TikTok is reviewing the Commission’s findings and committed to meeting DSA obligations. While supporting the regulation’s goals, TikTok disagrees with some interpretations of the findings and notes the lack of clear public guidelines. The ad database’s shortcomings prevent a full inspection of the risks posed by its ad targeting systems.

The Commission stated transparency in online advertising is essential to safeguard the public interest, whether defending the integrity of democratic elections or protecting consumers from scam ads. TikTok has a chance to reply before a final decision is issued, potentially resulting in a fine of up to 6% of its annual global revenue.

TikTok is also under investigation for its role in Romania’s presidential election, which faced allegations of electoral violations and Russian meddling. The separate EU investigation aims to determine if TikTok adequately addressed risks to the election, further highlighting concerns about the platform’s transparency and compliance with regulations.



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