European Union regulators have formally accused TikTok of failing to meet the transparency standards required under the Digital Services Act (DSA), a move that could result in heavy financial penalties for the platform’s parent company, ByteDance. The charges, announced on Thursday, follow an investigation launched in early 2023 and center on the app’s alleged failure to provide clear information about advertisements shown to its users.
In its preliminary assessment, the European Commission said TikTok neglected to implement a publicly accessible advertisement repository. This repository, mandated by the DSA, is intended to allow users and researchers to track advertising content, identify potential scams, and understand how ads are targeted — including details about who is funding them.
EU accuses TikTok of violating core transparency rules
According to the Commission’s findings, TikTok did not supply critical data about the nature of its advertisements, the profiles of targeted users, or the entities behind the paid promotions. Such shortcomings, regulators argue, constitute a breach of key provisions in the DSA, which came into effect to curb the spread of illegal or harmful online content and to increase accountability among large digital platforms.
Henna Virkkunen, the EU’s Commissioner for Digital Policy, emphasized the importance of transparency in her statement. “Knowing who pays for online advertising and how users are being targeted is vital to protecting public interests,” she said.
The DSA places stringent responsibilities on major tech platforms, requiring them to clearly disclose how their advertising systems function, including targeting mechanisms, payment sources, and content classification. By allegedly failing to do so, TikTok may be liable for penalties reaching up to 6% of its global revenue, as stipulated in the regulation.
TikTok defends its position amid regulatory pressure
In response to the allegations, TikTok expressed disagreement with the Commission’s interpretation of the law. A spokesperson for the company acknowledged TikTok’s ongoing efforts to enhance transparency around advertisements but criticized the EU’s approach.
“While we support the DSA’s objectives and continue to strengthen our ad transparency tools, we disagree with some of the Commission’s interpretations,” the spokesperson said. “Moreover, these preliminary findings are being delivered in the absence of definitive, publicly available guidance.”
TikTok also highlighted the importance of equitable enforcement across platforms, warning that selective or unclear regulation could lead to inconsistency in the industry. “A fair regulatory environment depends on clear rules and consistent application,” the company added.
The platform now has the opportunity to examine the European Commission’s documentation and submit a formal written reply. The Commission has yet to issue a final ruling, and TikTok’s defense will form part of the ongoing deliberations before any sanctions are imposed.
Ongoing scrutiny and wider implications
The case adds to the growing scrutiny surrounding TikTok in Europe. The app is already the subject of a separate DSA investigation related to its handling of election-related risks, with EU officials examining how the platform mitigates misinformation and other threats to democratic processes.
The European Union has significantly ramped up oversight of digital platforms under the Digital Services Act, which became fully enforceable in 2023. The legislation applies to very large online platforms (VLOPs) with over 45 million monthly users in the EU and obliges them to proactively combat harmful content, safeguard user data, and operate with greater transparency.
This new enforcement action against TikTok marks one of the most high-profile DSA cases to date. Other major tech companies such as Meta, Amazon, and X (formerly Twitter) are also under similar investigations as the EU pushes to reshape the rules of digital engagement.
Regulatory landscape tightening worldwide
Globally, regulators have begun taking a firmer stance against tech giants, especially regarding user privacy, platform accountability, and misinformation. The EU’s Digital Services Act is one of the most ambitious attempts to set a comprehensive regulatory framework for the digital economy, and its enforcement efforts could set precedents for similar actions in other regions.
If found guilty of violating the DSA, ByteDance could face a fine amounting to billions of dollars, depending on the final assessment of damages and breaches. In the meantime, the company’s legal and compliance teams are expected to push for a resolution that avoids the worst-case scenario.
With Europe leading the charge in digital regulation, platforms like TikTok may find themselves forced to overhaul their systems not only in the EU but worldwide, as regulatory models evolve and align across borders.
