European Commission Charges TikTok Over EU Ad Transparency Violations

The European Commission has initiated formal proceedings against TikTok, citing violations of the Digital Service Act (DSA) related to online advertisement transparency. This marks the second formal action against the popular social media platform since November 2024.

According to the Commission, TikTok failed to publish a publicly accessible repository of advertisements, a key DSA requirement designed to help users identify scam ads and understand ad content.

Beyond the absence of ad listings, TikTok also did not disclose critical information about who the ads are targeting or how they are funded. This lack of transparency undermines user protection and regulatory oversight.

If found non-compliant, TikTok's parent company ByteDance could face fines up to 6% of TikTok's global turnover, excluding additional penalties. The Commission may also impose stricter supervision to enforce compliance.

This latest action follows a previous proceeding initiated last year, where TikTok was accused of failing to properly assess and mitigate systemic risks related to election integrity during Romania's presidential election.

While these charges are specific to the EU, TikTok users worldwide should remain vigilant against scams and misleading advertisements. The platform provides an in-app reporting feature accessible via the "Share" button, allowing users to flag suspicious content under categories such as "Fraud and Scams."

The European Commission and TikTok representatives have not yet publicly commented on the ongoing proceedings.

Broader Implications for Digital Platforms

The enforcement of the Digital Service Act represents a significant shift in how digital platforms must operate within the EU, emphasizing transparency, user safety, and accountability. Platforms like TikTok are now required to provide clear visibility into advertising practices, including funding sources and targeting criteria, to prevent misuse and protect consumers from deceptive content.

This regulatory environment encourages platforms to adopt robust content moderation and risk management strategies. It also sets a precedent for other jurisdictions considering similar legislation to safeguard digital ecosystems.

Actionable Insights for Businesses and Users

Businesses operating digital platforms should prioritize compliance with transparency mandates to avoid substantial penalties and reputational damage. Implementing clear ad repositories and disclosure mechanisms can build user trust and meet regulatory expectations.

For users, awareness and proactive reporting of suspicious advertisements are critical. Leveraging platform tools to flag fraudulent content helps maintain a safer online environment and supports regulatory enforcement efforts.