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The European Commission has issued preliminary findings that suggest TikTok is failing to meet critical transparency requirements under the Digital Services Act (DSA), specifically regarding its advertisement repository. If confirmed, this non-compliance could lead to significant financial penalties for its parent company, ByteDance.
Under the DSA, major digital platforms are required to maintain publicly accessible ad repositories that detail who paid for an advertisement, the content of the ad, and the target audience. These tools are intended to help researchers, regulators, and civil society monitor online platforms for disinformation, coordinated influence operations, and fraudulent advertising.
According to the Commission’s ongoing investigation, TikTok’s current repository lacks key functionality and essential information. It does not sufficiently disclose details about sponsored content, fails to provide adequate targeting data, and limits public searchability. These shortcomings significantly reduce the repository’s effectiveness in ensuring transparency and accountability.
The inquiry stems from a broader investigation launched in February 2024, part of the EU’s effort to enforce digital regulations among very large online platforms. The Commission’s findings are based on technical testing, expert interviews, and analysis of internal documentation.
If the current assessment is upheld, TikTok could face a fine of up to 6% of its global annual turnover. In addition, the Commission may place the platform under enhanced supervision until the deficiencies are resolved.
The situation reflects growing pressure on digital platforms to align with stricter European standards for data transparency and consumer protection. The DSA aims to create safer digital environments by increasing accountability among online service providers, particularly in areas that influence democratic processes and public safety.
TikTok has publicly disagreed with the Commission’s interpretation, stating to Reuters that while it supports the DSA’s objectives, clearer guidance is needed. The company continues to develop its transparency tools but argues that enforcement should be consistent across the industry.
This regulatory challenge adds to a series of recent privacy issues for TikTok, including multimillion-euro fines from the Irish Data Protection Commission for data transfers and child privacy violations, highlighting the growing international scrutiny over the platform’s practices.
