TikTok will permanently withdraw its controversial Lite Rewards programme in the EU to comply with the Digital Services Act (DSA) — a sweeping content moderation rulebook for online platforms.

TikTok Lite is the data-light version of the app, designed to work at slower internet connections and in devices with small memory capacity.

Its Rewards programme allows users to earn points by liking content, watching videos, following creators, and inviting friends to join the platform. They can then exchange these points for rewards, such as Amazon vouchers.

The strategy is as simple as it is disturbing: rewarding screen time with financial incentives.

The ByteDance-owned company launched the feature in France and Spain in March. A month later, the European Commission opened an official probe.

The Commission demanded that TikTok provide an immediate risk assessment, which it had failed to do prior to the launch — as required by the DSA. The regulators were concerned that the feature's addictive effects could negatively impact the physical and mental health of users, especially in the case of minors.

“The available brain time of young Europeans is not a currency for social media — and it never will be,” EU Commissioner Thierry Breton said in a statement today.

Next to killing Lite Rewards, TikTok has also committed to not launch any other similar programme that would circumvent the withdrawal.

The Commission said that it will closely monitor the company's compliance. Potential violations can lead to fines of up to 6% of its global annual turnover.

More probes as part of the DSA

While this marks the first case the EU has closed under the scope of the DSA, another one against (yes) TikTok is still ongoing.

Since February, the Commission has been investigating the company's measures on transparency and safety as well as the app's recommendation algorithm which may lead to addiction and rabbit hole effects.

The EU has also opened formal proceedings against X, Meta, and AliExpress.