The European Union has demanded TikTok provide more information about its new app, TikTok Lite, which pays users to watch videos. The EU's executive Commission has opened formal proceedings to determine whether the app breaches the bloc's new digital rules after its rollout in France and Spain. The commission is concerned about potential addictive design features that could harm children and wants to see the risk assessment that TikTok should have carried out before deploying the app in the EU.

TikTok Lite allows users to earn rewards, such as Amazon vouchers and gift cards on PayPal, by watching videos, liking content, and following content creators. The company failed to respond to a request for information last week, prompting the EU to give TikTok 24 hours to turn over the risk assessment and until Wednesday to argue its case. If TikTok still fails to respond, the commission warned of fines worth up to 1% of the company's total annual income or worldwide turnover.

The EU's push to rein in big tech companies like TikTok comes amid concerns about the potential risks associated with social media platforms, especially for children. European Commissioner Thierry Breton highlighted the risks of addiction, anxiety, depression, eating disorders, and low attention spans that platforms like TikTok could pose to young users. The commission is also conducting an ongoing investigation into the main TikTok app's compliance with the Digital Services Act, focusing on measures to curb systemic risks and behavioral addictions.

The EU is giving TikTok until April 26 to provide additional information on the TikTok Lite app's potential impact on the protection of minors and users' mental health. The commission is particularly interested in the measures TikTok has put in place to mitigate addictive behavior and other systemic risks. Any order to suspend the app's reward features could come as early as Thursday if TikTok fails to comply with the EU's requests.