The EU says TikTok didn't play by the rules when it came to its ads
And the consequences could be very costly.
Just when it seemed like TikTok was finally catching a breather after dodging a potential ban in the US and pulling back features that risked addicting teens, the app is back in the hot seat, this time in Europe.
The European Commission has preliminarily accused TikTok of breaking the bloc’s Digital Services Act (DSA), a sweeping law designed to keep Big Tech in check, especially when it comes to transparency and consumer protection. And if things don’t go TikTok’s way, the consequences could be very costly, think billions in fines.
Techloy
So, what exactly did TikTok do wrong?
The EU says the company's ad library doesn't give enough info about the ads on the platform, like their content, target audience, and who paid for them. These gaps are crucial because the transparency they lack helps researchers detect scam ads and political manipulation, especially during elections.
The rule in question, part of the Digital Services Act, mandates that large platforms provide a clear, searchable repository of ads, giving users and watchdogs insight into why they’re being targeted. If the commission’s findings are confirmed, TikTok could be fined up to 6% of its global annual revenue.
Louis Eriakha
To put that into perspective, TikTok reportedly made around $23.6 billion in revenue in 2024, and it’s projected to hit $33.1 billion in 2025 per Statista. That 6% fine could amount to well over $1.4 billion, a number that would make any legal department nervous. TikTok says it’s reviewing the EU’s findings and insists it’s working to comply with the DSA, but also argues that the Commission hasn’t provided enough clear, public guidance.
This isn’t just a TikTok problem. Meta was fined €1.2 billion ($1.3 billion) for data privacy violations under GDPR, the EU’s major data protection law that gives users control over their personal information, and Amazon got hit with a €746 million ($887 million) penalty. The EU clearly isn't pulling its punches for anybody.
With TikTok becoming a massive force in digital advertising, often seen as a serious challenger to Meta and Google in attracting younger audiences, regulators are paying close attention. But with mounting scrutiny over everything from algorithm risks to ad targeting flaws, it’s clear that TikTok’s global rise is coming with equally global headaches.
Louis Eriakha
