European Union regulators have formally accused TikTok of contravening digital content regulations, citing a lack of transparency regarding advertisements displayed to users on the video-sharing platform.

The European Commission's preliminary investigation suggests TikTok's ad repository falls short of the Digital Services Act's requirements, the EU's executive body has asserted.

The Commission asserted that advertising databases are indispensable for researchers to identify fraudulent advertisements and hybrid threat campaigns, encompassing coordinated disinformation campaigns and deceptive ads, particularly concerning electoral processes.

The Digital Services Act (DSA) is an ambitious regulatory framework designed to sanitise social media environments and shield users from various online hazards, notably disinformation campaigns impacting electoral processes; platforms are obligated to furnish comprehensive transparency regarding digital advertising, encompassing clear explanations of ad targeting rationale and disclosure of sponsorship.

The Commission asserted that TikTok fails to furnish requisite details regarding advertisement content, target demographics, and sponsor identification; moreover, the database's inadequate search functionality impedes comprehensive ad analysis, "thereby diminishing the tool's overall efficacy," they stated.

TikTok stated that they are currently scrutinising the Commission's conclusions and reaffirm their dedication to adhering to their responsibilities under the Digital Services Act (DSA).

"Although we remain committed to the regulation's objectives and are consistently enhancing our ad transparency resources, we take issue with certain interpretations put forth by the Commission, observing that guidance is being disseminated through preliminary conclusions rather than explicit, publicly accessible directives," the company asserted in a statement.

Henna Virkkunen, the commission's executive vice-president for tech sovereignty, security and democracy, asserted that the ad database's limitations preclude a comprehensive assessment of the risks stemming from its ad targeting mechanisms.

Virkkunen asserted that elucidating the financial mechanisms and audience-targeting strategies underpinning online advertising is paramount to upholding the public interest, emphasizing that transparency is indispensable for safeguarding democratic electoral processes, bolstering public health initiatives, and shielding consumers from fraudulent advertisements; therefore, citizens are entitled to full disclosure regarding the source and motivations behind the online messaging they encounter.

TikTok has been afforded an opportunity to respond before the Commission renders its final verdict, which could entail a penalty of up to 6% of the company’s annual worldwide turnover.

Separately, the EU is examining TikTok to ascertain whether it inadequately addressed hazards surrounding Romania's presidential election, which experienced considerable disruption last year due to claims of electoral malpractice and alleged Russian interference.