On Thursday, European Union regulators accused TikTok of contravening the Digital Services Act, citing insufficient transparency regarding advertisements displayed to users of the video-sharing application.

In its preliminary findings, the European Commission has stated that TikTok's advertising repository fails to meet the standards mandated by the EU's Digital Services Act (DSA), which spans across the 27 member states.

The committee asserted that the advertising database is of paramount importance to researchers for detecting fraudulent ads, hybrid threat campaigns, coordinated information operations, and deceptive advertisements, emphasizing its crucial function, particularly within the context of elections.

The Digital Services Act (DSA) is a comprehensive framework designed to sanitize social media platforms and shield users from risks such as election-related disinformation; it mandates that platforms ensure transparency in digital advertising, including disclosing why specific ads are displayed and who funded them.

The committee highlighted the "limited utility" of TikTok's advertising tools, citing the platform's failure to provide essential details regarding ad content, target demographics, and payment sources, and the consequent inability to comprehensively search its database based on this information.

TikTok has stated they are currently reviewing the committee's findings and remain committed to fulfilling their obligations under the DSA.

In a statement, the company affirmed its support for the regulatory objectives and its commitment to refining tools for enhanced advertising transparency, while simultaneously contesting certain interpretations put forth by the committee; it further noted that the guidance was being provided through preliminary findings, rather than established public directives.

Henne Virkkunen, Vice-President of the Committee on Technology Sovereignty, Security and Democracy, stated that deficiencies in the advertising database impede a "complete verification" of the risks posed by advertising targeting systems.

Vilhunen asserted that transparency in online advertising—specifically, the financial backers and audience targeting methods—is paramount to safeguarding the public interest, emphasizing that citizens have a right to know the entities behind the messages they encounter, be it to protect the integrity of democratic elections, safeguard public health, or shield consumers from fraudulent advertisements.

TikTok has the opportunity to present its case before the committee's final ruling, a decision that could result in a penalty of up to 6% of the company's global annual revenue.

Furthermore, TikTok is also under investigation by the EU regarding its potential failure to address risks related to alleged electoral malpractice and Russian interference during last year's tumultuous presidential election in Romania.