On Thursday, European Union regulators levied accusations against TikTok, alleging breaches of digital content regulations due to insufficient transparency regarding the advertising displayed to users of the video-sharing application.

Preliminary findings from an ongoing European Commission inquiry suggest that TikTok's advertising repository falls short of compliance with the Digital Services Act (DSA), potentially violating the bloc's regulatory standards.

The committee stated that advertising databases are crucial for researchers in identifying deceptive advertising, hybrid threat campaigns, coordinated information operations, and fraudulent advertisements, "particularly within electoral contexts."

The Digital Services Act (DSA) constitutes a comprehensive framework designed to sanitize social media platforms and safeguard users from a spectrum of potential hazards, notably including election-related disinformation, stipulating that platforms ensure transparency in digital advertising, encompassing the provision of clear explanations to users regarding the rationale behind ad targeting and the identity of the financial sponsors.

The committee stated that TikTok failed to furnish essential details regarding advertisement content, target demographics, and payer identification. The database did not enable comprehensive advertisement searches based on this information, thereby "curtailing the tool's utility," according to the committee.

TikTok has stated that it is currently reviewing the Commission's findings and is committed to ensuring full compliance with its obligations under the DSA.

"While we endorse the regulation's objectives and are committed to enhancing our advertising transparency tools, we contest certain interpretations by the Commission, observing that the guidance is currently being disseminated via preliminary findings rather than explicit and publicly accessible directives," the company stated.

Henna Virkkunen, Vice-President of the committee overseeing technological sovereignty, security, and democracy, argued that limitations inherent in advertising data repositories impede comprehensive risk assessments pertaining to advertising targeting systems.

Virkkunen asserted that transparency in online advertising, specifically regarding the identity of those funding advertisements and the methodologies employed for targeting, is paramount to safeguarding the public interest. She elaborated, stating that irrespective of whether the objective is to uphold the integrity of democratic elections, safeguard public health, or shield consumers from deceptive advertising practices, citizens are entitled to know the individuals or entities underwriting the messages they are exposed to.

TikTok now has the opportunity to submit a formal response before the Commission issues its definitive ruling, a decision that could potentially result in a penalty of up to 6% of the company's total annual global revenue.

TikTok is under scrutiny in a separate EU investigation examining whether the company inadequately addressed risks related to the Romanian presidential election, which was marred last year by alleged electoral irregularities and Russian interference.