On Thursday, European Union regulators accused TikTok of breaching digital content regulations, citing insufficient transparency regarding the advertisements displayed to users of the video-sharing application.

Following an inquiry, the EU Commission's preliminary findings indicated that TikTok's advertising repository failed to meet the standards stipulated by the Digital Services Act (DSA) within the bloc.

The committee asserted that an advertising database is indispensable for researchers to detect not only fraudulent advertisements but also so-called hybrid threat campaigns, orchestrated disinformation operations, and counterfeit ads, specifying that this includes "election-related scenarios."

The Digital Services Act (DSA) is a comprehensive framework designed to regulate social media platforms, safeguarding users from risks such as electoral disinformation; it mandates transparency regarding digital advertising, requiring platforms to disclose why specific advertisements are displayed to users and who finances them.

The committee stated that TikTok's failure to furnish essential details regarding advertisement content, target demographics, and the entities financing these advertisements, impedes comprehensive ad searches within their database, thereby "constraining the tool's utility."

TikTok has stated that it is reviewing the committee's findings and remains committed to fulfilling its obligations under the Digital Services Act.

In a statement, the company affirmed its support for the regulatory objectives and ongoing improvements to ad transparency tools, but expressed disagreement with certain interpretations made by the committee, noting that guidance was being conveyed through draft findings rather than clear, published guidelines.

Henna Virkkunen, the Executive Vice-President of the Committee on Technology Sovereignty, Security, and Democracy, stated that flaws in advertising databases impede a "thorough examination" of the risks posed by advertising targeting systems.

"Vilkunen stated that transparency in online advertising—specifically, information regarding who finances advertisements and how targeting is determined—is crucial for safeguarding the public interest, adding, 'Whether we are upholding the integrity of democratic elections, protecting public health, or shielding consumers from fraudulent advertising, citizens have the right to know who is behind the messages they are exposed to.'"

TikTok will be afforded the opportunity to present its case before the committee renders its final decision, which could potentially result in a fine of up to 6% of the company's annual global turnover.

TikTok is also under separate EU scrutiny regarding its handling of risks linked to the Romanian presidential election last year, which was marred by allegations of electoral violations and Russian interference.