On Thursday, EU regulators accused TikTok of breaking digital content rules due to a lack of transparency regarding the advertisements shown to users of the video-sharing app.

According to a draft report, the EU Commission's investigation revealed that TikTok's ad library fails to meet the standards required by the Digital Services Act (DSA).

The committee stated that an advertising database is essential for researchers to detect not only fraudulent ads but also hybrid threat campaigns, coordinated disinformation operations, and fake advertisements, particularly in situations related to elections.

The Digital Services Act (DSA) is a comprehensive set of rules designed to regulate social media platforms and protect users from risks such as election-related disinformation. Platforms must be transparent about digital advertising, explaining why specific ads are displayed to users and who is funding them.

The committee stated that TikTok fails to provide essential details regarding ad content, target audiences, and who pays for the advertisements. This lack of information prevents a comprehensive search of ads within their database, "limiting the tool's effectiveness."

TikTok stated they are reviewing the committee's findings and are committed to ongoing efforts to meet their obligations under the DSA.

The company stated that while they support the goals of the regulations and are continuing to improve advertising transparency tools, they disagree with some of the committee's interpretations and are concerned that guidance is being communicated through draft outcomes rather than clear disclosure guidelines.

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

"Bilkunen stated that transparency in online advertising, meaning information on who pays for ads and how targets are selected, is crucial for protecting the public interest. He added that citizens have the right to know who is behind the messages they see, whether to ensure fair democratic elections, protect public health, or shield consumers from fraudulent advertising."

TikTok will have the chance to present its views before the committee makes a final decision, which could result in a fine of up to 6% of the company's global annual revenue.

TikTok is also under a separate EU investigation to determine whether it failed to adequately address risks related to the Romanian presidential election last year, which was disrupted by allegations of election violations and Russian interference.