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

Preliminary findings from the EU Commission's investigation indicate that TikTok's ad repository fails to meet the requisite standards stipulated by the Digital Services Act (DSA).

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

Encompassing a broad spectrum, the Digital Services Act (DSA) endeavors to sanitise social media environments and safeguard users from hazards, notably disinformation campaigns that could impact elections; platforms must ensure transparency regarding digital advertising, furnishing users with justifications for ad targeting and disclosing financial sponsors.

The Commission asserted that TikTok fails to furnish requisite details pertaining to advertisement content, target demographics, and sponsorship, further contending that the database's inability to facilitate exhaustive searches based on these parameters curtails its overall efficacy.

TikTok stated that they are scrutinizing the Commission's conclusions and remain dedicated to fulfilling their obligations under the Digital Services Act (DSA).

"Although we remain committed to the regulation's objectives and are consistently enhancing our ad transparency instruments, we contest certain interpretations made by the Commission, observing that guidance is being disseminated through provisional 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 deficiencies in the advertising database preclude a comprehensive evaluation of the potential hazards stemming from its ad targeting mechanisms.

Virkkunen asserted that transparency in online advertising, specifically regarding remuneration and audience targeting methodologies, is paramount to preserving the public interest. She elaborated that, be it fortifying the integrity of democratic elections, safeguarding public health, or shielding consumers from fraudulent advertisements, citizens are inherently entitled to know the identities of those orchestrating the messages they encounter.

TikTok now has the 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.

In a parallel EU inquiry, TikTok faces scrutiny regarding its alleged failure to mitigate risks surrounding Romania's presidential election, an event destabilized last year by claims of electoral irregularities and Russian interference.