European Union regulators have formally accused TikTok of contravening digital content regulations, citing a lack of transparency regarding the advertisements displayed to its user base.

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

The Commission asserted that advertising databases are indispensable for researchers to identify fraudulent advertisements and hybrid threat campaigns, encompassing coordinated disinformation campaigns and counterfeit ads, notably within electoral contexts.

Encompassing a broad spectrum of stipulations, the Digital Services Act (DSA) endeavors to refine social media platforms and safeguard users from multifaceted hazards, notably disinformation campaigns that could subvert electoral processes; compliance necessitates that platforms exercise transparency concerning digital advertising, furnishing users with elucidations as to the rationale behind specific ad deployments and revealing the identity of the financial sponsor.

The Commission asserted that TikTok fails to furnish requisite details regarding ad content, targeted demographics, and sponsor identification; furthermore, the database's limitations impede comprehensive ad searches based on this information, "thereby diminishing the tool's overall efficacy," it stated.

TikTok stated that they are currently scrutinising the Commission's conclusions and reaffirm their dedication to adhering to their obligations under the Digital Services Act.

"Although we endorse the regulatory objectives and remain committed to enhancing the transparency of our advertising mechanisms, we contest certain interpretations put forth by the Commission, observing that guidance is being disseminated through preliminary 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 the linchpin of safeguarding public welfare lies in the transparency of online advertising, specifically concerning financial backing and audience targeting. She elaborated that citizens are entitled to know the source of the messages they encounter, be it to uphold the legitimacy of democratic elections, shield public health, or insulate consumers from fraudulent advertisements.

TikTok now has the opportunity to respond before the Commission renders its definitive decision, potentially incurring a penalty of up to 6% of the company's annual worldwide turnover.

Separately, the EU is investigating TikTok concerning its alleged failure to mitigate risks related to Romania's presidential election, which was significantly destabilized last year by claims of electoral irregularities and Russian interference.