FILE PHOTO: A TikTok logo is displayed on a smartphone in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) - ByteDance's TikTok has agreed to permanently withdraw its TikTok Lite rewards programme from the EU to comply with the bloc's Digital Services Act (DSA), the European Commission said on Monday.
TikTok Lite has a "Reward Programme" that allows users to earn points while performing certain tasks on the platform such as watching videos, liking content, following creators or inviting friends to join.
The EU in April demanded an immediate risk assessment from TikTok on the app, shortly after it was launched in France and Spain, because of concerns about its potential impact on children and users' mental health.
Under the DSA, large online platforms are required to report potential risks of new functionalities to the EU before they are launched and have to adopt effective measures to address these risks.
The EU's executive branch said TikTok had now made legally binding commitments to withdraw the rewards programme from the EU and to not launch any other programme that would circumvent that decision.
"Any breach of the commitments would immediately amount to a breach of the DSA and could therefore lead to fines," the commission said.
Another investigation whether TikTok breached online content rules aimed at protecting children and ensuring transparent advertising was still ongoing, it added.
That investigation was opened in February and put the social media platform at risk of a hefty fine.
(Reporting by Bart Meijer; editing by Philip Blenkinsop)
