TikTok announced it is shutting down its “TikTok Lite” rewards program after EU officials launched an investigation. The program paid users in certain regions based on how much they used the app. 

“The Commission is concerned that the ‘Task and Reward Program’ of TikTok Lite, which allows users to earn points while performing certain ‘tasks’ on TikTok, has been launched without prior diligent assessment of the risks it entails, in particular those related to the addictive effect of the platforms, and without taking effective risk mitigating measures,” the European Commission said in a statement last week.

The EC also reiterated that under the EU Digital Services Act (D.S.A.), programs that may increase systemic risks must undergo regulatory assessment before rollout.

TikTok failed to submit its rewards scheme for review before implementation, prompting the Commission’s probe. The company voluntarily suspends the program while it works to resolve the EU’s concerns.

“TikTok always seeks to engage constructively with the EU Commission and other regulators. We are therefore voluntarily suspending the rewards functions in TikTok Lite while we address the concerns that they have raised,” the company stated on X.

The EC outlined severe potential penalties for violating the D.S.A. – 1% of the company’s total annual income or worldwide turnover and periodic penalties of up to 5 % of its average daily income or worldwide annual turnover. 

The rewards program suspension adds to TikTok’s current challenges. The company faces a push from the U.S. government to sell off from its Chinese ownership.