Following the launch of an investigation in February 2024, the Commission yesterday informed TikTok of its preliminary view that its advertisement repository falls short of what is required under the DSA.

It said TikTok had failed to provide necessary information about the content of the advertisements, the users targeted by the ads, and who paid for the advertisements.

TikTok’s ad repository also does not allow the public to search comprehensively for advertisements on the basis of this information, which the Commission said limits its usefulness. 

As part of its investigation, the Commission analysed internal company documents, tested TikTok’s tools and conducted interviews with experts in the field.

TikTok may now exercise its rights of defence by examining the documents in the Commission’s investigation file and by replying in writing to the Commission’s preliminary findings.

The Commission is also now consulting in parallel with the European Board for Digital Services.

TikTok faces a fine of up to six per cent of its total worldwide annual turnover if the Commission’s preliminary views are ultimately confirmed, in addition to other measures such as an enhanced supervision period or periodic penalty payments.

Henna Virkkunen, the Commission’s executive vice-president for tech sovereignty, security and democracy, said: “Transparency in online advertising — who pays and how audiences are targeted — is essential to safeguarding the public interest.

“Whether we are defending the integrity of our democratic elections, protecting public health, or protecting consumers from scam ads, citizens have a right to know who is behind the messages they see.

“In our preliminary view, TikTok is not complying with the DSA in key areas of its advertisement repository, preventing the full inspection of the risks brought about by its advertising and targeting systems.”

TikTok has been contacted for comment.