The European Commission has issued a stern warning to TikTok, accusing the platform of breaching EU digital laws by failing to provide transparency in its advertising practices. Under the Digital Services Act (DSA), major online platforms are required to maintain a public ad library that reveals who paid for ads, who was targeted, and the content of the promotions. TikTok reportedly did not meet these standards, prompting a formal investigation launched in February 2024.

If the preliminary findings are upheld, TikTok could face a penalty of up to 6% of its global annual turnover—a potentially multi-billion euro fine. The Commission emphasized that transparency in advertising is crucial for safeguarding democratic processes, especially ahead of significant elections in Poland, Portugal, and Romania.

This development comes amid ongoing EU scrutiny over TikTok’s role in potentially undermining election integrity in Romania. While that investigation continues, officials stress that TikTok’s lack of an effective ad repository hinders efforts to track and combat misinformation or coordinated influence campaigns.

TikTok has responded by expressing its commitment to the goals of the DSA while disputing some of the Commission’s interpretations. The company maintains it is improving its transparency tools and will fully cooperate with regulators.

The Commission is also examining broader concerns, including the impact of TikTok’s algorithms on user behavior, age verification systems, and child safety measures.