TikTok DSA investigation begins against backdrop of job losses

Scale of lay-offs uncertain as staff set to be redeployed across business

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Image: TikTok

The European Commission has launched formal proceedings against social network TikTok under the Digital Services Act (DSA), according to Reuters. If found guilty of breaching the DSA the Chinese-owned platform could face a fine up to 6% of its global revenue.

The news comes as it was announced the platform is shedding hundreds of jobs under a global restructuring of its training and quality division. A reduction in TikTok’s Irish headcount was announced last month when 20 jobs were cut in its small- to medium-enterprise business. To what extent the local operation totalling 3,000 staff will be affected by the latest reorganisation is uncertain but it is expected 70% of affected employees will be redeployed in the company as opposed to let go. In the meantime TikTok is still actively recruiting.

The DSA investigation is not the first time the TikTok has come under scrutiny in Europe. On 15 September 2023 year it was fined €345 million under the General Data Protection Regulation for violating childrens’ privacy by measures such as demanding ‘public by default’ security settings to view certain material.

At the time Anu Talus, Chair of the European Data Protection Board, wrote: “Social media companies have a responsibility to avoid presenting choices to users, especially children, in an unfair manner – particularly if that presentation can nudge people into making decisions that violate their privacy interests. Options related to privacy should be provided in an objective and neutral way, avoiding any kind of deceptive or manipulative language or design. With this decision, the EDPB once again makes it clear that digital players have to be extra careful and take all necessary measures to safeguard children’s data protection rights.”

The fine, described as “disproportionate” by the company, is being appealed.

The new investigation started with a complaint from the Dutch regulator, which was passed along to the Office of the Data Protection Commioner as TikTok’s European base is in Ireland.

The probe into TikTok is the second under the DSA, the first being X, formerly known as Twitter and owned by Elon Musk.

A recent study found that children under 18 worldwide spend 112 minutes a day on TikTok, up 107 minutes from 2022.

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