European Commission Finds Preliminary Breach in TikTok Algorithm, Potential Fine of 6%

Key Facts

The European Commission has preliminarily concluded that the design of TikTok’s “For You” feed violates requirements under the Digital Services Act, saying the company failed to implement proportionate, reasonable and effective measures to limit risks linked to its recommendation systems. Reuters reported that the Commission’s announcement was a set of preliminary findings in a case concerning risk assessment and mitigation measures, not a final decision finding the platform in breach. The Commission says the feed’s operation may expose users to a repeated stream of similar content. Commission Vice-President Henna Virkkunen said the algorithm “every time a user scrolls past a video or likes it on TikTok, the algorithm shows them more similar content, leading users down paths that are difficult for them to exit easily.” The assessment puts the design of recommendations at the center of the regulatory dispute, alongside the adequacy of the company’s measures to limit risks.

According to the Commission’s description, reported by Reuters, recommendations take shape as users engage with a particular type of content, prompting other similar videos to appear. The Commission said repeated exposure to such content may harm mental health, and that the preliminary findings concern risk assessment and mitigation measures. The core of the case therefore extends beyond any specific content to include how TikTok assesses the possibility that repetition could lead users into what the Commission described as a “rabbit hole,” and whether the platform’s measures are effective in reducing that possibility. The Digital Services Act provides the framework for examining these obligations, requiring large platforms to make greater efforts to address harmful and illegal content. Reuters reported that the Commission said TikTok’s measures were not sufficiently proportionate, reasonable and effective to address the risks it identified.

Among the measures cited by the Associated Press was a “Not interested” button TikTok added to limit the impact of repeated recommendations. But the Commission said the measure was not effective in reducing how often harmful content was suggested. The Commission wants the company to change the design of its “For You” algorithm and give users’ explicit preferences greater weight in determining what they see. It also wants recommendation controls to be easier to access and use, and the algorithm to undergo regular testing. The Associated Press added that the proposed changes include ending reliance on video watch time as a criterion for recommending other content. The demands link how videos are ranked with the options users have to influence their feed, including reducing the weight given to the viewing-time signal and providing more effective controls.

TikTok parent ByteDance faces a potential fine of up to 6% of its total annual global turnover if the matter is not resolved, Reuters reported, adding that the fine could be imposed next year. That possibility remains tied to the outcome of the case and the company’s ability to address the Commission’s concerns; the findings announced so far are preliminary and do not constitute a final ruling. TikTok will have an opportunity to respond to the findings before the Commission issues its final decision, according to the Associated Press. This means the required measures and the company’s response will come before the case is resolved, while the potential fine sets a clear financial ceiling for the consequences of failing to resolve the matter. The sources gave no more precise timing for a possible fine than to say it could come next year.

The case is part of broader European scrutiny of recommendation-system design at social media platforms. Under the Digital Services Act, large platforms must make greater efforts to address harmful and illegal content, the framework underpinning the Commission’s allegations against TikTok. The Commission is separately investigating the “rabbit hole” effects that may result from recommendation systems on Meta’s Facebook and Instagram, Reuters reported. That remains a separate investigation from the preliminary findings concerning TikTok, but shows that European scrutiny covers recommendation systems across more than one platform. In the TikTok case, the next steps are for the company to respond and for the Commission to issue its final decision; the proposed changes involve redesigning the feed, strengthening explicit preferences, and improving controls and regular testing.