EU charges TikTok for lack of ad transparency

On Thursday, May 15, 2025, European Union regulators announced that TikTok has been charged with breaching its online content rules. This accusation follows an extensive investigation that began in February 2024, focusing on TikTok's failures to comply with the Digital Services Act (DSA). The DSA was established to ensure that online platforms maintain a high level of transparency and accountability, especially regarding digital advertisements that users encounter. According to the preliminary findings of the European Commission, TikTok's ad repository does not meet the required standards, rendering it ineffective for researchers aiming to identify deceptive ads and orchestrated information campaigns, especially those related to elections. The Commission emphasizes the essential nature of ad transparency, stating that users deserve to understand the origin of the ads they see and the motivations behind their targeting. This lack of transparency not only affects consumer rights but also poses risks to democratic processes and public health. TikTok has stated that it is reviewing these findings and contends that it is committed to adhering to the DSA's obligations. However, the company voices disagreements regarding some interpretations of the findings while acknowledging the need for improvement in its advertisement-related transparency tools. The result of this investigation and the potential penalties could have significant implications, as violations could lead to fines reaching up to 6% of TikTok's global annual revenue. This has raised concerns regarding the impact of such rulings on its financial future. Following this development, TikTok has the opportunity to respond before the Commission finalizes its decision.