TikTok Photo:VCG

TikTok said the company is reviewing the European Commission (EC)'s preliminary findings and remained committed to meeting obligations under the Digital Services Act (DSA), as the EC on Thursday accused TikTok of breaching EU's digital content rules by claiming that the company is not being transparent enough about ads shown to users of the video sharing app.

"While we support the goals of the regulation and continue to improve our ad transparency tools, we disagree with some of the Commission's interpretations and note that guidance is being delivered via preliminary findings rather than clear, public guidelines," TikTok told the Global Times.

"A level playing field and consistent enforcement are essential," the company stressed.

TikTok's ad repository isn't up to the standards required by the bloc's Digital Services Act, the EC said in preliminary findings from its investigation, the Associated Press (AP) reported.

The commission claimed that TikTok doesn't provide necessary information about the content of ads, the users targeted, and who pays for them. The database doesn't allow for a comprehensive search for ads based on this information, "thereby limiting the usefulness of the tool," it said, per AP.

TikTok now has a chance to reply before the EC issues its final decision, which could result in a fine of up to 6 percent of the company's annual global revenue, according to the report.

"In the short-video space, TikTok holds competitive advantages. In response to the EU's accusations, TikTok should protect its legitimate rights and interests through legal channels," Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance, told the Global Times on Friday.

Xiang noted that several US tech giants have also faced similar investigations in the EU, calling it a challenge that digital firms must navigate in their overseas expansion.

On 19 February 2024, the EC opened formal proceedings to assess whether TikTok may have breached the Digital Services Act, according to a statement on the EC website.

Under the DSA, the EC charged US social media company X in July 2024 of breaching the EU's online content rules and its blue checkmark deceiving users, Reuters reported.