Even though the sell-off bill has been cleared in the U.S. by the Government, the company is facing new challenges in Europe after EU officials have launched an investigation into the latest initiative from TikTok - the move that gives users in some regions money for how much they use the app.

Now, in reaction to that question, TikTok has announced it's closing the "TikTok Lite" rewards program, which may expose it to sanctions for violating the EU Digital Services Act (D.S.A.).

According to Reuters:

"TikTok will voluntarily suspend its new app TikTok Lite's reward program while it tries to resolve EU concerns, the company said on X social media platform on Wednesday."
TikTok has a rewards program that provides users with points based on the actions taken within the app. These explainers below (in French) remind users of points they can earn by discovering and liking videos within the app.

One of the issues raised by EU officials relates to the potential for this scheme to increase app addiction, especially in younger users. Such concerns have led to all those programs that may increase systemic risks being submitted for evaluation to EU officials before implementation.

If TikTok failed to act, it may be on the receiving end of fines today, as EU officials are permitted to impose penalties worth up to 6 per cent of a company's global revenue for violating the bloc.
And that's why it moved quickly to close down the program after working with EU officials in response to their concerns.

Chances are minor that TikTok would face substantial fines in the wake of the initiative. However, EU investigators will try to make the case an example of the new D.S.A. regulations.

And it's another headache for the company, which, apart from the sell-off push in America, is also reeling under the slowdown of users and low interest in its ongoing shopping push.

It certainly has its share of issues to deal with, and it would be interesting to see whether TikTok is penalized for the program, and what the penalty might be.