European Union regulators have issued a warning to TikTok regarding potentially addictive features on its TikTok Lite app, threatening the company with fines and even a possible forced suspension of the app in certain regions. The EU investigation focuses on new features that allow users to earn rewards like gift cards for engaging with content on the app, creating concerns about addiction and mental health issues, especially for children. This action comes as the US Senate is set to vote on a bill that could force ByteDance, TikTok's owner, to sell the app due to national security concerns.

Under the Digital Services Act, TikTok was required to submit a risk assessment before introducing these new features, but the company failed to do so. The EU has given TikTok until April 23 to provide the necessary information, or face fines of up to 1% of its annual revenue, as well as additional penalties. The European Commission has also given TikTok 48 hours to defend its reward program, with a potential suspension of the feature in TikTok Lite looming if the company fails to comply.

This move by the EU represents a significant step in utilizing the powers granted under the Digital Services Act, with officials emphasizing the importance of protecting minors from potential harm. TikTok has yet to respond to the warnings from the EU, but the company could face serious consequences if it does not meet the regulatory requirements set forth by the European Commission.