Social network TikTok will permanently remove the user rewards feature on the app used in France and Spain, following pressure from European regulators, the European Union (EU) and the Chinese company said.
The TikTok Lite platform arrived in France and Spain - the only EU countries where it is available - in April this year. Users over the age of 18 can earn points for watching and liking videos, which they exchange for goods like vouchers or gift cards through a rewards program.
"We have managed to permanently withdraw the 'TikTok Lite Rewards' program, which could have addictive effects," said European Commissioner for the Internal Market Thierry Breton.
TikTok Lite is a smaller version of the popular TikTok app, which takes up less memory on your smartphone and is designed to work over a slower internet connection.
TikTok pledged to remove the program from the 27-nation bloc and not to run "any other program that would circumvent the withdrawal," the European Commission said in a statement.
It is the first major victory for the European Union's landmark Digital Services Act (DSA), a sweeping new law that requires digital firms operating in the bloc to effectively monitor online content to protect users from harmful effects.
The commission launched an investigation into the Lite app in April over concerns about "addictive" effects, forcing TikTok to temporarily suspend the program.
The case is now closed after TikTok, owned by Chinese company BiteDance, entered into binding commitments.
Any breach of the promise could lead to heavy penalties under the DSA.
"We will closely monitor TikTok's compliance. Today's decision also sends a clear message to the entire social media industry," said Commission Executive Vice President Margrit Vestager.
TikTok has confirmed that it has "now withdrawn" the rewards program.
"We always strive to cooperate constructively with the European Commission and other regulators. TikTok is pleased to have reached an amicable solution," a company spokesperson said.
TikTok remains under investigation following a separate investigation launched in February amid concerns that the social network may not be doing enough to tackle negative impacts on young people.
TikTok is among 25 "very large" online platforms, including Facebook, Instagram and YouTube, which must comply with stricter DSA rules from August 2023.
The rules also expect digital retailers to act effectively to protect online shoppers.
The DSA gives the EU the power to fine companies up to six percent of their global annual revenue.
Repeat offenders may see their platforms blocked in the EU.
Investigations into the social network X (X), formerly known as Twitter, as well as the Chinese online site for sales AliEkpress (AliExpress), and the company Meta, within which Facebook and Instagram operate, are also ongoing.
TikTok is also facing a number of problems across the Atlantic. The Chinese company that owns TikTok has filed a lawsuit to stop a US law requiring the app to be sold next year or face a US ban. BiteDance claims that this violates the First Amendment right to free speech.
The United States stepped up pressure on TikTok last Sunday with a lawsuit, accusing the app of violating children's privacy by collecting data about them without their parents' permission when they use the platform.
TikTok said it disagrees with the allegations and that the company has safeguards in place to provide age-appropriate experiences.
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