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TECH

EU questions TikTok over ‘addictive’ new Lite app launched in Spain

The EU gave TikTok 24 hours to provide a risk assessment on its new Lite app launched in France and Spain over concerns of its potential impact on children and users' mental health, the European Commission said on Wednesday.

EU questions TikTok over 'addictive' new Lite app launched in Spain
The logo of the Chinese social network application TikTok Lite. (Photo by Kiran RIDLEY / AFP)

The new rewards app TikTok Lite arrived in the two countries this month and allows users aged 18 and over to earn points that can be exchanged for goods like vouchers or gift cards.

The commission said TikTok, owned by China’s ByteDance, should have carried out the risk assessment before deploying the app and now wants “more details”.

The demand “concerns the potential impact of the new ‘Task and Reward Lite’ programme on the protection of minors, as well as on the mental health of users, in particular in relation to the potential stimulation of addictive behaviour”, it said.

The commission said in a statement it also wants to know what measures the platform has put in place to mitigate the risks identified.

The request for information was made under a new content moderation law known as the Digital Services Act (DSA), which has stringent rules for 22 of the world’s biggest online platforms including TikTok.

The demand is a first step in a procedure and does not mean TikTok will face further action. That would depend on what information the company gives to the EU.

Alongside the 24-hour deadline for the risk assessment, TikTok must provide the other information by April 26, the commission said.

The company said it would honour the request.

“We have already been in direct contact with the commission regarding this product and will respond to the request for information,” a TikTok spokesperson said.

This is not the first time TikTok is in the European Union’s crosshairs.

Brussels in February opened a formal probe under the DSA into TikTok over alleged breaches of its obligations to protect minors online.

Its focus is especially on whether the company is doing enough to address negative impacts on young people.

The commission has made similar requests for information from TikTok over other issues including the risks to upcoming EU elections in June from artificial intelligence.

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ECONOMY

Madrid approves sale of Vodafone’s Spanish unit

Spain's government has approved the sale of British mobile phone giant Vodafone's Spanish division to investment fund Zegona for up to €5.0 billion.

Madrid approves sale of Vodafone's Spanish unit

Digital Transformation Minister José Luis Escrivá said Madrid had given the green light because the London-based fund has committed to “a very substantial investment plan in the telecommunications sector over the medium term, in both fixed and mobile telephony”.

Vodafone announced in October that it had reached a deal to sell its Spanish business to Zegona, which was founded by two former Virgin Media executives, as part of its efforts to streamline its European operations under pressure from shareholders.

Under the terms of the deal the investment fund will pay Vodafone €4.1 billion ($4.4 billion) in cash, and up to 900 million shares in Zegona, which is listed in London.

The deal is expected to be completed at the end of May, Vodafone said in a statement.

The company said it now plants to start a €500-million share buyback programme on May 15th as part of its plans to return €2.0 billion to shareholders over 12 months.

In a further streamlining, Vodafone in June agreed to merge its British operations with Three UK, owned by Hong Kong-based CK Hutchison, to create Britain’s biggest operator with 27 million customers and accelerate rollout of faster 5G connectivity.

The group, which has more than 300 million mobile customers in Europe and Africa, is heavily focused on accelerating rollout of 5G in the UK.

At the end of 2022, Vodafone unveiled a huge deal with investment firms GIP and KKR to form a joint venture that would maintain its majority stake in European masts division Vantage Towers.

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