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The European Commission has initiated a formal investigation to determine whether TikTok has failed to comply with the Digital Services Act (DSA), a new regulation designed to safeguard minors online. This inquiry, announced on Monday, targets the social media platform’s design and privacy settings, scrutinizing their adherence to the EU’s latest standards for online child protection.

Launched following a preliminary review in September, this investigation aims to assess TikTok’s algorithmic functions, particularly those that could potentially foster addictive behaviors or lead users down harmful content pathways, commonly referred to as “rabbit hole effects.” The probe will also examine whether TikTok has implemented sufficient privacy, safety, and security measures for minors and if it meets DSA requirements concerning the transparency of advertisement repositories.

Should the European Commission find TikTok in violation of the DSA, the platform could face penalties amounting to as much as 6 percent of its global revenue.

In response to the investigation, a TikTok spokesperson reaffirmed the platform’s dedication to the safety of its younger audience, highlighting its efforts to collaborate with industry experts and regulatory bodies. The company added that they have ” pioneered features and settings to protect teens and keep under 13s off the platform, issues the whole industry is grappling with.”