EU Concerned Over New TikTok Lite Rewards Program
- Written by Shipra Sanganeria Cybersecurity & Tech Writer
- Fact-Checked by
TikTok faces renewed scrutiny from the EU about its spinoff app, TikTok Lite. In a fresh round of investigation, the Chinese-owned platform was asked for a risk assessment of its new service, which pays users for engaging with the platform, the European Commission said on April 17 .
The Commission’s concerns are believed to have been prompted by the potentially addictive nature of the reward-linked engagement feature and its negative effects on the mental health of young individuals.
“Is social media ‘lite’ as addictive and toxic as cigarettes ‘light’?” said European Industry Commissioner Thierry Breton on X , announcing the request for information. “We will spare no effort to protect minors under the #DSA.”
In the announcement, the European Commission also said that TikTok should have conducted a risk assessment on the app before its launch in any of the 27 EU member states. In addition to the 24-hour deadline of April 17, TikTok also needs to provide the other requested information by April 26.
The Commission also asked for information about the “measures the platform has put in place to mitigate such systemic risks.” The current move by the EU comes 2 months after the February investigation into TikTok’s possible breach of the European Digital Services Act (DSA) .
Despite security concerns regarding TikTok’s management of user data and the investigation into potential breaches of the DSA, the platform has garnered favor among the EU’s top political brass.
The shift in trend can be attributed to the platform’s increasing popularity among young people, especially for accessing news. According to a 2023 report by the Reuters Institute for the Study of Journalism , TikTok was the fastest-growing social network cited, with 20% of 18- to 24-year-olds using it for news consumption.
As a result, mainstream European politicians are embracing TikTok, especially as they prepare for the upcoming 2024 elections, aiming to connect with young voters.
Judge Rejects Tesla’s “Unfathomable” $56 Billion Pay Package for Elon Musk
- Written by Deep Shikha Content Writer
On April 17, the Guardian reported that Tesla asked its shareholders to reapprove CEO Elon Musk’s $56 billion pay deal set in 2018. A Delaware judge, Kathleen McCormick, had previously rejected this package in January, labeling it excessive and poorly justified. They called it an “unfathomable sum” and unfair to shareholders.
According to the Guardian, the compensation plan for Elon Musk does not include a traditional salary or cash bonuses. Instead, it offers incentives tied to Tesla’s market performance, with rewards set to kick in if the company’s value reaches up to $650 billion within the next decade. According to Google Finance , Tesla’s market value is around $460 billion.
In a letter to shareholders, Robyn Denholm, Tesla’s board chairperson, expressed the company’s discontent. “We do not agree with what the Delaware court decided, and we do not think that what the Delaware court said is how corporate law should or does work,” Denholm wrote.
This statement was part of a regulatory filing that also proposed another vote on Musk’s compensation, emphasizing Tesla’s challenge to the court’s previous decision.
Tesla also wrote in the filing that the company suggests subjecting the original 2018 package to a new shareholder vote if it’s legally advisable.
In addition, Tesla has urged its shareholders to support the move of the company’s state of incorporation from Delaware to Texas, as noted in another regulatory filing. This move could reflect a strategic shift in Tesla’s legal and corporate structure.
In 2023, Musk received no compensation from Tesla, maintaining his practice of forgoing a salary in favor of stock options. This approach to his pay structure highlights his investment in the company’s long-term performance rather than immediate cash earnings.
Tesla has had a fair share of issues this year. The company underperformed against market expectations and experienced its first decline in deliveries in 4 years. Also, last week, Elon Musk announced the layoff of approximately 10% of Tesla’s global workforce, roughly 14,000 employees, in response to the downturn in sales.
Ahead of the market opening, Tesla’s shares saw a modest increase of 1%, reflecting investor reactions to these developments. The ongoing saga around Musk’s pay and Tesla’s corporate decisions continues to draw significant attention from shareholders and the public alike.
