Social Media

Digest: EU to Reduce Fines on Big Tech to Avoid US Backlash; TikTok Shop Expands in Europe

Today's digest looks at the latest surrounding Europe's Digital Markets Act, TikTok Shop expanding further into Europe and Reddit enhancing features for advertisers.

EU to lessen DMA blow on Apple and Meta to avoid US backlash

The European Union is set to impose reduced fines on Apple and Meta as part of its Digital Markets Act (DMA) investigations, aiming to avoid escalating tensions with the US, according to the Financial Times.

While the EU initiated DMA fines against Apple, Meta, and Google last March, the latest reports suggest that fines for the tech giants will be significantly lower than the maximum 10% of global annual turnover. However, the European Commission is still expected to enforce changes to their services.

TikTok Shop Expands in Europe as US Future Remains Uncertain

TikTok Shop is launching in France, Germany, and Italy today (31st March), expanding its e-commerce footprint in Europe. The platform, which has been available in the UK since 2021, is increasing its European rollout while facing an uncertain future in the US.

TikTok’s Chinese parent company, ByteDance, must sell its US operations or risk a potential ban. Meanwhile, TikTok Shop is actively working to onboard more European sellers, aiming to reduce reliance on China-based merchants.

A TikTok executive stated that the company expects a faster launch in Europe compared to the UK, where it initially had to educate sellers and refine its approach to the e-commerce model.

Reddit Expands Conversation Ads with Enhanced Features

Reddit is upgrading its Conversation Ads offering, allowing advertisers to place promotions within the comment sections of posts. Following its initial launch in June last year, the latest update will provide larger media space, improved ad placement, and better display options. Reddit confirmed that all advertisers running Conversation Ads will now have their promotions seamlessly integrated between user comments on conversation pages.

Sheila Obeng-King

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