8 October 2020, Budapest – The Hungarian Competition Authority (GVH) has initiated an investigation against the operator of video sharing social media site TikTok due to failure to provide users with sufficient information on time.
TikTok is a widely available video sharing social network service having a significant number of users, including many children, in Hungary as well. The GVH has initiated an investigation against the service provider, which is registered in the United States with Chinese ownership, because it is alleged that the undertaking may fail to act with due diligence required by the principles of good faith and fairness when informing its consumers about significant features regarding the operation of the online platform, such as the scope of data handled during the use of the service and the utilisation of such data.
The suspicion of infringement is also supported by the fact that the undertaking subject to the proceeding has failed to make the information regarding the most important conditions of the platform’s operation and of using the services provided by TikTok available in Hungarian language for consumers in Hungary, whom it has nevertheless targeted with commercial communication in Hungarian.
The GVH also considers it likely that the undertaking subject to the proceeding may have failed to act with the expected professional diligence in order to moderate the exposure of children and minors to advertising during the use of the TikTok platform and service.
The initiation of the competition supervision proceeding does not mean that the undertaking has in fact committed the suspected infringement. The procedure is aimed at clarifying the facts and thereby proving the alleged infringement. The time limit for the completion of the proceeding is three months which, where justified, may be extended on two occasions by a maximum of two months each.
The official registration number of the case is: VJ/24/2020.
GVH Press Office