
EU accuses TikTok of violating digital rules over adverts
TOULOUSE: This image shows a screen displaying the Tiktok social media platform's logo and the European flag. The EU accused TikTok on May 15, 2025, of breaking digital rules after concluding that the Chinese-owned social media platform is not transparent enough about advertisements. – AFP
BRUSSELS: The EU accused TikTok on Thursday of breaking digital rules after concluding that the Chinese-owned social media platform was not transparent enough about advertisements. The European Commission "found that TikTok does not provide the necessary information about the content of the advertisements, the users targeted by the ads, and who paid for the advertisements", it said in a statement.
It is the first time Brussels has formally accused TikTok of breaching the Digital Services Act (DSA), the EU's landmark online content law. "In our preliminary view, TikTok is not complying with the DSA in key areas of its advertisement repository, preventing the full inspection of the risks brought about by its advertising and targeting systems," the EU's digital chief, Henna Virkkunen, said.
TikTok said it was reviewing the commission's findings and remained "committed" to complying with the DSA. "We disagree with some of the commission's interpretations and note that guidance is being delivered via preliminary findings rather than clear, public guidelines," a TikTok spokesperson said. Under the DSA, the world's largest digital companies must establish an advertisement library that shows information about the adverts that run on their platforms. The EU hopes that any ads library is then easily accessible to researchers and civil society to detect scam adverts and hybrid threat campaigns.
TikTok trends
The DSA, which entered into effect last year, is part of the European Union's powerful armoury to rein in big tech, and gives the EU the power to hit companies with fines as high as six percent of their global annual revenues. TikTok is still under investigation in the same probe launched in February 2024 amid fears it may not be doing enough to address negative impacts on young people. A key worry is the so-called "rabbit hole" effect - which occurs when users are fed related content based on an algorithm, in some cases leading to more dangerous content.
The EU launched investigations last year into claims TikTok was used by Russia to sway the result of Romania's presidential election, and over its Lite spinoff app. The company backed down and permanently removed a feature in the Lite app in France and Spain in August after regulators warned it could be very addictive. EU states including Belgium and France also recently raised concerns with the EU over the "SkinnyTok" trend promoting extreme thinness on TikTok.
TikTok has said it does not allow the display or promotion of dangerous behaviors related to eating habits and weight loss. The DSA has more stringent rules for the biggest platforms, and demands tech giants do more to counter the spread of illegal and harmful content as well as disinformation. The EU last year accused X, owned by US tech billionaire Elon Musk, of breaching the DSA over its blue checkmarks for certified accounts. And as part of a wide-ranging probe, the EU is looking into the spread of illegal content and the effectiveness of the platform's efforts to combat disinformation. - AFP
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That said, in April, the first month in the schedule that called for higher OPEC-8 supply, monthly supply gains from the group, at 23 kb/d, fell far short of the 131 kb/d that had been planned. Only four of the eight producers – Saudi, the UAE, Oman and Russia – increased production. Despite lowering output in April, Kazakhstan and Iraq were once again producing well above their respective quotas never mind honoring compensatory cut pledges. Declaration of Cooperation(DOC) production (excluding quota-exempt Iran, Libya, Venezuela and Mexico) fell slightly in April to 30.0 mb/d (-17 kb/d). In the US, crude production hovered near record levels of 13.4 mb/d by mid-May, as per Energy Information Administration (EIA) data. (Chart 6).Following the plunge in oil prices and the downturn in global macroeconomic prospects, the EIA lowered its forecast for US crude oil output growth this year by nearly half to 208kb/d, the slowest rate of expansion since 2021. For 2026, growth is expected to decelerate even further to just 82kb/d as producers pull back on activity amid lower oil prices. According to a Dallas Fed energy survey, the average breakeven price in the shale patch to drill a new oil well is around $65/bbl, several dollars above the current price of West Texas Intermediate. US shale firms have also been grappling with the challenges of rising gas-to-oil and water-to-oil ratios, which are straining infrastructure and raising operational costs. The EIA is projecting US crude oil production to peak in 2027at 14 mb/d, with shale oil production topping out at 10 mb/d before declining through to 2050. The recent decline in oil prices is also weighing on broader non-DoC production, prompting downgrades to the outlook, though at an estimated 1.3 mb/d this year according to the IEA, supply growth is still well outpacing demand growth. This is being driven by higher production in Brazil, Guyana, and Canada as well as in the US. For 2026, however, the IEA sees non-DoC supply growth lagging demand growth, at 820 kb/d. Market balance Weaker oil demand prospects due to trade tariff-linked global macroeconomic headwinds and rising supply both from OPEC+ and non-OPEC+ producers, are weighing heavily on market sentiment and by extension oil prices. The fundamentals are signaling a loosening oil market that will shift from a slight supply deficit last year to a pronounced surplus in 2025. The IEA estimates the 'call' on OPEC+ (the volume of OPEC+ crude needed to balance the market after accounting for demand and non-OPEC supply) to be in the region of 41.2 mb/d on average in 2025. OPEC+ was already pumping significantly above the IEA's estimate for the call in Q1 2025 (+800 kb/d) before the group decided to ramp up output in April. And the increase in OECD commercial crude stocks in March was beginning to reflect that. With OPEC-8seemingly pressing ahead with a more rapid resupply pace, that buffer will quickly erode. Assuming no change to current OPEC-8 policy and no offsetting compensatory cuts, the entirety of 2023-2024's 2.2 mb/d of supply cuts would have been unwound by October 2025 (rather than the original late 2026), pushing the market into firm surplus territory, averaging 1.4 mb/d, according to our calculations. Risks to our standing oil price forecast of $70/bbl (2025 and 2026) are increasingly concentrated to the downside, barring significant supply-side geopolitical disruptions such as tighter Iran sanctions or, on the demand side, an upturn in global economic prospects, perhaps by a rolling back of trade tariffs.