TikTok Algorithm: EU Sees DSA Violation Due to the Rabbit-Hole Effect

The European Union has accused TikTok of violating the Digital Services Act (DSA) due to its algorithm's 'rabbit-hole effect', which refers to the platform's ability to keep users engaged by continuously serving them content that is likely to interest them. This effect is achieved through the use of AI-powered recommendations that create a personalized feed for each user.

The EU's concerns about TikTok's algorithm are significant for social commerce because they highlight the potential risks of relying on AI-driven recommendations to drive user engagement. If TikTok is forced to modify its algorithm to comply with the DSA, it could have a major impact on the platform's ability to facilitate social commerce and influencer marketing, which are key components of its business model.