TikTok reported a 38% surge in European revenue last year, reaching $6.3 billion, according to Forbes. The figure reflects steady growth, although it slowed from a 75% rise the previous year. At the same time, TikTok narrowed its pre-tax losses to $616 million in 2024, down from $1.47 billion in 2023, signaling a gradual shift toward profitability.

The numbers show that TikTok remains an important channel across Europe, particularly in markets where its reach and engagement continue to expand. The platform recorded 159 million monthly active users across the European Union by the end of 2024, an 11.5% increase from the previous year.

E-commerce expansion and advertising demand

TikTok’s expansion into commerce has been central to its European growth. The company launched TikTok Shop in Germany, France, and Italy, building on earlier pilots in Spain and Ireland. This rollout positions TikTok to tap into some of Europe’s largest e-commerce markets by merging content, community, and commerce in a single app.

The integrated model allows advertisers and brands to meet customers directly at the point of discovery. A user watching short-form content can now purchase products without leaving the app. Forbes noted that strong advertising demand and user engagement remain core drivers of TikTok’s European success.

Regulatory scrutiny intensifies

Despite its growth, TikTok is under rising pressure from European regulators. In June, The New York Times reported that European officials banned the #SkinnyTok trend, citing concerns that it promoted eating disorders. The European Commission also launched proceedings into TikTok’s role in the 2024 Romanian presidential election.

Other probes are underway. In March, Reuters reported that UK regulators are investigating how the company handles children’s data, while Spanish authorities are reviewing whether TikTok engaged in illegal ad targeting. Ireland’s  Data Protection Authority (DPA) has also fined the company more than half of the $1 billion TikTok had set aside for regulatory penalties and has now opened a second investigation into whether ByteDance enabled improper access to European user data.

TikTok’s compliance efforts in Europe

To address concerns, ByteDance has invested in data centers and compliance teams under an initiative called “Project Clover,” which it launched last year. The company opened a data center in Norway and announced plans for another in Finland, which it claims will reduce Chinese access to European user data. 

According to WSJ, while these steps may ease pressure, TikTok still faces possible fines of up to 6% of its annual revenue under the European Digital Services Act if it fails to meet transparency requirements, such as publicly reporting information about advertisers.

The U.S. factor and European risks

Outside Europe, TikTok faces an even larger threat in the United States. Legislation requires ByteDance to divest its American operations or face a nationwide ban, which could cut off access to over 170 million U.S. users. This debate, driven by national security concerns over potential Chinese government access to data, has also influenced sentiment in Europe. The European Council on Foreign Relations warned in June that TikTok could pose disinformation risks to regional security.

If U.S. actions trigger similar responses in Europe, TikTok’s trajectory could be disrupted. Still, despite political and regulatory challenges, TikTok is expanding its presence in Europe.

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