The European Commission has charged TikTok with breaching the EU’s Digital Services Act by failing to provide sufficient transparency in its advertising practices. Regulators say the platform lacks a proper ad repository and does not disclose key details such as content, targeting, and sponsors, according to Reuters.

The violations could lead to a fine of up to 6 percent of parent company ByteDance’s global revenue.

TikTok disagreed with the findings, saying it supports the regulation’s goals but criticized the lack of clear public guidance.

The company can respond before the Commission issues a final decision, Reuters reported.