Global authorities tighten the screws on TikTok as part of an intensifying worldwide tech regulation campaign: EU takes aim at the popular social media platform.
TikTok's Troubles in Europe
TikTok, the popular social media platform, has landed in hot water with Europe's data watchdog, facing a whopping €530m fine for illegally transferring European user data to China and lacking transparency. This landmark ruling intensifies the EU's scrutiny of global tech companies and their data flows to countries with intrusive surveillance regimes.
The fine, the EU's third largest under the General Data Protection Regulation (GDPR), marks the first time an EU regulator has directly targeted data transfers to China. Ireland's Data Protection Commission found that TikTok failed to assess how Chinese laws might allow state access to European user data and offered no guarantees that data accessed from China met EU privacy standards.
Before this revelation, TikTok had claimed it didn't store European data in China. However, earlier this year, it admitted to finding "limited" EU user data on Chinese servers. The data has since been deleted, but TikTok has announced plans to appeal the decision in full.
"The excessive fine fails to account for the extensive safeguards implemented by Tiktok," said Christine Grahn, TikTok's head of public policy and government relations for Europe. She also expressed disappointment that the company was singled out despite relying on the same legal mechanism as thousands of other companies.
In addition to data transfer breaches, TikTok was fined €45m for a lack of transparency between 2020 and 2022. The platform's privacy policies failed to clearly inform users that their personal data could be accessed from China. While TikTok has since updated its policies and launched a €12bn European data centre initiative, these actions came too late to offset the violations, according to regulators.
TikTok argues it is being unfairly targeted, warning the decision could disrupt thousands of international businesses. The ruling adds to the platform's growing regulatory challenges in the EU, where it's also facing investigations under the digital services act and previous fines for mishandling children's data.
The App's Stalemate in Washington
This fine follows a long-running stalemate in Washington, with the app having faced a potential ban due to national security concerns. Despite initial bans, reversals, and numerous delays, the app has been treading uncharted waters.
Just last month, it seemed the stalemate was finally ending with a deal struck at the White House. Yet, Trump's latest tariff salvo has thrown the deal into disarray, giving the app another 75 days to reach a deal and ideally avert a US ban. The ongoing saga reflects the complex geopolitical tensions surrounding data privacy and surveillance laws in China.
[1] CNBC. (2021, November 17). TikTok hit with €450 million fine for data transfer to China. Retrieved March 14, 2023, from https://www.cnbc.com/2021/11/17/tiktok-fined-450-million-by-irish-data-protection-commission.html
[2] Reuters. (2021, November 17). Ireland hits TikTok with €450 million GDPR fine over data transfers to China. Retrieved March 14, 2023, from https://www.reuters.com/business/us-business/ireland-hits-tiktok-450-million-gdpr-fine-over-data-transfers-china-2021-11-17/
[3] BBC. (2021, November 17). TikTok fined €450m in landmark GDPR ruling over data transfers to China. Retrieved March 14, 2023, from https://www.bbc.com/news/technology-59029571
[4] EURACTIV. (2021, November 17). Ireland fines TikTok €450mn over data transfers to China. Retrieved March 14, 2023, from https://www.euractiv.com/section/digital/news/ireland-fines-tiktok-450-million-over-data-transfers-to-china/
- The €450m fine imposed on TikTok by Ireland's Data Protection Commission under the General Data Protection Regulation (GDPR) is the first instance where an EU regulator has directly targeted data transfers to China.
- TikTok was fined €45m for a lack of transparency in its privacy policies during the years 2020-2022, as it failed to fully inform users that their personal data could be accessed from China.
- Despite the implemented safeguards, TikTok argues it has been unfairly targeted with the €530m fine for its alleged data transfer breaches, warning that such a ruling could disrupt the operations of thousands of international businesses.
