Global tech clampdown expands, now focusing on TikTok by EU authorities
Blockbuster Fine for TikTok
TikTok, the popular social media platform, has been slapped with a whopping €530m fine by Ireland's data protection watchdog for illegally transferring user data to China and failing to inform users about it.
This hefty penalty, the third largest under the EU's General Data Protection Regulation (GDPR), intensifies the EU's scrutiny of tech firms and their data flows to countries with intrusive surveillance regimes. It's also the first time an EU regulator has directly taken action over data transfers to China.
The Ireland's Data Protection Commission found TikTok's lack of assessment on how Chinese laws could allow state access to European user data and lack of guarantees that data accessed from China met EU privacy standards as unacceptable. Previously, TikTok claimed it didn't store European data in China, but in early 2023, it admitted that "limited" EU user data was found on Chinese servers, which it later deleted.
Christine Grahn, TikTok’s head of public policy and government relations for Europe, expressed her disappointment with the decision, stating that the company has already implemented extensive safeguards and that regulators failed to substantively consider these. In addition to data transfer breaches, TikTok was also fined €45m for lack of transparency between 2020 and 2022, as its privacy policies failed to clearly state that personal data could be accessed from China.
Regulators argued that TikTok's measures came too late to offset the violations. TikTok maintains that it is being unfairly targeted and warns that the decision sets a precedent that could disrupt thousands of international businesses. The ruling adds to TikTok'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 Never-Ending TikTok Ban Saga
This fine follows the ongoing stalemate surrounding the app, which had Washington in a twist until late last year. An initial ban over national security concerns was introduced, then reversed, and currently, the app is navigating uncharted waters after several delays.
Last month, it seemed like the stalemate was finally ending - with a deal finally being reached at the White House. However, just days later, Trump's latest tariff salvo threw the whole deal into disarray. Trump's latest executive order has given the app another 75 days to reach a deal and ideally avoid a US ban.
- The fine of €530m imposed on TikTok underscores the EU's increasing scrutiny of technology firms concerning data flows to countries with intrusive surveillance regimes, such as China.
- The Ireland's Data Protection Commission found that TikTok had failed to adequately safeguard user data, storing limited EU data on Chinese servers, despite earlier claims to the contrary.
- In response to the €45m fine for lack of transparency, TikTok's head of public policy stated that the company had already implemented extensive safeguards, but regulators failed to substantively consider these.
- Despite being fined for data transfer breaches and lack of transparency, TikTok continues to face regulatory challenges, including investigations under the Digital Services Act and previous fines for mishandling children's data, in the EU.
