TikTok slapped with $560M EU fine over data protection breach
TikTok has received a fine of $560 million from the Irish regulator for not complying with EU data protection regulations.. Allegations suggest that user data was sent to China, the app's country of origin, without appropriate safeguards. TikTok plans to appeal the decision.
The Irish Data Protection Commission imposed a fine of $560 million on TikTok for violating EU data protection regulations. The investigation into these issues lasted over four years. It concluded that the app was transferring user data to China without ensuring an adequate level of protection. TikTok, whose European headquarters is based in Dublin, has six months to comply with the regulations.
TikTok fined in the EU: Huge penalty
TikTok disagrees with the decision and intends to appeal. The company emphasizes that the ruling pertains to a period that ended in May 2023, before the launch of the data localization project known as Project Clover. This initiative includes the construction of three data centers in Europe, which aim to adhere to the highest standards of data protection.
Christine Grahn, TikTok's Director of Public Policy and Government Relations in Europe, stated in the company's statement that the service did not transfer user data to China and had not received such a request.
Chinese service to appeal the decision
This ruling risks setting a precedent with far-reaching consequences for companies and entire industries across Europe that operate on a global scale. It delivers a blow to the European Union’s competitiveness. We disagree with the decision and plan to appeal in full, states TikTok's representative for Europe.
The Irish regulator mentioned that TikTok did not conduct the necessary assessments regarding data transfers, even though the company uses the same legal mechanisms as other European companies. The investigation also found that TikTok's privacy policy did not inform users about the countries to which their data was being sent. TikTok admitted that some data was stored on Chinese servers, a fact discovered only in February.
"We are disappointed to have been singled out despite relying on the same legal mechanism employed by thousands of other companies providing services in Europe. (...) This ruling risks setting a precedent with far-reaching consequences for companies and entire industries across Europe that operate on a global scale," states the TikTok representative.
The service, as stated in the announcement, has 175 million users across Europe and over 6,000 employees in the region. It estimates that the platform contributes $5.1 billion to the GDP of European countries.
