TikTok hit with $560M EU fine over data transfer breaches
TikTok has been fined 560 million US dollars by the Irish regulator for non-compliance with EU data protection rules, reports the Associated Press. It is alleged that user data was being transferred to China, TikTok's country of origin, without adequate safeguards. TikTok plans to appeal the decision.
The Irish Data Protection Commission imposed a fine of 560 million dollars on TikTok for breaching EU data protection laws. The investigation spanned over four years and concluded that the app was transferring user data to China without ensuring sufficient protection. TikTok, whose European headquarters is located in Dublin, has six months to comply with the regulations.
TikTok fined in the EU: A significant penalty
TikTok disputes the decision and plans to appeal. The company highlights that the decision relates to a time frame that ended in May 2023, prior to the implementation of the Project Clover data localization initiative. This project includes the construction of three data centres in Europe, designed to enhance data protection standards.
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 that they had not received such a request.
Chinese service set 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 European representative.
The Irish regulator mentioned that TikTok failed to conduct necessary assessments regarding data transfers, despite using the same legal frameworks as other European companies. The investigation also revealed that TikTok’s privacy policy did not adequately inform users about the countries where their data was being sent. TikTok acknowledged that some data had been stored on Chinese servers, which came to light 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.
According to the announcement, the service has 175 million users across Europe and over 6,000 employees in the region. TikTok estimates that the platform contributes approximately 6.9 billion Canadian dollars to the GDP of European countries.
