The Irish Data Protection Commission (DPC) is reportedly preparing to impose a significant fine on TikTok’s parent company, Bytedance, for transferring user data to China. According to a report by Bloomberg, the fine is expected to be at least 500 million euros.
Data Transfer to China
The fine is related to the illegal transfer of personal data from the European Union to China. Currently, there is no general legal framework that permits the transfer of personal data from the EU to China, unlike the agreement between the EU and the United States under the Transatlantic Data Protection Framework (TADPF). China’s national security laws allow the government considerable access to data held by private companies, making it unlikely that such data transfers will be allowed in the near future.
The decision is expected to be finalized in the coming weeks after a year-long investigation. In February, the DPC shared a draft of its decision with other supervisory authorities within the European Data Protection Board. The DPC oversees Bytedance’s operations in Europe, as the company’s European headquarters is located in Ireland.
Financial Provisions for Penalties
In anticipation of potential penalties, Bytedance had set aside provisions of one billion US dollars last year, according to Forbes. The company had already faced a substantial fine in 2023 from the DPC, amounting to 345 million euros. This earlier fine was related to issues regarding the protection of minors’ data during the second half of 2020.
The upcoming fine is part of ongoing scrutiny over TikTok’s data protection practices under the European Union’s General Data Protection Regulation (GDPR).
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