TikTok Faces $600M Fine Over Illegal Data Transfers to China

TikTok is facing a massive $600 million fine from European regulators over how it handled users' personal data — especially information accessed from China. The penalty, one of the largest ever under the EU's General Data Protection Regulation (GDPR), highlights growing concern about how global tech companies are handling sensitive data across borders.

The ruling, led by Ireland’s Data Protection Commission (DPC), found that TikTok failed to protect European users' data when it was accessed by employees in China. Regulators said the platform didn’t meet EU-level standards and didn’t fully inform users that their data might be available to teams based in China — a key violation of GDPR transparency rules.

Most of the fine — around $550 million — relates directly to these unlawful data transfers, with an additional $50 million tacked on for failing to clearly communicate where the data was going and who could access it.

TikTok responded quickly, saying it disagrees with the findings and will appeal. The company stressed that it has taken steps to strengthen data protections, pointing to “Project Clover,” an initiative aimed at improving how European user data is stored and accessed. Christine Grahn, TikTok’s Head of Public Policy in Europe, added that TikTok has never handed over user data to Chinese authorities and maintains that it follows strict legal procedures.

Still, regulators are pushing back. They said TikTok didn’t do enough to account for Chinese surveillance laws — like those covering anti-terrorism and counter-espionage — when evaluating the risk of data access from China. That lack of due diligence, they argue, puts users’ privacy at risk.

The fine comes with a warning: if TikTok doesn’t fix these issues within six months, the company could face restrictions on future data transfers to China, which could have a major impact on its European operations.

This isn’t TikTok’s first run-in with regulators. In 2023, it was fined $368 million for mishandling children’s data. That same year, Meta was fined a record $1.3 billion for similar data privacy violations related to Facebook.

The EU is clearly sending a message: companies doing business with European users need to respect the rules, or face consequences. For TikTok, this could mean not just financial penalties, but a real test of its global strategy at a time when trust, transparency, and data safety are more important than ever.

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