TikTok Faces a Significant €345 Million Penalty for Breaching Children’s Data Privacy Laws.
In Brief
The EU’s regulatory authority has imposed a fine of €345 million ($370 million) on TikTok for infringing upon laws safeguarding children's privacy.
In a groundbreaking decision, Ireland’s Data Protection Commissioner (DPC) , the leading regulator for multiple prominent tech companies operating in the European Union, has issued a €345 million penalty to TikTok .
The DPC took action against TikTok for failing to comply with EU privacy standards, particularly those centered on protecting minors' data.
As per the DPC’s announcement, the ByteDance social media platform was found to have breached several EU privacy laws between July 31, 2020, and December 31, 2020, notably concerning its treatment of accounts belonging to users below 16, which by default were public.
Moreover, the feature meant to enable parental control, known as 'family pairing,' did not sufficiently verify if an adult associated with a child's profile was indeed their legitimate parent or guardian.
Understanding the Regulatory Landscape: GDPR and Associated Penalties
Under the The General Data Protection Regulation (GDPR), enacted in 2018, empowers regulators to levy fines that can reach up to 4% of a company's worldwide earnings. The DPC has a reputation for imposing significant penalties on tech giants. Previously, it collected a staggering €2.5 billion from the entity previously recognized as Facebook. Meta Platforms Inc In an official statement, TikTok expressed disagreement with the DPC's ruling, challenging the size of the fine. A spokesperson for the company noted that many problems had been addressed prior to the start of the DPC’s inquiry in September 2021.
TikTok claimed it revised its privacy features for family pairing in November 2020, subsequently changing the default settings for users under 16 to 'private' in January 2021. The platform also plans to introduce further modifications to clearly delineate between public and private profiles, automatically setting new accounts for users aged between 16 and 17 to private.
Current Investigation and Compliance Timeline
The DPC has allocated TikTok a period of three months to correct all identified breaches. Simultaneously, another probe is underway, focusing on TikTok’s data transfer practices to China and whether they align with EU data protection regulations. In March, the DPC stated it was preparing an initial draft decision on this related matter.
As TikTok faces its initial significant regulatory blowback in Europe, this case serves as a cautionary tale for other tech firms managing user data, particularly that of underage individuals. The ramifications of these penalties and investigations extend beyond mere financial impacts, presenting serious reputational challenges as well.
It will be interesting to watch how TikTok and similar social media enterprises adjust their data protection strategies in light of this increased scrutiny.
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In line with the Trust Project guidelines Nik is a skilled analyst and writer at Metaverse Post, focusing on providing insightful analysis of the rapidly evolving technology landscape, particularly in AI/ML, XR, VR, on-chain analytics, and blockchain technology. His writings engage and inform a broad audience, helping them remain at the forefront of technological advancements. Holding a Master’s degree in Economics and Management, Nik possesses a deep understanding of the intricacies of the business world and its convergence with emerging technologies.
