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TikTok And Other Chinese Apps Sued For User Data Breach

The Global Economics by The Global Economics
January 16, 2025
in Trending, Technology, USA
Reading Time: 3 mins read
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TikTok And Other Chinese Apps Sued For User Data Breach

TikTok And Other Chinese Apps Sued For User Data Breach

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Vienna-based advocacy group Noyb has filed a lawsuit against TikTok and other companies for unlawfully sending the user data of EU citizens to China.

The Chinese social media app TikTok has been dealing with allegations of privacy and data breaches for years now. TikTok, Shien, and a few other Chinese companies were yet again named in a privacy complaint by the Vienna-based advocacy group Noyb (None of Your Business). Noyb has filed a lawsuit against these companies for unlawfully sending the user data of EU citizens to China.

While this is the first case Noyb has filed against Chinese firms, they have previously filed suits against American companies such as Alphabet, Apple, and Meta. This has resulted in multiple investigations leading to these companies coughing up billions of dollars in fines.

This Austrian group has filed a total of six complaints in four different European countries, calling for the suspension of user data transfer to China. The fines sought by Noyb are estimated to reach nearly 4% of the global revenue of these firms. According to the advocacy group, Alibaba’s eCommerce company- AliExpress, Shein, and Xiaomi have admitted to sending the personal data of Europeans to China while Temu and WeChat parent company Tencent have been accused of transferring data to undisclosed third countries which is most likely China.

European Union’s General Data Protection Regulation (GDPR) mandates that data transfers outside the EU can only be permitted if the particular country values the privacy of user data. Kleanthi Sardeli, a data protection lawyer at Noyb, described China as an authoritarian and surveillance state, explaining that this means Beijing does not offer the same data protection as the EU, and therefore this transfer of data must cease immediately.

For TikTok in particular, dark days are ahead as the US plans to instate a federal ban from Sunday, January 19th. Users who already have the app downloaded can continue to use the app, but US companies have been barred from providing services of app maintenance, updating, and distribution. According to the law, which was signed in April 2024, if TikTok parent company ByteDance does not divest the site, new downloads on Apple and Google Play Stores will be banned.

According to the Washington Post, recent President-elect Donald Trump who is set to assume office a day after the ban comes into effect is said to be considering the issuance of an executive order which would delay the shutdown from 60 to 90 days. Although, the report offered little clarity regarding the legality behind such an order, should it be issued.

Trump has also said that he requires some time after taking over the White House to pursue a political resolution of this issue. While the Trump team did not directly comment on the matter, the national security adviser chosen by Trump, Mike Waltz said in an interview with Fox News that “TikTok is a fantastic app” and that they would find a way to keep it operational in the US while ensuring user data is protected. TikTok lawyer Noel Francisco also argues in the Supreme Court that they would ‘go dark’ in the event of a shutdown.

In December 2024, the European Commission initiated formal proceedings against the Chinese company over suspicions of TikTok’s involvement in the Romanian Presidential elections. The Commission has said that it will look into the social media app’s policies regarding political and paid-in content. It also seeks to look into the app’s system for generating recommendations of content that could potentially manipulate voter mindset.

TikTok has provided the Commission with the necessary information and has also maintained it did not accept paid political advertisements and even actively removed content which violated the app’s policies concerning misinformation and hate speech.

While the Chinese company has consistently denied allegations of privacy breaches, various governments, and international organisations are calling for the app to provide more transparency on the usage of personal data. While these Chinese apps are facing serious charges, the users, on the other hand, have expressed disappointment with the potential ban.

Tags: chinaEUeuropetitokus
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The Global Economics Limited is a UK based financial publication and a bi-annual business magazine giving thoughful insights into the financial sectors on various industries across the world. Our highlight is the prestigious country specific Annual Global Economics awards program where the best performers in various financial sectors are identified worldwide and honoured.

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