TikTok’s Massive GDPR Fine

Dan Nicholson

The European Union has imposed a hefty penalty on TikTok for its violation of the General Data Protection Regulation (GDPR). The implications of this case serve as a reminder about the importance of safeguarding user data.

The Breaches

The Domestic Policy Council’s (DPC) investigation revealed TikTok's violation of eight distinct articles of the GDPR. These breaches touch upon multiple areas:

  1. Lawfulness.
  2. Fairness and transparency of data processing.
  3. Data minimization.
  4. Data security.
  5. Responsibility of the controller.
  6. Data protection by design and default.
  7. Clear communication about data processing to minors.
  8. Disclosure of recipients of personal data.

The core issue centered around default account settings that enabled public visibility of content posted by users, notably those under 13. This lack of protection posed a significant threat as any TikTok user, irrespective of being logged in or not, could access the content. Moreover, features like “Duet” and “Stitch” were activated by default. 

Additionally, the "Family Pairing" feature allowed child users' accounts to be linked with unverified adult users. Once linked, settings on the child's account could be relaxed by the paired account, further compromising the child's data privacy.

TikTok’s Defense

TikTok responded to the fine and criticisms with disagreement, especially concerning the fine's magnitude. The company emphasized that the criticized features and settings had been updated long before the DPC’s investigation commenced. Elaine Fox, TikTok's head of privacy in Europe, emphasized the company’s proactive approach. 

In 2021, TikTok became the pioneer in openly disclosing the number of suspected underage accounts it removed. Moreover, accounts of users aged 13-15 had been set to private by default, reflecting their commitment to safeguarding young users.

Contextualizing the Penalty

This isn't the first time tech giants are facing substantial GDPR fines. Earlier this year, the U.K.’s privacy regulator penalized TikTok roughly $15.7 million for similar data protection failures. Even larger fines have been imposed on other platforms; Instagram, owned by Meta, faced a massive €405 million fine in the EU due to children's data protection violations.

Nevertheless, TikTok's violation and the subsequent fine further fuel the ongoing discourse about child protection and data privacy in the digital age. Even as companies face massive penalties, it's crucial to understand whether these sanctions genuinely drive change in the industry.

Final Thoughts

As tech platforms continuously evolve, they must ensure that they prioritize user safety, especially when children are involved. TikTok’s substantial penalty underlines the critical importance of GDPR compliance for global tech companies. However, the key takeaway isn't just the financial ramifications; it's a reminder that companies have a moral and legal obligation to safeguard their users, particularly the vulnerable ones.


The Verge

Tech Crunch

Dan Nicholson is the author of “Rigging the Game: How to Achieve Financial Certainty, Navigate Risk and Make Money on Your Own Terms,” deemed a best-seller by USA Today and The Wall Street Journal. In addition to founding the award-winning accounting and financial consulting firm Nth Degree CPAs, Dan has created and run multiple small businesses, including Certainty U and the Certified Certainty Advisor program.

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