On July 24, the European Union announced preliminary findings accusing TikTok of breaching privacy protections for minors. This fresh allegation could lead to a hefty fine under the EU's Digital Services Act, a broad set of rules regulating digital platforms.
TikTok’s troubles in Europe are mounting. Back in September 2023, Ireland’s Data Protection Commissioner fined TikTok €345 million for GDPR violations involving children’s data. The investigation revealed that accounts for users under 13 were active and that TikTok failed to protect their personal details adequately during the latter half of 2020.
Separately, TikTok was hit with a €530 million fine concerning data transfers to China, confirmed by the Irish High Court earlier this year. Combined, these penalties have already cost the platform more than €875 million in Europe, even before this new case is resolved.
The Digital Services Act, introduced recently, expands the EU’s regulatory reach, targeting issues like content moderation, algorithm transparency, and especially safeguards for minors. Under its provisions, fines can reach up to 6% of a company’s global revenue, raising the stakes significantly.
TikTok has been given a chance to respond to the EU’s claims, following standard legal procedure. No fine amount has been set yet.
These ongoing investigations stem from the 2020 violations uncovered by Irish regulators, when minors under 13 were found using TikTok. European authorities continue scrutinizing the platform’s compliance closely.
Since ByteDance, TikTok’s parent company, is privately held, there’s no public stock affected directly. However, publicly traded social media firms like Meta and Snap should take note, as regulatory costs and penalties across Europe are clearly increasing.
How TikTok reacts to these findings will be critical. The outcome could not only determine the size of the fine but also whether TikTok faces tighter operational restrictions within one of the world’s most significant digital markets.
