The EU has a 500 million euro fine ready for TikTok due to privacy rule violations. X is facing a fine twice as high for disregarding the DSA.
The European Union is imposing a 500 million euro fine on TikTok. The fine is being issued by the Irish Data Protection Commission (DPC). Bloomberg reports this based on anonymous sources. The DPC has determined that ByteDance, the company behind TikTok, illegally transferred user data to China. The official notification of the fine is expected to follow before the end of the month.
By transferring personal data to China, ByteDance has violated GDPR provisions. This is the conclusion after an extensive investigation. The Irish authority has jurisdiction because ByteDance has its European headquarters in the country. Only twice before have the Irish imposed heavier fines: 1.2 billion dollars for Meta, and 746 million euros for Amazon. TikTok has not yet responded and can still appeal.
Rules and sanctions are an important part of the power that European authorities can exert over foreign companies. The EU comprises a market of about 450 million consumers, and those who want access to that market must follow the rules. The fine for TikTok is a new indication that the EU wants to continue this line.
X Follows
This is immediately important for X, which is also being investigated by the Union. The investigation has been ongoing since 2023. X allegedly does not comply with the rules of the Digital Services Act, including disregarding moderation requirements. The DSA expects Twitter to take measures to counter the spread of malicious content and disinformation. As a spreader of malicious content and disinformation, this is not in line with the vision of big boss Elon Musk, who previously indicated he would prefer a lawsuit.
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EU Plans 500 Million Euro Fine for TikTok, Considers Double for X
The New York Times now knows that X can also expect a substantial fine. It could even be higher than one billion dollars. The EU wants to make an example of X but leaves room for compromise should the company still want to comply with the rules.
A high fine for X threatens to further inflame tempers. Musk, as an informal first buddy, has the ear of US President Trump, who without blinking started a trade war with the entire world earlier this week. Trump plays Calimero under false pretenses and claims that the EU would treat the US poorly. A fine for X would likely be framed within that narrative.
Consistent Enforcement
This makes the Irish monster fine for TikTok extra relevant. It shows that the EU demands everyone to comply with the rules, both American companies like X and Chinese organizations like TikTok. In practice, it is doubtful whether clear rules and logical arguments will have much impact on European-American discussions about X.
All parties involved will still be able to appeal, so the last word has not yet been said.