And there’s TikTok, the viral video unifier that’s suddenly public enemy number one. People are becoming increasingly worried about the way it uses and stores their data. The app is already under threat of a total United States ban. Western officials are very worried about security risks associated with its data practices, and it needs to find a buyer outside of China to prevent this scenario from happening.
In recent months, TikTok has been pressured to address how it stores and manages personal user information, particularly in Europe. The company has been hit hard over the past couple of years by the General Data Protection Regulation (GDPR). This regulation states that European user data can only be transferred outside the European Union if there are adequate safeguards established to provide equivalent protection levels. Significantly, China is not listed as one of the 15 countries or territories deemed to provide a level of data privacy protection that is comparable.
Data Storage Concerns
Most recently, reports have emerged that TikTok has been storing some data on servers in China. Specifically, this concerns regulators who worry that user data may be available to the Chinese government.
The Data Protection Commission (DPC) noted that “limited EEA user data had in fact been stored on servers in China.” These latest discoveries have increased pressure for TikTok to confirm that its data processing practices are compliant with European standards. The DPC’s statement reflects the increasing scrutiny that TikTok is under. The company is obviously doing its best to chart the unpredictable waters of the international email privacy law gauntlet.
Potential Ban and Acquisition Efforts
Back in the United States, TikTok’s future remains uncertain as it fights to find a buyer outside of China. At the end of June, former President Donald Trump gave us some thrilling news. He disclosed that a short list of buyers had been found for TikTok. He said he was confident he could name these buyers in just a few weeks.
The potential TikTok ban adds new urgency to the imperative for TikTok to take decisive action. To remain available, the platform will need to distance itself from foreign ownership. If it doesn’t, it stands to lose access to a key market in the U.S., putting its growth and long-term viability at risk.
European Regulatory Challenges
TikTok’s political future in the U.S. is pretty bleak. Across the Atlantic, European regulators are currently investigating the platform for violating GDPR. The regulation’s intent is to safeguard the personal data and privacy of people who live in the European Economic Area (EEA).
As TikTok, or any other app that wishes to operate in multiple jurisdictions, goes forward, it will have to be keenly aware of U.S. and European regulatory realities. Both regulators and users have turned up the heat on TikTok’s leadership. Further, they need to quickly establish themselves as leaders on global data privacy, setting the standard for what’s expected around the world.
