TikTok, Shein, Xiaomi, and other Chinese companies face privacy complaints in the EU over illegal data transfers to China, with potential fines looming.

A New Privacy Battle: Chinese Tech Firms Under Scrutiny in the EU


In a significant development, TikTok, Shein, Xiaomi, and several other Chinese companies are facing privacy complaints filed by the Austrian advocacy group Noyb. The group alleges that these firms have illegally transferred European Union user data to China, violating the region's stringent data protection laws. This marks a new chapter in Noyb’s relentless campaign to hold tech companies accountable for their handling of personal data.

Noyb Files Privacy Complaints Against Chinese Giants


On Thursday, Vienna-based privacy advocacy group Noyb (None Of Your Business) lodged formal complaints against a range of high-profile Chinese companies. Among the accused are Alibaba's e-commerce platform AliExpress, retail giant Shein, social media giant TikTok, and smartphone maker Xiaomi. Additionally, Temu and Tencent's WeChat are also implicated in transferring European data to undisclosed "third countries," with suspicions pointing to China.

This is Noyb's first complaint targeting Chinese companies, following a history of similar legal actions against major American firms like Apple, Meta, and Alphabet. The group's efforts have already resulted in several high-profile investigations and billions of dollars in fines, and it is now aiming to replicate this success with Chinese corporations.

The GDPR at the Heart of the Issue


At the core of the privacy complaints is the European Union's General Data Protection Regulation (GDPR), which governs the handling and transfer of personal data. Under the GDPR, it is only permissible to send data outside the EU if the destination country offers an equivalent level of data protection.

Noyb argues that China, as an authoritarian surveillance state, does not meet the stringent data protection standards set by the EU. “The transfer of Europeans’ personal data is clearly illegal – and must stop immediately,” stated Kleanthi Sardeli, a data protection lawyer at Noyb.

A Growing Concern for Chinese Tech Companies


This move comes at a time when Chinese tech firms are already under intense scrutiny worldwide. TikTok, in particular, has been facing mounting pressure from regulators in multiple countries over concerns related to data privacy and security. The platform, owned by Chinese company ByteDance, is preparing for a federal ban in the United States starting Sunday, as a result of concerns that the app may compromise U.S. national security by sharing data with the Chinese government.

In addition to the U.S. ban, the European Commission is investigating TikTok for its role in potential election interference, particularly focusing on the Romanian presidential election held in November. The ongoing scrutiny reflects the growing global concern about the influence of Chinese tech firms on user privacy and data protection standards.

Noyb's Legal Actions and Potential Consequences


Noyb's complaint is more than just a call for accountability; it also demands that data transfers to China be suspended immediately. The organization is seeking fines that could reach up to 4% of a company's global revenue—a figure that could result in substantial financial consequences for the accused companies.

In addition to the immediate suspension of data transfers, Noyb’s legal actions also highlight the broader issue of global data privacy. As more Chinese companies expand their reach in Europe, regulators will likely continue to face the challenge of ensuring compliance with the GDPR and protecting citizens’ privacy rights.

 Privacy on the Line as Legal Action Intensifies


The ongoing privacy complaints against TikTok, Shein, Xiaomi, and other Chinese companies represent a pivotal moment in the ongoing battle over user data protection. With the European Union’s robust GDPR in place, Noyb is pushing for stronger enforcement of data privacy laws, holding companies accountable for violating those standards. As these legal battles unfold, the outcome will not only impact Chinese firms but could also set a precedent for how global tech giants handle user data in the future.

The case serves as a reminder that, in an increasingly interconnected world, privacy remains a fundamental issue that must be safeguarded against potential misuse by both foreign and domestic entities. The eyes of the world are now on the EU's response to this complex and evolving privacy challenge.