The Chinese-owned short-video platform has incurred a fine for its handling of children's data in Europe during the period between July 31, 2020, and December 31, 2020.

The European Union's primary regulatory authority for data protection, the Data Protection Commissioner of Ireland (DPC), recently imposed a fine of €345 million on the tech giant TikTok for violations of privacy laws. The DPC attributed this penalty to TikTok's mishandling of children's data, as indicated in their official statement.

During the timeframe from July 31, 2020, to December 31, 2020, TikTok allegedly failed to adequately verify whether users connecting through the "family pairing" feature were indeed the parents or legal guardians of child users. Moreover, accounts belonging to users under the age of 16 were defaulted to "public" settings.

Although TikTok introduced more stringent parental controls for family pairing in November 2020 and adjusted the default setting for users under 16 to "private" in January 2021, a separate investigation into TikTok regarding the transfer of personal data to China and its compliance with EU data regulations remains ongoing.

This development comes just half a year after CEO Shou Zi Chew testified before the United States Congress, as TikTok faced heightened scrutiny and calls for a potential U.S. ban over allegations that Chinese engineers had access to U.S. user data.

In the midst of mounting international regulatory scrutiny, TikTok has introduced the TikTok Shop in the United States. This expansion into the realm of financial technology (fintech) aims to enable users not only to discover but also to shop for products. The integration incorporates shoppable videos and live streams directly into users' For You feeds, providing a platform for brands and creators to engage with highly interested customers.