The fine follows concerns that TikTok’s data transfers to China breached strict European Union (EU) privacy laws.

European Union privacy regulators imposed a fine of €530 million ($600 million) on TikTok on Friday, following a four-year investigation that revealed the app's data transfers to China violated the EU's stringent data privacy regulations.

Ireland’s Data Protection Commission (DPC) fined TikTok after a four-year investigation revealed the company failed to protect European users' data from potential access by Chinese authorities.

The fine follows concerns that TikTok’s data transfers to China breached strict European Union (EU) privacy laws.

The Irish national watchdog acts as TikTok's primary data privacy regulator in the 27-member EU, as the company's European headquarters is located in Dublin.

The DPC's investigation found that TikTok did not guarantee that user data sent to China would be protected from government access under Chinese laws related to espionage, cybersecurity, and national intelligence, according to Wall Street Journal.

Deputy Commissioner Graham Doyle stated, “TikTok failed to verify, guarantee and demonstrate that the personal data of (European) users, remotely accessed by staff in China, was afforded a level of protection essentially equivalent to that guaranteed within the EU.”

As part of the ruling, the DPC ordered TikTok to stop transferring user data to China within six months unless the company can demonstrate that the data will be protected to the same standards as within the EU.

The investigation also revealed that TikTok had stored some European user data in China, despite previous denials. TikTok later confirmed it had deleted this data.

TikTok plans to appeal the fine, stating it disagrees with the decision and contests the allegation that it hasn’t provided adequate protection for European data.

The company argued that the ruling pertains to a period before it implemented its “Project Clover,” which involves hosting European user data on servers in Ireland and Norway.

TikTok also reiterated that it has never provided European user data to the Chinese government. Christine Grahn, TikTok's European head of public policy, defended the company, claiming that “Project Clover has some of the most stringent data protections anywhere in the industry.”

The issue of Chinese access to data has raised concerns in both Europe and the United States, with national security issues leading to calls for TikTok to be sold or banned. In Europe, several countries have already banned the app from government devices.

The DPC’s investigation also found that TikTok’s privacy policy did not clearly explain where user data was being stored or processed, particularly by Chinese personnel.

The Irish watchdog has stated that it is considering further regulatory actions following TikTok’s admission that some European user data had been stored on Chinese servers. The DPC also noted that TikTok had provided inaccurate information throughout the inquiry, particularly regarding the storage of European data in China.

Doyle concluded that the watchdog takes these developments seriously and will decide on further steps as the situation unfolds.

This fine adds to the growing scrutiny TikTok faces in the West, as the company continues to address concerns over data privacy and its ties to China.