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Irish Data Regulator Launches New Inquiry into TikTok Over Data Storage in China

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Ireland’s Data Protection Commission (DPC) has opened a fresh inquiry into TikTok concerning the storage of European users’ data on servers in China. This follows TikTok’s April disclosure that some data had been temporarily stored on Chinese servers, an issue not addressed in the regulator’s earlier investigation.

TikTok, owned by China’s ByteDance, was fined €530 million ($620 million) in May by the Irish regulator over concerns about its handling of European user data, some of which was reportedly accessed remotely by employees in China.

As TikTok’s lead regulator in the EU—since the company’s European headquarters is based in Ireland—the DPC will now specifically focus on the China data storage issue. Previously, TikTok had repeatedly assured the regulator over a four-year probe that it did not store EU data in China. However, in April, the company revealed it had found that a small amount of data was stored in China for about two months before being deleted.

A TikTok spokesperson said the company identified the issue internally, promptly deleted the limited data involved, and informed the DPC. The spokesperson added, “Our proactive report to the DPC underscores our commitment to transparency and data security.”

TikTok is currently appealing the May fine, warning that the ruling could set a broad precedent affecting companies and industries operating globally across Europe.

TikTok building U.S.-only app with separate algorithm and data systems

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TikTok is developing a standalone U.S. version of its platform, complete with a distinct algorithm and data system, to comply with U.S. legislation that mandates the divestment of its American operations. The project, internally known as “M2,” aims to meet a September deadline and could clear the path for a potential sale of TikTok’s U.S. business, Reuters reports, citing employees with direct knowledge.

The move involves duplicating TikTok’s codebase — including AI models, algorithms, features, and U.S. user data — from its global app to an independent U.S.-specific version. It is TikTok’s most ambitious technical separation effort to date and would represent the deepest structural divide between ByteDance’s U.S. and international operations. The U.S.-only version would function much like Douyin, TikTok’s China-specific app, and would not be visible to users outside the U.S.

The initiative responds to the 2024 law requiring ByteDance to divest TikTok or face a ban, amid long-standing U.S. concerns about data privacy and national security. While content from the current app is expected to carry over, the new recommendation engine will be trained solely on U.S. user data. This is expected to shift content visibility toward American creators and possibly limit international reach for non-U.S. influencers.

Sources revealed that since January, TikTok has been removing non-U.S. user data from Oracle’s American data centers to comply with separation demands. Meanwhile, ByteDance has worked on splitting its algorithm’s codebase — a move it previously denied.

If the technical split is completed, U.S. operations would be managed independently of TikTok’s global team, although ByteDance engineers might remain involved on a limited basis. This has raised internal questions about whether the U.S. algorithm will retain its effectiveness without access to ByteDance’s global engineering expertise.

A potential sale would involve a joint venture including American investors such as Susquehanna International Group, General Atlantic, KKR, and possibly Oracle, along with new players like Blackstone and Andreessen Horowitz. ByteDance would retain a minority stake. However, Beijing’s approval remains uncertain due to China’s export restrictions on recommendation algorithms, a key concern in the stalled 2020 negotiations.

The separation effort is unfolding against a broader backdrop of U.S.-China trade tensions. While former President Donald Trump said last week he would resume discussions with China over the sale, he admitted uncertainty over Beijing’s cooperation, adding, “I think the deal is good for China and it’s good for us.”

Google Ordered to Pay $314 Million in California Cellular Data Class Action Verdict

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A jury in San Jose, California, has ruled that Google misused Android smartphone users’ cellular data without their permission, awarding over $314.6 million in damages to an estimated 14 million affected Californians. The verdict, delivered on Tuesday, found that Google collected and transmitted data from idle Android devices for its own benefit, imposing “mandatory and unavoidable burdens” on users.

The class action lawsuit, filed in 2019, argued that Google’s unauthorized data use served corporate purposes like targeted advertising while consuming users’ cellular data at their expense. Google denied wrongdoing, maintaining that users consented to data use via its terms of service and privacy policies, and claimed no harm was caused.

Google spokesperson Jose Castaneda stated the company plans to appeal, arguing the verdict “misunderstands services that are critical to the security, performance, and reliability of Android devices.” Plaintiffs’ attorney Glen Summers praised the decision, calling it a strong vindication of the case’s merits and highlighting the seriousness of Google’s misconduct.

Separately, a similar federal lawsuit covering Android users outside California is set for trial in April 2026 in San Jose.