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Tuesday, February 11, 2025

Chinese Firms TikTok, Shein, and Xiaomi Face GDPR Compliance Issues in Latest Complaint

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Xiaomi’s French division has responded to GDPR allegations, affirming their commitment to user privacy and compliance with data protection laws. Meanwhile, the Austrian organization noyb has filed complaints against various Chinese companies, including Xiaomi, for inadequate data protection practices, particularly concerning data transfers to China. They argue that such transfers expose user data to potential government access. noyb demands an end to these practices or significant fines for non-compliance, leveraging past successes to push for better data protection standards.

Response from Xiaomi Regarding GDPR Allegations

In light of recent developments, the French division of Xiaomi has issued a statement addressing the serious claims against them. They expressed awareness of a complaint lodged by a non-profit organization with a European data protection authority, asserting their commitment to user privacy. Xiaomi emphasized that the principles of transparency, accountability, and compliance with legal standards are foundational to their operations. The company reassured users that their privacy policy aligns with the General Data Protection Regulation (GDPR) and that user data is handled in accordance with local laws in every market where they operate. Xiaomi vowed to fully cooperate with any inquiries from national authorities related to this matter.

Concerns Over Data Protection with Chinese Companies

The pressing question arises: Can we truly trust that our personal data is secure while using devices from Xiaomi, engaging with TikTok, or shopping on Shein? According to noyb, an Austrian organization dedicated to protecting personal data, the answer is a resounding no. Recently, they filed a complaint against several Chinese companies for alleged violations of the GDPR across Europe.

This action encompasses popular applications like TikTok and WeChat, as well as major fashion retailers such as Shein and Temu. Notably, both AliExpress and Xiaomi have not been spared from scrutiny.

Founded by Max Schrems, noyb is no stranger to advocating for data rights, having previously taken on major players like Facebook and Twitter. The organization is filing six complaints across five countries, highlighting a pattern of inadequate data protection practices among these companies. They argue that user data is often sent to servers in China, where it is more vulnerable. Kleanthi Sardeli, a lawyer at noyb, pointed out that given China’s authoritarian nature, the level of data protection there cannot match that of the European Union.

As a result, noyb is calling for an immediate halt to data transfers to China, warning of the risks that could arise, including the potential for this data to be accessed by the Chinese government.

The organization also highlighted that companies like AliExpress, Shein, and TikTok openly state in their privacy policies that they transfer data to China. Xiaomi’s own transparency report from 2022 acknowledges the risk of Chinese authorities having potential access to personal data.

In light of these violations, noyb is advocating for an end to such data transfers or the imposition of hefty fines for non-compliance with European regulations. These penalties could reach up to 4% of a company’s global revenue, which could mean fines of 147 million euros for AliExpress and an astonishing 1.35 billion euros for Temu.

While the path forward for noyb may seem challenging, their previous successes in invalidating two agreements related to data transfers to the United States position them well to influence these companies toward better compliance with data protection standards.

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