TikTok and Apple caught red-handed sending user data overseas without consent
TikTok tracked user clicks and purchases, while Apple tapped into Siri recordings.
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- South Korea fined TikTok and Apple over $7.7 million for unlawful overseas transfers of user data.
- TikTok received the larger fine after regulators said it tracked 9.45 million users for personalized ads without clear notice.
- Apple was fined for using Siri voice recordings and transcripts without proper consent or clear overseas transfer notices.
- The ruling signals South Korea expects global tech firms to meet domestic privacy standards when handling citizens’ data.
A Korean investigation has found that Apple and TikTok are unlawfully transferring user data. According to the investigation, both companies “collected, utilized, or transferred users’ personal data abroad without proper legal grounds.”
South Korea has fined TikTok and Apple a combined over $7.7 million (10.3 billion Won) for illegal data collection.
While both companies violated privacy laws, TikTok received by far the larger penalty, with a $7.6 million (10.36 billion Won) fine, while two Apple affiliates were ordered to pay around $185,000 (252 million won).
South Korea’s Personal Information Protection Commission (PIPC) enforced sanctions after concluding investigations into how companies handle user data.
Alongside the financial penalties, regulators issued corrective orders and required both companies to publicly disclose the violations.
South Korea's privacy watchdog said that the decision shows that international companies must meet the same standards as domestic companies.“We will do our utmost to ensure that the personal information of our citizens is protected safely and transparently, even as it crosses borders in complex environments,” the commission’s spokesperson said to Asia Business Daily.
TikTok tracked users to show ads
According to the commission, 9.45 million South Korean users were affected when TikTok collected their behavioral data.
In delivering advertising and content performance analysis services, TikTok distributed behavioral data collection tools to other businesses. This way, tracking tools were embedded in third-party websites and mobile applications.
They collected user activity such as clicks, purchases, browsing behavior, and device identifiers. Regulators said TikTok linked this information to TikTok accounts to deliver personalized advertising.
However, investigators found the company failed to clearly explain that such behavioral data would be collected. Upon creating an account, users were asked to agree to data collection as a mandatory condition.
The regulator also found that TikTok failed to properly inform users about personal data being transferred overseas. While the company disclosed that it shared information with affiliated companies, it did not specify which categories of personal data were transferred.
According to the commission, TikTok's fine size was calculated based on revenue generated from personalized advertising that relied on behavioral data that the platform collected.
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Apple used Siri recordings
Apple was also fined by Korean regulators for mishandling data collected via its virtual assistant Siri.
The commission found that until August 2019, Apple collected users' voice recordings and transcripts to improve Siri's speech recognition and search capabilities without a separate user consent.
Although Apple introduced an opt-in system for voice recordings in October 2019, investigators determined that text transcripts generated from Siri interactions continued to be used for service improvements without a valid legal basis.
The company also transferred data overseas to Apple headquarters in the United States without informing users what kind of data was transferred. Also, the company did not adequately inform why the information was being transferred.
Apple introduces new measures to reduce the fine
The commission said Apple's penalty was reduced after the company introduced several privacy improvements during the investigation.
Those measures included allowing users to decide whether Siri transcripts could be shared for service improvement. Users can also filter personal information contained in transcripts and update their privacy policy.
Regulators also noted that Siri is a free service, making it difficult to calculate revenue linked to the violations.
TikTok said it would review the regulator's findings after receiving the official decision.
“Protecting users’ personal information and information security is one of our highest priorities, and we are doing our best to comply with relevant laws and regulations in Korea,” a TikTok representative stated to Asia Business Daily.
Apple has stated that it will accept the decision.
“We are committed to ensuring the safety and protection of domestic users’ personal information, and we will continue to cooperate with the Korean government in this regard,” an Apple spokesperson said.
