EU Fines Loom for TikTok, Ali Express, WeChat
The potential fines, which could reach up to 4% of global annual revenue, pose significant regulatory, operational, and reputational risks for investors. To mitigate these risks, investors should diversify exposure, monitor enforcement trends, assess compliance costs, and factor in geopolitical risks.
Digital rights organization noyb has filed GDPR complaints against Chinese companies TikTok, AliExpress, and WeChat for failing to comply with access requests under Article 15 GDPR, potentially facing fines of up to 4% of global annual revenue.
The complaints, filed in Belgium, Greece, and the Netherlands, allege that the companies have ignored or obstructed European users' right to access their personal data, making it impossible for them to exercise their fundamental right to privacy. TikTok provided incomplete data in an unstructured form, AliExpress provided a broken file, and WeChat ignored the request altogether.
This is part of a larger issue of Chinese companies violating EU data protection laws, particularly with regards to data transfers to China. noyb has also taken legal action against these companies for unlawful data transfers to China. The European Union's General Data Protection Regulation (GDPR) has become a critical battleground for Chinese tech firms, with enforcement actions intensifying against companies like TikTok, AliExpress, and WeChat.
Non-compliance risks long-term reputational damage, with European consumers and regulators increasingly skeptical of Chinese tech firms' data practices. A 2025 EU survey found that 62% of users distrust Chinese platforms with their personal data, compared to 38% for U.S. firms. Global investors face key risks, including regulatory uncertainty, market access threats, and shareholder volatility.
The complaints have significant implications for Chinese tech firms operating in the EU, highlighting the need for compliance with GDPR and the potential consequences of non-compliance. As the regulatory landscape continues to evolve, investors and companies must navigate these risks to ensure long-term success.