Chinese businesses TikTok, Shein, and Xiaomi face EU data breach allegations.

Noyb, an Austrian privacy advocacy group, has filed a formal complaint against several Chinese tech giants, including TikTok’s parent company ByteDance, Xiaomi, and Shein, accusing them of violating European Union (EU) data protection regulations by illegally transferring personal data from European users to China.

This is Noyb’s first legal action against Chinese corporations, after successfully suing large American firms like as Apple, Meta, and Alphabet.

The group is now pressing for a freeze of data transfers to China, as well as sanctions of up to 4% of each company’s global sales.

ByteDance, Xiaomi, and Shein are among those named in the case, which also includes Alibaba’s AliExpress, retailer Temu, and Tencent’s WeChat. Noyb argues that these firms transport data from European consumers to China or unidentified “third countries”

The organization wants to see more openness in how these corporations handle personal data.

According to the EU’s General Data Protection Regulation (GDPR), data transfers beyond the EU are only permitted if the destination country provides a comparable level of data protection. However, Noyb claims that China’s autocratic government and surveillance techniques do not match the EU’s criteria.
“Given China’s authoritarian surveillance state, it is clear that China does not provide the same level of data protection as the EU,” said Kleanthi Sardeli, a data privacy lawyer at Noyb. “Transferring Europeans’ data is unlawful and must be terminated immediately.”

The lawsuit illustrates the continuous conflict between Chinese technology corporations and international regulators. TikTok, which is owned by ByteDance, has come under increased attention in a number of nations, with regulatory problems arising from data security concerns and the possibility of electoral influence.

The European Commission has also looked into TikTok’s alleged inability to prohibit electoral meddling during the Romanian presidential election in November 2024.

Noyb’s protest is part of a rising movement to tighten GDPR compliance and prevent firms from damaging user privacy rights. As the case develops, the EU will closely monitor the situation, which might have serious consequences for Chinese IT companies operating in Europe.