TikTok Is Spending $1.3 Billion to Dodge Bans in Europe

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TikTok Is Spending $1.3 Billion to Dodge Bans in Europe
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European politicians are nervous about where TikTok’s data goes. The company is spending big on local data centers, but analysts say it’s not enough.

The reason for such circumspection across Europe? The thing that has blighted TikTok throughout its existence: It is owned by ByteDance, which is registered in the Cayman Islands, but whose management is based in Beijing. That connection to China, and the perceived risk—despite denials from TikTok representatives—that the company would have to accede to Chinese state demands to share data with the Communist Party government, have raised fears.

The plan, which TikTok calls Project Clover, is a hugely expensive, and very visible, attempt to prove that the platform is neither breaking EU laws on data transfers nor sending sensitive user data to China. “We believe that this is genuinely industry-leading,” says Theo Bertram, TikTok’s vice president of public policy in Europe. “No one else has done something like this.”

But it may not be enough. Suspicion of Chinese technology runs deep in some parts of the EU and in the UK, where“I don't really know how this plays out,” Sam Sharps, executive director of policy at the Tony Blair Institute for Global Change, says. “And whether the reassurances they give—even if today, they meet the best standards of investigations of data protection authorities around Europe—are at a political level going to be enough.

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