As we await word on TikTok’s fate in the U.S., the platform is also working to appease EU regulators, by separating EU user data from its Chinese home base, and providing more assurances that its operations remain entirely separate in this respect.
On this front, TikTok has today provided an update on its “Project Clover” data security initiative, which aims to ensure that European user data is not being accessed by China-based employees and officials.
The project was largely brought online in July last year, and now, TikTok says that it’s reached a new milestone, with its latest, and final European data center now in operation.
As per TikTok:
“All three buildings in our Norwegian data center are now online. The data center in Hamar, Norway, developed by Green Mountain, plays an important role in the local economy. The site currently supports around 200 jobs, including IT engineers, electricians, and cooling specialists, contributing to regional employment and technological expertise.”
TikTok says that the establishment of its Norwegian data center is a key part of “dedicated European enclave,” where EU TikTok user data will now be stored by default.
Furthering this, TikTok has also engaged cybersecurity firm NCC Group to independently oversee and verify its data controls.
“NCC Group has also confirmed that TikTok’s data collection practices align with our European Privacy Policy in a recent assessment.”
With this, TikTok’s European user data is now being stored in its dedicated European data centers, and hosted across its facilities in Norway, Ireland, and the U.S., ensuring that there are no data transfers back to China.
Which is timely, given that TikTok is also set to be issued with a $US552 fine by the Irish Data Protection Commission for previous transfers of European users’ data to China.
The initial investigation that led to this fine is part of what sparked Project Clover in the first place, and it does seem like TikTok is going to have to pay this penalty, despite the project now providing clearer separation.
Which adds to the total cost of TikTok’s data protection efforts, which, in Europe alone, have cost parent company ByteDance around $US13 billion in construction and management.
That $552 million will now just be added to the bill, further raising its outgoings, and putting more pressure on the app the recoup those costs.
Which TikTok is working to do by expanding its in-stream commerce push.
The platform had been focused on the U.S. market as its key gateway for in-app sales, but it’s recently expanded its TikTok Shop tools in Europe as well, as it looks to hedge its U.S. bets, and broaden its monetization potential.
And with so many extra expenses on the line, that makes sense, and it’ll be interesting to see whether EU users are interested in TikTok’s shopping options, and if that can become a big earner for the app.
Because thus far, Western audiences have been far less enamored with TikTok’s shopping tools than Chinese users. In China, the local version of TikTok (Douyin) now generates the majority of its income from in-app sales, driving a reported $US490 billion in GMV in 2024. For comparison, TikTok’s GMV in 2024 was around $30 billion.
But even so, TikTok’s in-stream sales have been growing, and it may still be able to drive significant income from a broader EU shopping push.
So, TikTok now has data separation measures in place in Europe, and it’s working to meet the new requirements on the same in the U.S., where it’s very close to being sold off to a new, American-based entity.
That, at least in theory, should ease concerns about Chinese influence over the app, and it’ll be interesting to see if that’s enough to appease the various overseers in each region.
