Kathmandu— Brazilian regulators have fined TikTok’s parent company, ByteDance, nearly $30 million for alleged violations of data privacy laws concerning children and teenagers. The ruling states that TikTok collected and processed young users' personal information without proper legal basis or safeguards, impacting an estimated 8 million individuals. The regulator has ordered the company to erase illegally obtained data and develop a more robust youth-protection framework, citing deficiencies in its age-verification systems. ByteDance has ten days to appeal the decision.

Data Privacy Concerns

Brazil’s data protection authority found that TikTok breached privacy laws through both logged-in accounts and guest browsing sessions. The regulator asserted that the platform collected and processed personal information from young users without obtaining valid legal consent or implementing adequate security measures to protect their data. This practice, they claim, represents a systemic issue within TikTok's operations in Brazil.

Age Verification Weaknesses

A key concern raised by the regulator is the inadequacy of TikTok’s age-verification mechanisms. The authority estimates that at least 8 million children may have had their data processed through the platform due to these shortcomings. Specifically, the ‘logged-out feed’ feature—allowing users to browse content without an account—was identified as a major loophole enabling minors to access the platform while circumventing age checks. This feature is reportedly available in Brazil but not in countries like the United States or Europe, where TikTok restricts access to registered users only.

Broader Regulatory Crackdown

This penalty for TikTok follows a recent order from the same Brazilian regulator requiring Discord to suspend its livestreaming feature nationwide. That decision stemmed from accusations that Discord failed to protect children and teenagers, following a tragic incident involving a 13-year-old girl who died by suicide during a livestream where she was allegedly encouraged to self-harm. Brazil’s government, under President Luiz Inácio Lula da Silva, is actively pursuing regulations regarding internet use by minors, aligning with similar efforts underway in countries like Australia, Canada, and Indonesia.

ByteDance has the opportunity to appeal the $30 million fine within the next ten days. The regulator also expects TikTok to implement a comprehensive youth-protection framework as part of its compliance measures.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.