Supreme Court rules in favour of TikTok over Data Protection watchdog claim

High Court Reporter

The Supreme Court has upheld a ruling that allows TikTok to continue operating practices in Ireland while the Data Protection Commission (DPC) pursues the China-based company for alleged breaches of privacy laws in how it treats users' personal data.

The DPC had sanctioned the social media giant for allegedly allowing user data to be accessed by engineers in China and directed it pay a fine of €530 million.

On Thursday, the Supreme Court dismissed an appeal from the DPC questioning the High Court's decision to put a stay on orders requiring it to pay the fine and to stop making user data accessible in China.

It is alleged that TikTok is in breach of EU data protection rules (GDPR).

TikTok is challenging the DPC's decisions.

TikTok, which is owned by Chinese company ByteDance, appealed the DPC decision in the High Court and was granted a stay on those orders until the result of the court's decision in the appeal case.

The stay decision was challenged by the DPC, who questioned whether the underpinning rationale applied by the court was based on EU or Irish law.

On Thursday, the five-judge Supreme Court unanimously dismissed the appeal and held that the test regarding the stay was a matter for national law.

In his judgment, Judge Brian Murray found that the High Court's stay was a consideration for national law, regarding balancing public interest rights and possible irreparable harm to the company in the event of a stay not being imposed on TikTok.

In today's summary judgment, Judge Murray dismissed the DPC appeal, saying that the legal test governing the stay is one of national law, not EU law, as questioned.

"The court must strike a balance between the irreparable harm caused to the applicant in the event that a stay is not imposed, and they prevail in their claim, and the damage to the public interest or right of third parties," said the judge.

Concurring with the ruling, Judge Gerard Hogan said the Irish law had not been "ousted" regarding the question brought by the commission.

He said the decision over TikTok's reprimand was not made with other authorities but was solely done by the DPC as a "lead supervisory authority".

Judge Hogan also dismissed the DPC argument that Irish law, regarding stays on regulatory bodies, could undermine EU law powers.

Last February, Judge Rory Mulcahy maintained the stay on the €530 million DPC fine and had "no hesitation" in granting the order sought. He was told that the full appeal was on track to proceed.

The substantive appeal is being brought by TikTok Technology Ltd. TikTok Technologies UK Ltd has been joined in the case as it will ultimately be responsible for paying any fine.

Previous court sittings have heard that TikTok user data originating in the European Economic Area is not stored in China, but is accessible to Chinese engineers.

TikTok claims the DPC breached fair procedures in arriving at its decision.