TikTok's woes in the US appear to be deepening, with a prolonged investigation into its data handling practices reaching a critical juncture. The Federal Trade Commission (FTC) is poised to take action, potentially in the form of a lawsuit or hefty fines, against both TikTok and its parent company, ByteDance, for alleged mishandling of children's data privacy and security.
Reports from Politico indicate that the FTC's focus centers on TikTok's privacy and security protocols, particularly regarding the handling of children's data. This scrutiny includes potential violations of the Children's Online Privacy Protection Act (COPPA) and claims of misrepresentation concerning data access for Chinese entities.
Furthermore, TikTok's previous settlement with regulators in 2019 regarding data privacy is under review, with potential penalties looming for any breaches.
This regulatory pressure comes at a challenging time for TikTok, as it grapples with legislative threats that could lead to its outright ban in the US. The recent approval of a bill in the House, now under consideration in the Senate, seeks to force ByteDance into divesting TikTok or face prohibition.
The Biden Administration has thrown its weight behind this legislation, aligning with efforts to compel ByteDance to relinquish control of TikTok. Additionally, concerns over national security, as briefed by US intelligence officials to lawmakers, further complicate TikTok's situation.
Overall, TikTok finds itself navigating a complex landscape of regulatory scrutiny and legislative threats in its efforts to maintain its presence in its largest market.
