By HALELUYA HADERO (AP Business Writer)
NEW YORK (AP) — The Federal Trade Commission is investigating TikTok over its data and security practices, a probe that could result in a settlement or a lawsuit against the company, according to a person familiar with the matter.
The investigation is the latest battle in Washington for the social media company, which is also facing a federal bill that could ban the platform in the U.S. if it doesn’t break ties with its Beijing-based parent company, ByteDance.
In its investigation, the FTC has been examining whether TikTok broke a federal law that bans “unfair and deceptive” business practices by denying that people in China had access to U.S. user data, said the person, who is not authorized to discuss the investigation.
The agency is also investigating the company over potential violations of the Children’s Online Privacy Protection Act, which requires apps and websites for kids to get parents’ consent before collecting personal information from children under 13.
FTC spokesperson Nicole Drayton and TikTok declined to comment on the investigation, which was first reported by Politico.
The agency is close to finishing its investigation and could make an agreement with TikTok in the coming weeks. But there’s no deadline for an agreement, the person said.
If the FTC decides to file a lawsuit instead, it would need to involve the Justice Department, which would have 45 days to decide whether to pursue the case, make changes, or send it back to the agency.
The news comes almost two years after Senate Intelligence Committee Chairman Mark Warner and Marco Rubio, the top Republican on the committee, asked FTC chair Lina Khan to investigate TikTok, referring to a report from Buzzfeed News that said people at ByteDance in China had repeatedly accessed data on U.S. TikTok users.
In late 2022, ByteDance said it fired four employees who accessed data on journalists from Buzzfeed News and The Financial Times while trying to track down leaks of confidential materials about the company.
The House approved a bill this month that could determine TikTok’s future in the U.S. But the bill has faced obstacles in the Senate, where there is little agreement on how to address concerns about the social platform.
Lawmakers and intelligence officials are concerned that the platform could be used by the Chinese government to access U.S. user data or influence Americans through its popular algorithm. So far, the U.S. government hasn’t publicly provided evidence that this has occurred.
