TikTok could face a $29 million fine in the UK for failing to protect kids' privacy

LONDON — TikTok whitethorn look a £27 cardinal ($29 million) good successful the U.K. aft privateness regulators recovered failings successful the company's handling of children's data.

The Information Commissioner's Office issued TikTok a "notice of intent" informing the Chinese-owned video app of its "provisional presumption that TikTok breached UK information extortion instrumentality betwixt May 2018 and July 2020." It follows an probe into the institution that began successful 2019.

According to the ICO, TikTok whitethorn person processed the information of children nether the property of 13 without parental consent, failed to contiguous accusation to its users successful a mode that's casual to understand, and processed "special class data" — specified arsenic accusation connected a person's contention oregon ethnicity — without ineligible grounds.

"We each privation children to beryllium capable to larn and acquisition the integer world, but with due information privateness protections," Information Commissioner John Edwards said successful a statement Monday.

"Companies providing integer services person a ineligible work to enactment those protections successful place, but our provisional presumption is that TikTok fell abbreviated of gathering that requirement."

The ICO noted that its findings are "provisional" and that "no decision should beryllium drawn astatine this signifier that determination has, successful fact, been immoderate breach of information extortion instrumentality oregon that a fiscal punishment volition yet beryllium imposed." The ICO tin contented a maximum good amounting to 4% of TikTok's yearly planetary revenues nether the EU's GDPR, which is inactive enshrined successful U.K. law.

TikTok present has 30 days to travel up with a effect to the decision. If institution officials marque a convincing capable lawsuit defending its handling of children's data, the ICO whitethorn trim the size of the penalty, oregon refrain from imposing a good altogether.

In a connection to CNBC, a TikTok spokesperson said the institution disagrees with the ICO's provisional good and plans to marque a ceremonial response.

"While we respect the ICO's relation successful safeguarding privateness successful the UK, we disagree with the preliminary views expressed and mean to formally respond to the ICO successful owed course," the TikTok spokesperson said.

The ICO said it is looking into 50 antithetic online platforms' handling of children's information overall, and has six progressive investigations into companies "who haven't, successful our archetypal view, taken their responsibilities astir kid information earnestly enough."

TikTok is highly fashionable with teens, who station everything from dancing videos to acquisition clips astir the warfare successful Ukraine. The platform, owned by Beijing-based net elephantine ByteDance, is present utilized by implicit 1 cardinal radical worldwide each month.

Last year, the Netherlands' Data Protection Authority handed TikTok a 750,000 euro ($723,371) fine for violating the privateness of young children and failing to connection its accusation successful Dutch. TikTok is appealing the fine.

For years, TikTok had mostly skirted the attraction of regulators, with overmuch of the absorption reserved for American firms similar Facebook and Google. However, the institution — present a unit to beryllium reckoned with successful the conflict for eyeballs online — is being subjected to heightened governmental scrutiny.

Western officials are disquieted the level whitethorn beryllium providing a backdoor to Beijing allowing it to snoop connected non-Chinese users. Before his tumultuous tenure arsenic U.S. person came to an end, erstwhile President Donald Trump had tried to unit TikTok to divest its U.S. division.