Because like Facebook, it can do that, just because.
It is no better than Facebook and is in fact worse. Given the history of what TikTok has done and also has admitted to violating the privacy of its users [0] [1] [2] [3] in leaks and recordings, it needs to be fined for repeated offenses in the billions of dollars just like Facebook was once fined at.
Billion dollar fines for repeated offenses is much better than a outright ban and the regulators are never tired of collecting money from multi-billion dollar companies.
[0] https://www.buzzfeednews.com/article/emilybakerwhite/tiktok-...
[1] https://edpb.europa.eu/news/national-news/2021/dutch-dpa-tik...
[2] https://www.scmagazine.com/news/privacy/uk-tiktok-16m-fine-c...
[3] https://fortune.com/2022/12/22/tiktok-data-privacy-blunder-c...