TikTok has agreed to pay $400 million to settle a lawsuit with the U.S. Department of Justice over allegations that the video-sharing platform violated federal children's privacy laws, the department announced. The settlement ends a 2024 lawsuit that charged TikTok with collecting personal data from users under the age of 13 without parental consent and failing to honor requests to delete such accounts. Under the terms of the agreement, TikTok will pay $300 million immediately and an additional $100 million once a previous consent decree against its predecessor company, Musical.ly, is vacated by a court. This makes it one of the largest recoveries ever obtained from a case involving the Children's Online Privacy Protection Act (COPPA). The lawsuit, filed by the Justice Department and the Federal Trade Commission, alleged that TikTok and its parent company, ByteDance, collected personal information from underage users without parental approval. The suit specifically targeted instances where accounts created in a "Kids Mode" were still collecting email addresses and other personal data, despite being designed for users under 13. Additionally, the complaint stated that TikTok did not remove accounts even when it was known that they belonged to children under 13, violating COPPA regulations that prohibit the collection of personal information from minors without parental consent. The settlement follows a series of legal actions taken against major technology companies regarding children's privacy and safety. In March 2024, the Justice Department reached a settlement with Live Nation, the owner of Ticketmaster, over allegations of monopolistic practices. Earlier that year, the government also allowed Hewlett Packard Enterprise to acquire Juniper Networks despite objections from some state attorneys general. These developments indicate a broader trend of regulatory scrutiny aimed at holding corporations accountable for their handling of user data, particularly concerning minors. TikTok has undergone significant structural changes since the lawsuit was initiated, most notably in the ownership structure of its U.S. operations. In January, the company formed a new joint venture with major investors including Oracle, Silver Lake, and the Emirati investment firm MGX. This move was partly driven by efforts to avoid potential bans under the Trump administration, which had previously sought to compel ByteDance to divest its U.S. assets. However, following the return of Donald Trump to the presidency, enforcement of a law requiring TikTok to be sold to a non-Chinese owner was delayed. Eventually, ByteDance reached an agreement to spin off its American operations to a group of non-Chinese investors. The settlement also highlights increasing international pressure on TikTok. Regulators in Europe have intensified their focus on the app, launching investigations under the Digital Services Act (DSA). The European Union accused TikTok of failing to adequately protect children from risks such as cyberbullying and predatory behavior, potentially leading to significant fines. Similarly, the UK's communications regulator, Ofcom, initiated an inquiry into whether TikTok complies with legal requirements to safeguard children from harmful content. These actions reflect a global effort to ensure that digital platforms adhere to stricter standards for protecting young users. The U.S. Department of Justice emphasized that the settlement represents a major victory for American children and parents, reinforcing the need for companies to uphold their legal responsibilities regarding the privacy and safety of minors. While the exact use of the settlement funds remains unclear, reports suggest that the Trump administration might consider allocating the money towards ongoing "beautification" projects, though this has yet to be confirmed. As regulatory pressures continue to mount globally, TikTok faces mounting challenges in aligning its operations with evolving legal expectations surrounding children's online safety and privacy.
★
Keep the news honest.
ObjectiveNews is reader-funded and ad-free — we show you the bias instead of hiding it. Support independent journalism for €4/month.
Become a Supporter
Ireland
