TikTok, ByteDance agree $400m settlement over US children’s privacy case

TikTok and its parent company, ByteDance, have agreed to pay $400 million to settle allegations by the United States government that the video-sharing platform violated federal laws protecting children’s online privacy.

The US Justice Department announced the settlement on Friday, saying TikTok would pay $300 million immediately and an additional $100 million once a court vacates an earlier consent decree involving TikTok’s predecessor, Musical.ly.

The department described the settlement as one of the largest recoveries obtained in a case involving the Children’s Online Privacy Protection Act, known as COPPA.

The Justice Department and the Federal Trade Commission sued TikTok and ByteDance in 2024, alleging that the platform knowingly allowed children to use its services while failing to comply with requirements governing the collection of minors’ personal information.

Under US law, online services directed at children are required to obtain parental consent before collecting their personal data.

The government said TikTok had exposed children to privacy risks by failing to adequately implement the required safeguards.

However, the Justice Department said TikTok had made significant changes since the lawsuit was filed, including changes to its ownership, management, compliance operations and privacy practices relating to younger users.

TikTok had not immediately commented on the settlement.

The agreement comes amid growing regulatory scrutiny of TikTok and other social media platforms over their treatment and protection of children.

In the European Union, regulators launched an investigation into TikTok in 2024 under the Digital Services Act, which sets rules for major online platforms.

The platform also faces potential sanctions in the EU after regulators accused it in July of failing to adequately protect children through account settings that could expose them to unwanted contact, cyberbullying and predatory behaviour.

The United Kingdom similarly launched an investigation in July to determine whether TikTok was doing enough under British law to protect children from harmful content.

The settlement adds to the mounting legal and regulatory pressure on TikTok as governments intensify efforts to protect minors from privacy violations and other risks associated with social media use.