TikTok Settles for $400 m as Child‑Privacy Lawsuit Resolved
TikTok has agreed to pay a total of $400 million (approximately 293 million pounds) to the United States to settle a lawsuit brought by the Department of Justice, accused of collecting vast amounts of data from users under the age of 13 and violating the Children’s Online Privacy Protection Act (COPPA).
The settlement requires an immediate $300 million payment, with a further $100 million due if the government subsequently vacates a 2019 FTC consent decree that originally imposed penalties on the platform’s predecessor, Musical.ly. Under the agreement, TikTok and ByteDance have made significant changes to ownership, privacy practices and controls that affect younger users.
Tech firms have faced large penalties in the past for COPPA violations: Google’s YouTube paid $170 million in 2019, and Epic Games paid $275 million in 2022. Meta is currently embroiled in lawsuits that could expose it to penalties exceeding hundreds of billions of dollars.
The lawsuit predates last year’s separation of TikTok’s U.S. operations from its China‑based operations; the settlement specifically concerns TikTok’s operations in China, which are now 81 % owned by an investor consortium, while ByteDance retains a 19 % stake.
The case illustrates the growing regulatory scrutiny of social media platforms that serve large numbers of children, as U.S. policymakers under both the Biden and Trump administrations sought either a ban or divestment of the app. The settlement reflects heightened oversight and shifts in how the company’s privacy policies are structured.
For more context, see related coverage on Meta’s ongoing child‑privacy trial and the broader implications of U.S.‑China tech deals for users in the region.
