TikTok Pays $400 Million to Settle with US Authorities
The Platform Ends Investigations, Avoids Legal Dispute
The short-video platform TikTok is settling a lawsuit by US authorities with a payment of $400 million. The core accusation is that TikTok unlawfully collected data from children. According to the US Department of Justice, the settlement is not an admission of guilt.
The Proceedings
The US Department of Justice had sued TikTok in 2024, under President Joe Biden. The accusation: The platform allowed children under 13 to create accounts without parental consent, violating the US Children's Online Privacy Protection Act. US online platforms generally set a minimum age of 13 due to this law; however, children repeatedly bypass this with false birth dates. Critics accuse companies of not acting decisively enough against this practice.
Change of Ownership and New Data Protection Practices
In justifying the settlement, the Department of Justice cited, among other things, the change of ownership in TikTok's US business and revised data protection practices. President Donald Trump had mandated that the app's US business be majority transferred to a new company with American investors by early 2026. This secured the service's future in the US after about a year of uncertainty: A US law required the China-based owner ByteDance to at least divest from the US business for the app to remain active in the country. ByteDance remains in control for the rest of the world.
