TikTok agrees to $400m settlement over illegal data collection from children

In a significant legal development, TikTok and its parent company ByteDance have agreed to pay $400 million to settle a lawsuit brought by the US government. The settlement, announced by the US Department of Justice, resolves allegations that the social media platform unlawfully collected personal data from children. The case, initiated in 2024 under the Biden administration by the DOJ and Federal Trade Commission, effectively concludes without a court trial or establishing liability.

The government accused TikTok of allowing millions of children under the age of 13 to create accounts without parental consent and retaining their personal information. They also alleged that the platform frequently failed to delete children’s accounts and data upon parental requests. This resolution comes amid US President Donald Trump's shift in stance on the Chinese-owned platform.

Initially seeking to ban TikTok due to national security concerns, Trump later opposed such efforts, claiming its absence would benefit rival Meta. He also criticized Meta for political bias and censorship, particularly following the January 6, 2021 Capitol riot. The DOJ's announcement this year contrasted with its 2024 description of TikTok and ByteDance as "repeat offenders" with "significant changes" to their ownership, management, compliance, and privacy practices.

Since Trump's return to the White House, he has intervened to prevent TikTok's forced exit from the US, backing a US-based joint venture majority-owned by American investors to allow the platform to continue operating.