US judge signals rejection of part of TikTok privacy settlement

US District Judge George H. Wu in Los Angeles expressed reservations about a part of the proposed $400 million settlement between TikTok and the US Justice Department, indicating he would reject it on Friday. The settlement, reached in August, involved TikTok paying $300 million upfront and an additional $100 million if a court ended a 2019 consent decree imposed on the app's predecessor, Musical.ly.

The consent decree, which requires TikTok to adhere to specific reporting and record-keeping obligations until 2029, mandates that the platform maintain the privacy and safety of its users, particularly children. Judge Wu's tentative rejection of the decree's termination stems from concerns that it may not be a durable solution or appropriately tailored to address any changes in circumstances.

The Justice Department and TikTok have not yet commented on the judge's decision. The $400 million settlement is part of a lawsuit filed by the Justice Department in 2024, alleging TikTok's violation of US privacy laws and illegal collection of personal information from users under 13. ByteDance, TikTok's Chinese parent company, agreed in January to establish a majority American-owned joint venture to protect US user data and prevent a potential US ban on the app, which is used by over 200 million Americans.