US judge signals setback in TikTok’s $400m privacy deal

A California federal judge has tentatively rejected a portion of the U.S. government’s $400 million settlement with TikTok, potentially maintaining oversight of the social media platform, according to Bloomberg. U.S. District Judge George H. Wu denied a request on Friday to void an order originally imposed on Musical.ly, the predecessor to TikTok acquired by ByteDance.

The order pertains to privacy protections for users under the age of 13. Judge Wu stated that neither TikTok nor the U.S. government demonstrated that the obligations under the earlier order were no longer necessary. This ruling could impact a part of TikTok’s $400 million settlement reached in August to address child privacy allegations raised during the Biden administration.

Out of that sum, $100 million was contingent on vacating the earlier consent decree. Judge Wu noted that alterations to TikTok’s ownership structure, compliance measures, and the recent settlement did not demonstrate substantial compliance with the existing order or render its protections obsolete. He intends to retain oversight of TikTok’s privacy practices.

The decision complicates TikTok’s U.S. operations following years of government scrutiny due to the platform’s Chinese ownership. A deal finalized in January between the Trump administration and ByteDance transferred parts of TikTok’s U.S. operations to American investors, seemingly resolving a separate dispute over ownership and operations in the country.

The $400 million privacy settlement in August addressed allegations regarding younger user protections. TikTok and the U.S. Department of Justice did not comment on Bloomberg's requests for comment after business hours. Judge Wu's decision is tentative, with a hearing on the government's request to dismiss the consent decree set for September 21.