TikTok has agreed to pay $400 million to settle a US lawsuit accusing the platform of mishandling children’s personal data.
It is one of the biggest penalties of its kind.
The case dates back to 2024, when the US Justice Department alleged that TikTok and its parent company, ByteDance, collected large amounts of information from users under 13.
This was without obtaining the parental consent required under federal law.
So what happens now? TikTok and ByteDance will immediately pay $300 million.
Another $100 million is due once the government ends an earlier agreement involving TikTok’s predecessor, Musical.ly.
Reuters
TikTok has been under pressure in the US since 2024.
Settlement Raises Child Safety Questions
Assistant Attorney General Brett Shumate said the settlement means “children and parents are better protected today.
They were better protected than they were when this case began.”
The penalty follows major settlements involving other tech giants.
YouTube paid $170 million in 2019 over alleged children’s privacy violations, while Epic Games agreed to pay $275 million in 2022.
The case also arrives as scrutiny of social media companies and children intensifies.
Meta is facing a separate lawsuit brought by 29 US states over allegations that its platforms targeted young users.
TikTok’s US business has since undergone major ownership changes.
But one question remains: can hefty fines actually force Big Tech to put children’s privacy ahead of growth?
