The company will pay $300 million immediately and another $100 million after a court dismisses an earlier consent decree entered against TikTok’s predecessor, known as Musical.ly, according to the DOJ, The Hill reported.
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The DOJ sued TikTok and ByteDance in 2024, accusing the video-based social media app of violating the Children’s Online Privacy Protection Act (COPPA). The law bars online platforms from collecting data on users younger than 13 years without their parents’ consent.
The government alleged that the company allowed kids younger than 13 to create accounts and failed to delete their accounts and information when asked by parents.
“This settlement is a major victory for American children and parents,” Associate Attorney General Stanley Woodward Jr. said in a statement.
“The Department’s priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations,” he continued. “This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve.”
The DOJ noted in a press release that TikTok has “undergone significant changes to its ownership, management, compliance functions, and privacy practices” since it brought the lawsuit two years ago.
The platform is now under the control of TikTok USDS Joint Venture, an entity that is majority owned by American investors, after Congress passed a law in 2024 requiring ByteDance to divest from the app or face a U.S. ban.
The push for the divest-or-ban law stemmed from national security and privacy concerns about ByteDance’s ties to China. President Trump repeatedly pushed back the deadline to enforce the ban after taking office, as he sought to strike a deal with Beijing to keep the app available in the U.S.
Trump signed off on a deal to turn over TikTok to the joint venture last September. ByteDance maintained a 19.9 percent stake in the company, while Silver Lake, Oracle and MGX each received a 15 percent stake and are considered managing investors.
