The DOJ announced Friday that TikTok and its parent company ByteDance will pay $400 million to settle allegations related to violations of federal children’s privacy laws.
Axios reports that the DOJ has reached a significant settlement with social media platform TikTok and its parent company ByteDance over violations of the Children’s Online Privacy Protection Act (COPPA). The $400 million agreement represents one of the largest settlements ever secured in a case involving the federal privacy law designed to protect minors online.
Associate Attorney General Stanley E. Woodward Jr. characterized the settlement as a major achievement for American families. “This settlement is a major victory for American children and parents,” Woodward 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. This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve.”
The original lawsuit was filed by the Biden administration’s Department of Justice in 2024, alleging that TikTok failed to comply with requirements under COPPA. The law establishes strict guidelines for how companies must handle the personal information of users under the age of 13.
Under the settlement terms, the payment will be structured in two phases. TikTok and ByteDance will make an immediate payment of $300 million, followed by an additional $100 million payment that will be made upon entry of an order vacating a prior consent decree that was entered against Musical.ly, the app that preceded TikTok.
The DOJ noted that TikTok has taken extensive steps to address concerns about the safety of younger users on its platform. “The company has implemented extensive measures designed to strengthen safeguards for younger users, improve age-related controls and enhance parental oversight,” the DOJ stated. These developments, according to the Justice Department, have resulted in strengthened protections for millions of American families who use the platform.
Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division highlighted the practical impact of the settlement on children and families. “The most important result is that children and parents are better protected today than they were when this case began,” Shumate said in a statement. “This settlement reflects substantial progress, secures a significant monetary recovery and brings this matter to a successful conclusion.”
The $400 million settlement amount underscores the seriousness with which federal authorities are treating violations of children’s privacy protections in the digital age. As social media platforms continue to attract younger users, enforcement of COPPA has become an increasingly important priority for regulators concerned about how companies collect, use, and protect the personal information of minors.
Breitbart News previously reported that TikTok struck a deal to maintain its access to the U.S. market by changing its ownership structure:
TikTok announced Thursday that it has finalized an agreement to spin off its American operations into a new joint venture, ending years of uncertainty over the platform’s future in the United States. The deal resolves a prolonged battle over whether the widely popular video-sharing application would remain accessible to its millions of American users amid national security concerns.
According to a press release issued by the company, the newly established United States joint venture will function under strict protective measures designed to address national security issues. These safeguards encompass comprehensive data protection protocols, algorithm security measures, content moderation standards, and software assurances specifically tailored for users in the United States.
The ownership structure of the new joint venture distributes stakes among several major entities. Technology corporation Oracle will hold a fifteen percent ownership share in the venture. UAE-based investment firm MGX will also acquire a fifteen percent stake, while technology investment company Silver Lake will obtain an identical fifteen percent portion. ByteDance, the Chinese parent company that originally owned TikTok, will maintain a minority stake of 19.9 percent in the new American venture.
Read more at Axios here.
Lucas Nolan is a reporter for Breitbart News covering issues of AI, free speech, and online censorship.
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