TikTok to pay $400 million to US over child data protection violations

TikTok has reached a $400 million settlement with the US Department of Justice over allegations of violating child data protection laws for users under 13, moving towards the resolution of a lawsuit filed in 2024.

Under the settlement, TikTok will pay $300 million immediately, with an additional $100 million to be paid later, the US Department of Justice announced on Friday.

The lawsuit accused TikTok and its Chinese parent company, ByteDance, of collecting personal information from children under 13 without obtaining parental consent.

It was also alleged that even when parents requested the deletion of their children's accounts, TikTok and ByteDance failed to properly act on those requests. Furthermore, accounts known to belong to children under 13 were not deleted, according to the lawsuit.

Associate Attorney General Stanley E. Woodward Jr. described the settlement as a significant victory for American children and parents, adding that ensuring children's online safety remains a top priority for the government.

Since the lawsuit was filed in 2024, several changes have been made to TikTok's operations in the US, notably in the company's ownership structure.

In January this year, TikTok signed agreements with Oracle, Silver Lake and UAE-based investment firm MGX, paving the way for a new joint venture in the US.

The case comes as social media platforms face a growing number of similar lawsuits globally, with various countries also taking steps to restrict children and adolescents' use of social media.

Concerns over children's online safety and data protection are increasing worldwide, with Meta currently facing similar legal challenges in US courts over alleged violations of child privacy protection laws.

While the $400 million settlement moves the 2024 case towards resolution, it also signals that US scrutiny of technology companies' child data protection practices is likely to intensify.