TikTok reaches $400 mil. settlement with US Justice Department over children's privacy

TikTok has reached a $400 million settlement with the U.S. Department of Justice (DOJ), ending a 2024 lawsuit alleging the company violated federal children's privacy laws.

The DOJ said Friday that TikTok will pay $300 million immediately and another $100 million after an order vacates an earlier consent decree against its predecessor company, Musical.ly. “This settlement is a major victory for American children and parents,” said U.S. Associate Attorney General Stanley E. Woodward Jr. 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.” Since the DOJ's lawsuit in 2024, TikTok has undergone major changes, most notably in the ownership structure of its U.S. arm.

In January, the social video platform company signed agreements with major investors including Oracle, Silver Lake and the Emirati investment firm MGX to form the new TikTok U.S.