The DoJ said the app has made significant strides in privacy protections since the 2024 suit.
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TikTok and ByteDance have reached a binding settlement with the U.S. Department of Justice to resolve allegations that the app violated children’s privacy laws. The DOJ announced the agreement, describing it as one of the largest resolutions ever secured under the Children’s Online Privacy Protection Act (COPPA).
The resolution stems from a 2024 legal action initiated by the Justice Department during President Joe Biden’s administration. Authorities alleged that TikTok and its parent company ByteDance breached an earlier Federal Trade Commission (FTC) settlement tied to its acquisition of Musical.ly. The suit further claimed the app enabled users under 13 to create accounts and improperly gathered data from children in its “Kids Mode” feature. TikTok was also accused of repeatedly failing to honor parental requests for data deletion.
In its statement, the DOJ acknowledged TikTok’s substantial improvements to privacy infrastructure since the lawsuit began. The company restructured its U.S. operations into a new entity, TikTok U.S. Security-Dialect Joint Venture, governed by investors including Oracle, Silver Lake, and MGX, with ByteDance retaining a 19.9% stake. The DOJ recognized the firm’s efforts to enhance age verification systems, strengthen parental controls, and implement stricter compliance protocols.
Key settlement terms require TikTok to pay $300 million immediately, with an additional $100 million disbursed following the termination of its existing FTC agreement. A TikTok spokesperson declined to comment on the decision. The resolution concludes a years-long regulatory battle that intensified after the app faced heightened scrutiny over data handling practices and geopolitical concerns surrounding its Chinese ownership.
The resolution removes TikTok from an earlier ban prohibiting its use on federal government-issued devices, following an OMB review that confirmed compliance with national security directives. The app’s continued operation in U.S. markets remains permitted under updated oversight frameworks established through its restructuring efforts.
