FTC · DOJ · TikTok · Oracle · China · Engadget
TikTok will pay $400 million to settle Justice Department suit over child privacy
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The DoJ said the app has made significant strides in privacy protections since the 2024 suit.
Key facts
- Under the terms of the settlement, "TikTok will pay $300 million immediately," and pay another $100 million after its prior agreement with FTC is vacated, the DoJ said
- The settlement dates back to a 2024 lawsuit brought by then-President Joe Biden's Justice Department
- Known as TikTok USDS Joint Venture, the new company is controlled by a group of investors, including Oracle, Silver Lake and MGX
- The DoJ said the app has made significant strides in privacy protections since the 2024 suit
Summary
TikTok and ByteDance have reached an agreement with the Department of Justice to settle a lawsuit that claimed the app broke children's privacy laws. The settlement dates back to a 2024 lawsuit brought by then-President Joe Biden's Justice Department. In announcing the settlement, the Justice Department noted that the app has since "undergone significant changes to its ownership, management, compliance functions, and privacy practices. Known as TikTok USDS Joint Venture, the new company is controlled by a group of investors, including Oracle, Silver Lake and MGX. "The company has implemented extensive measures designed to strengthen safeguards for younger users, improve age-related controls, and enhance parental oversight," the DoJ said in a statement.