The Trump administration reached a USD 400 million agreement with TikTok over child privacy

The United States Department of Justice announced on Friday a USD 400 million settlement with TikTok and its parent company, ByteDance, to end a lawsuit related to alleged violations of federal child privacy laws. The settlement, considered one of the largest payments obtained under the Children's Online Privacy Protection Act (COPPA), represents a significant victory for the government of Donald Trump in its effort to hold large tech companies more accountable.

According to the terms of the settlement, TikTok and ByteDance will pay USD 300 million immediately, while the remaining USD 100 million will be due once a judge lifts an old consent decree related to ''Musical.ly'', the platform that later merged with TikTok. The companies are not required to admit liability as a condition of the settlement.

Associate Attorney General Stanley E. Woodward Jr. emphasized the importance of the resolution and stated that the main goal of the Department of Justice is to ensure that minors are protected online and that companies handling their data comply with the obligations set by law.

''This settlement is a great victory for American children and parents,'' said Woodward, who added that the resolution allows for a substantial economic recovery and reinforces the protections that families expect from digital platforms.

The case dates back to 2024, when it was filed in the United States District Court for the Central District of California. The investigation had been initiated by the Federal Trade Commission (FTC), but was later transferred to the Civil Division of the Department of Justice.

The lawsuit claimed that TikTok had not adequately complied with the requirements set by COPPA. Federal legislation requires that services directed at children under 13, or those that collect personal information from children, provide information to parents and obtain verifiable consent beforehand.

The Department of Justice noted that since the litigation began, TikTok has undergone significant changes in its ownership structure, compliance, and privacy policies. The company implemented stricter age controls, enhanced protection mechanisms, and parental supervision tools for younger users.

According to the DOJ, these reforms have significantly improved safety and privacy conditions for millions of American families. The government stated that the changes made by TikTok have also advanced the public interest goals that motivated the original lawsuit, which helped facilitate the resolution of the case.

Deputy Attorney General Brett A. Shumate of the Civil Division of the Department of Justice emphasized that companies collecting personal information from minors must fully comply with laws passed by Congress. The settlement demonstrates that Washington is willing to use its legal tools to protect children and hold companies accountable for failing to meet their obligations.

The resolution comes at a particularly significant time for TikTok, as the Trump administration has also recently modified some restrictions imposed on the app on government devices.

TikTok was banned on official equipment in 2022, after national security concerns arose related to ByteDance, its ties to China, and the platform's ability to collect large amounts of information about Americans. However, during August, the White House allowed certain Executive Branch employees to use TikTok on their official devices again.

On August 10, the Office of Management and Budget issued a memorandum that allowed the use of TikTok on devices of federal agencies and departments once again. The Department of Justice had taken a similar measure in July.

The government argues that the security conditions of the U.S. version of TikTok have changed. Currently, the U.S. platform is managed by ''TikTok U.S. Data Security Joint Venture'', which is majority-owned by U.S. investors. The company also employs external cybersecurity experts to oversee its systems, certify its privacy mechanisms, and detect potential vulnerabilities.

In a memorandum published in July, the Department of Justice stated that these safeguards apparently make TikTok USDS as secure in terms of data as other social media services, and potentially even more secure.

With the settlement, the Department of Justice closes a prolonged litigation and also sends a strong signal to the tech sector: collecting data from children involves legal obligations that companies must comply with, regardless of their size or influence.