TikTok and its Chinese parent company ByteDance have agreed to pay $400 million to settle a dispute with US authorities over the protection of children's personal data. This was reported by Qazaqyia.kz citing Reuters.
The US Department of Justice filed a lawsuit against TikTok and ByteDance in 2024. The companies were accused of illegally collecting data from users under 13 years old without obtaining parental consent.
The case concerns the Children's Online Privacy Protection Act (COPPA), which requires online services aimed at children to obtain parental consent before collecting personal information from users under 13.
"Our priority is to protect children online and ensure that companies entrusted with their personal data fulfill their legal obligations," said US Deputy Attorney General Stanley Woodward.
Under the settlement terms, TikTok will pay $300 million immediately. An additional $100 million will be transferred after the cancellation of a previous court agreement with Musical.ly, TikTok's predecessor.
This agreement follows a 2019 investigation by the US Federal Trade Commission, when Musical.ly was accused of collecting children's data without parental consent. The company paid a fine of $5.7 million.
The US Department of Justice noted that since the lawsuit was filed, TikTok has undergone significant changes in ownership structure, management, and user data protection systems.
The department stated that the agreement will strengthen protection for American families and avoid a lengthy court battle.
Earlier, in January, ByteDance agreed to create a separate joint venture in the US, with a controlling stake owned by American owners. This is expected to provide additional user data protection and help TikTok avoid a ban in the country.
Earlier, Kursiv reported that in Karaganda, a 56-year-old TikTok streamer, Erken Zhantykpaev, was arrested for 10 days after police became interested in his content. According to the Karaganda Regional Police Department, the man dressed in women's clothing and corresponded with minors.