TikTok will pay $400 million to settle Justice Department lawsuit over child privacy

TikTok and ByteDance agreed to pay $400 million to the Justice Department to resolve a 2024 lawsuit alleging violations of the Children’s Online Privacy Protection Act. The settlement follows the creation of TikTok USDS Joint Venture, a new U.S. entity controlled by investors such as Oracle, Silver Lake, and MGX, with ByteDance retaining a 19.9% stake. The payment includes $300 million immediately and $100 million after the prior FTC settlement is vacated.