TikTok agrees to multi-million dollar payment following lawsuit over minors’ privacy in the U.S.
The popular video platform TikTok will have to pay $400 million in compensation in the United States, after reaching an agreement with the Department of Justice. The penalty responds to a lawsuit that accused the company of violating the privacy of users under thirteen years of age, by collecting personal information without the proper consent of their parents or legal guardians.
The litigation, initiated in 2024, pointed out that both TikTok and its predecessor, Musical.ly, allowed the registration of minors and ignored requests for the deletion of profiles and personal data made by parents. These practices contravene the Children’s Online Privacy Protection Act, a regulation that requires strict safeguards for handling the data of child users.
Agreement details and regulatory compliance
- The total payment has been structured in two parts: $300 million for immediate delivery and an additional $100 million subject to the withdrawal of charges against Musical.ly.
- The Department of Justice described the agreement as a triumph for the protection of American families in the digital environment.
- TikTok has implemented modifications to its management, privacy policies, and internal structure to align with the required regulatory standards.
Alofoke DeportesThe resolution seeks to guarantee the safety of minors online and reaffirms the authorities’ commitment to ensuring that large technology companies comply with current laws in U.S. territory.
Context of regulatory pressure and corporate restructuring
This legal process is taking place in a scenario of constant scrutiny over digital platforms. Previously, the U.S. government pushed for a measure requiring ByteDance, the original parent company based in China, to sell its subsidiary in the country due to concerns regarding national security and the handling of U.S. citizens’ data.
Following a series of negotiations and the intervention of the Supreme Court, a new ownership structure was finalized. Last March, a transaction was closed in which a group of national and international investors assumed control of the U.S. subsidiary, making a payment of 10 billion dollars to the State. Currently, ByteDance maintains a 20% stake in the capital, but without the ability to influence operational management or strategic decision-making for the platform in the United States.
Authorities have made it clear that, despite the structural changes, TikTok will remain under strict observation. The protection of digital data and the safety of minors remain priority axes on the country’s regulatory agenda, with the goal of preventing future irregularities in the social media ecosystem.
