TikTok and its Chinese parent company ByteDance have agreed to pay USD $400 million to settle a US government lawsuit alleging the platform unlawfully collected and retained personal information belonging to children.
The settlement, announced by the US Department of Justice on Friday, brings the case to an end without a trial and without a finding that TikTok or ByteDance was legally liable for the alleged conduct.
The Justice Department and Federal Trade Commission launched the case in 2024 during the Biden administration, accusing TikTok of knowingly permitting millions of children under 13 to establish standard accounts while gathering their personal information without obtaining parental consent.
Authorities also alleged the platform repeatedly failed to remove children’s accounts and associated information after parents requested their deletion.
The settlement comes amid a significant shift in Washington’s approach towards TikTok under President Donald Trump.
During his first presidency, Trump sought to force the Chinese-owned platform out of the US unless ByteDance surrendered control of its American operations. His position changed during the 2024 presidential campaign, when he argued that banning TikTok would hand a commercial advantage to rival Meta.
“If you get rid of TikTok, Facebook and Zuckerschmuck will double their business,” Trump wrote on Truth Social in March 2024, referring to Meta chief executive Mark Zuckerberg.
The language used by the Justice Department in announcing the settlement also marks a departure from its position when proceedings began. In 2024, officials labelled TikTok and ByteDance “repeat offenders” and alleged violations occurring “on a massive scale”.
In announcing Friday’s resolution, however, the department pointed to “significant changes” involving TikTok’s ownership, management, privacy protections and compliance arrangements.
Since returning to the White House, Trump has repeatedly acted to prevent TikTok being removed from the American market under legislation requiring ByteDance to divest its US operations or face a ban.
Enforcement was postponed several times while a restructuring agreement was negotiated. The administration ultimately supported a new US-based joint venture, majority controlled by American investors, allowing TikTok to continue operating in the country.
Those delays attracted controversy because the 2024 divest-or-ban legislation provided for a single extension of up to 90 days under specified circumstances, while Trump repeatedly instructed the Justice Department not to enforce the prohibition.
Image credit: Solen Feyissa
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Oracle, Andreessen Horowitz, More Will Hold Controlling Stake In TikTok Deal, Report Says
An investor group headlined by Larry Ellison’s Oracle, the private equity Silver Lake and Marc Andreessen’s venture capital firm will hold a controlling stake in TikTok’s new U.S. business, the Wall Street Journal reported Tuesday, as President Donald Trump claimed a deal was struck to keep the China-based app online nationwide
https://www.forbes.com/sites/tylerroush/2025/09/16/oracle-andreesen-horowitz-more-will-hold-controlling-stake-in-tiktok-deal-report-say/