TIKTOK and its parent company, ByteDance, have reached a $400 million settlement with the U.S. Department of Justice over allegations of violations of the Children's Online Privacy Protection Act (COPPA). The lawsuit, originating in 2024, accused TikTok of allowing children under 13 to create accounts, illegally collecting personal data from users in 'Kids Mode,' and ignoring parental requests for data deletion.
As part of the settlement, TikTok has made significant internal changes, including restructuring its U.S. operations under the TikTok USDS Joint Venture, which has shared control with external investors like Oracle. The settlement is seen as a strategic move for TikTok to stabilize its operations in the U.S. market amidst political scrutiny.