The Ministry said that TikTok will pay $300 million immediately, with an additional $100 million to be paid after a court decision is issued to revoke an earlier approval decree imposed on “Musically,” which preceded “TikTok.”

The Department of Justice described the settlement as one of the largest amounts ever recovered in a case involving the Children’s Online Privacy Protection Act (COPPA).

The settlement does not include an admission by TikTok or ByteDance that they committed any violations, nor has there been a judicial finding establishing their liability for the allegations contained in the lawsuit.

Accounts for children under 13 years old

The case dates back to a lawsuit filed by the Department of Justice in 2024, during the administration of former President Joe Biden, after it was referred to them from the Federal Trade Commission.

US authorities accused the platform of allowing children under the age of 13 to create accounts and use the app, collect their personal information, and retain it without obtaining parental consent.

The lawsuit also included accusations that some children’s accounts and data were not deleted despite receiving requests from parents or knowing that the account holders had not reached the legal age.

The US government believed that these practices, if proven, violate COPPA, which requires digital services to obtain parental consent before collecting data from children under 13 years old.

Online platforms in the United States typically set a minimum age of 13 for creating accounts due to these rules, but children can sometimes bypass restrictions by entering incorrect birthdates.

Changes in Ownership and Privacy

The Department of Justice stated that since the lawsuit was filed, TikTok has undergone significant changes in its ownership structure, management, compliance functions, and privacy protection practices.

It added that the company has taken steps to enhance protections for younger users, improve age verification controls, and expand parental control tools.

The department noted that these changes have strengthened protections for millions of American families and contributed to reaching a settlement without waiting for the outcome of a lengthy legal dispute.

The settlement came after a change in ownership of TikTok’s business in the United States, with the majority stake moving to a new company backed by American investors at the beginning of 2026, as part of a deal pushed through by President Donald Trump.

The deal ensured the app's continued operation in the United States after nearly a year of uncertainty, as U.S. law required ByteDance to liquidate its U.S. operations to avoid banning the platform.

Despite changing its business structure in the American market, ByteDance, based in China, still controls TikTok’s operations worldwide.