TikTok and its Chinese parent company, ByteDance, have agreed to pay $400 million to settle allegations that the popular video-sharing platform violated US laws designed to protect children's online privacy.

The US Justice Department announced that TikTok will pay $300 million immediately, followed by an additional $100 million once a previous consent decree involving TikTok's predecessor, Musical.ly, is formally vacated. Officials described the agreement as one of the largest financial recoveries ever obtained in a case involving the Children's Online Privacy Protection Act (COPPA).

The Justice Department and the Federal Trade Commission filed a lawsuit against TikTok and ByteDance in 2024. The agencies accused the companies of knowingly allowing children to use the platform and collecting personal information from young users without obtaining the legally required consent from their parents.

According to the Justice Department, TikTok has made significant changes to its ownership, management, compliance systems and privacy practices since the lawsuit was filed.

The settlement comes at a time when TikTok is facing growing scrutiny from governments and regulators around the world. ByteDance recently sold a majority stake in its US entity as part of efforts to avoid a potential ban by the Trump administration.

TikTok is also under pressure in Europe. The European Union has investigated the platform under the Digital Services Act, while regulators have raised concerns that some account settings may expose children to risks such as unwanted contact, cyberbullying and predatory behaviour.

Meanwhile, the United Kingdom has launched its own investigation into whether TikTok is doing enough to protect children from harmful online content.