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Judge May Reject TikTok Privacy Settlement
Developing
In Short: A federal judge in Los Angeles is considering rejecting part of TikTok's proposed $400 million settlement with the U.S. government over privacy violations.
A federal judge in Los Angeles indicated on Friday that he is inclined to reject TikTok's request to terminate a 2019 consent decree imposed on the platform's predecessor, Musical.ly, according to Tekedia.
The latest dispute highlights the ongoing importance of the decree to the Justice Department's case against TikTok and ByteDance for violating U.S. children’s online privacy laws.
The government has accused TikTok and ByteDance of collecting personal information from users under 13 without the required parental consent.
In response, TikTok and ByteDance have argued that the platform has undergone significant changes since the lawsuit was filed, including alterations to its ownership structure, management, compliance operations, and privacy practices.
The privacy case is part of a broader effort by ByteDance to restructure TikTok’s U.S. operations and address Washington’s concerns over the platform’s ownership and handling of American user data.
Under the proposed settlement reached in August, TikTok agreed to pay $300 million immediately and another $100 million if the court terminated the 2019 consent decree.
However, the judge's indication to reject the termination of the consent decree puts a significant component of the agreement in doubt and could complicate TikTok’s efforts to resolve allegations of mishandling children’s personal information.
What's still developing
- The ruling does not, on its face, reject the entire $400 million settlement.
- The decree dates back to Musical.ly, the short-video platform that was later folded into TikTok.
Sources
- Tekedialink