Judge signals likely rejection of part of TikTok settlement
TikTok and ByteDance's proposed $400 million settlement with the U.S. Justice Department has hit a legal hurdle after a federal judge in Los Angeles said he was inclined to reject part of the agreement, specifically the bid to terminate a 2019 FTC consent decree tied to Musical.ly. Under the deal, TikTok would pay $300 million immediately and a further $100 million only if the court ended the decree, which requires reporting and record-keeping through 2029. The Justice Department sued in 2024 over alleged illegal collection of children's data, and TikTok has pointed to ownership, management and age-moderation changes and a planned U.S. joint venture.
Judge likely to refuse ending 2019 consent decree
Context
The Justice Department sued TikTok in 2024 over children's data. The companies proposed a $400 million settlement in August. A judge scheduled a hearing and may keep the 2019 consent decree in place.
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