U.S. agreement with TikTok threatened

A federal judge has made it clear that he will reject part of TikTok and ByteDance’s $400 million deal with the U.S. Department of Justice. Reuters reports.

In August, the companies agreed to settle charges of violating child privacy laws. TikTok agreed to pay $300 million immediately and another $100 million if the court overturns the 2019 ruling.

However, Judge George Wu in Los Angeles said he was inclined to reject a request to terminate the settlement agreement. A hearing is scheduled for Monday.

In 2019, the FTC said Musical.ly was aware of the app's use by children but did not obtain parental consent. The company paid a fine of $5.7 million. Under the terms of the agreement, TikTok is obliged to fulfill its reporting obligations until 2029.

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