Kathmandu— TikTok and its parent company, ByteDance, have reached a $400 million settlement with the U.S. government to resolve a lawsuit alleging the platform unlawfully collected personal data from children under 13 without parental consent. The agreement, announced by the Department of Justice on Friday, avoids a trial and any formal determination of liability. The case, initially filed in 2024 during the Biden administration, centered on accusations that TikTok knowingly allowed millions of underage users to create accounts and failed to adequately delete their data when requested. This resolution follows a significant shift in stance from former President Donald Trump, who previously sought to ban the platform.

Shifting Political Landscape

The implementation of the 2024 law faced repeated delays, as Trump directed the Justice Department not to enforce it while negotiations for restructuring continued. The law initially permitted a single extension of up to 90 days under specific conditions, but these were repeatedly bypassed through presidential intervention.

The $400 million settlement concludes the government’s lawsuit against TikTok and ByteDance, allowing the platform to continue operating in the United States with new ownership structures.

(With inputs from RT)

Originally published on abcnews.com.np.