TikTok reached a $400 million settlement with the Justice Department over allegations it illegally collected children's data. The 2024 suit claimed TikTok gathered information from users under 13 without parental consent and failed to delete accounts upon request.

Under the settlement, TikTok will pay $300 million, with an additional $100 million due if the court eliminates a 2019 privacy agreement. Associate Attorney General Stanley E. Woodward Jr. called it a "major victory for American children and parents."

The deal marks another win for TikTok under the Trump administration, which has taken a softer stance on tech litigation. The Justice Department recently settled cases against Live Nation and allowed Hewlett Packard Enterprise's acquisition of Juniper Networks. Trump previously tried to force ByteDance to sell TikTok, but delayed enforcement of a 2024 ban law after returning to office.

In January, ByteDance spun off U.S. operations to non-Chinese investors. A TikTok spokeswoman did not immediately comment.