U.S. District Judge George H. Wu issued a tentative ruling that blocks a $100 million portion of TikTok's $400 million privacy settlement with the U.S. Department of Justice. The settlement, reached in August to resolve child‑privacy allegations, includes $300 million that TikTok will pay regardless of other actions and $100 million contingent on the dismissal of an earlier consent decree.
Judge Wu rejected the government's request to vacate the consent decree originally imposed on Musical.ly, TikTok's predecessor, stating that neither TikTok nor the Justice Department demonstrated that the protections for users under 13 were no longer needed. He noted that changes in ownership, compliance steps and the new settlement did not prove substantial compliance with the existing order.
The judge retained oversight of TikTok's privacy practices and scheduled a hearing on the government's dismissal request for Sept. 21. The settlement follows a January deal finalized under the Trump administration that transferred parts of TikTok's U.S. operations to American investors.
Both TikTok and the Justice Department declined to comment to Bloomberg.
