Judge Refuses to Lift TikTok Privacy Oversight Decree

A federal judge in Los Angeles has tentatively refused to vacate a 2019 consent decree imposed on Musical.ly, the app acquired by ByteDance and rebranded as TikTok. Judge George H. Wu ruled that neither the company nor the U.S. government proved that the privacy obligations established in the original order had been obviated.

The ruling affects a $400 million settlement announced by the Justice Department in August to resolve a children's privacy case. While $300 million of that settlement is paid immediately, the remaining $100 million is contingent upon the court vacating the 2019 decree. If this tentative ruling becomes final, the government will collect $100 million less than the total settlement amount.

TikTok will remain under judicial oversight regarding its privacy practices. This includes ongoing requirements to remove videos created by users under 13 and to destroy improperly collected data. The original 2019 decree stemmed from a $5.7 million settlement between the Federal Trade Commission and Musical.ly.