A federal judge in Los Angeles isn't ready to let TikTok off the hook for under-13 privacy obligations. In a tentative decision, Judge George H. Wu said he would not vacate the order that originated with Musical.ly, the app ByteDance bought and evolved into TikTok. He wrote, "The Government has not shown that the changes in TikTok's ownership, the changes to the platform's compliance measures, or the recent settlement warrant termination" of that earlier order. Translation: for now, court oversight remains.
ByteDance acquired Musical.ly and built it into TikTok, which Washington has scrutinized across both the Trump and Biden administrations because of its Chinese ownership. In January, the Trump administration and ByteDance completed a deal that shifted portions of the U.S. business to American investors, and that step seemed to ease tensions. Later, in August, the sides finalized a $400 million deal addressing privacy accusations originally brought by the Biden administration.
But $100 million of that amount hinges on the old consent decree being lifted, and the judge isn't convinced it should be. The Justice Department and TikTok didn't respond to after-hours requests for comment.
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Wu also wrote, "These developments, at least as put forth in the Government's papers, do not establish substantial compliance with the Order or demonstrate that its prospective protections are no longer necessary," signaling continued scrutiny of TikTok's handling of younger users. The court will take up the bid to dismiss the consent decree on Sept. 21. If the order stays in place, expect tighter guardrails on how TikTok operates in the U.S., which could shape user growth, ad demand, and the broader creator economy that everyday investors increasingly have exposure to through tech and media names.
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