TikTok and its parent company, ByteDance, have agreed to pay US$400 million, about A$559 million, to settle a US government lawsuit over alleged violations of children’s online privacy.

The case centres on claims that TikTok collected and retained personal information from children under 13 without obtaining the required permission from their parents. US authorities also alleged that information was collected through accounts intended for younger users.

The settlement is being described as one of the largest recoveries involving the United States’ Children’s Online Privacy Protection Act, known as COPPA. The law restricts websites and online services from collecting personal information from children under 13 without parental consent.

However, the settlement comes amid a much broader global debate about how social media platforms protect young users.

European regulators have raised concerns about TikTok’s default account settings and whether they provide enough protection against risks such as cyberbullying and predatory behaviour.

In the United Kingdom, communications regulator Ofcom is investigating TikTok’s age-verification system and whether the platform is doing enough to protect children from harmful content.

Australia has taken an even stronger position. Since December 2025, major social media platforms have been required to prevent children under 16 from holding accounts, with companies potentially facing significant fines if they fail to take reasonable steps to enforce the restrictions.

Other countries, including Canada and Indonesia, are also moving towards tighter controls.

The developments reflect a significant shift in the relationship between governments and Big Tech. Social media companies are increasingly being expected to take responsibility not only for what appears on their platforms, but also for how their products are designed and how young users interact with them.

For TikTok, the US$400 million settlement is therefore more than a financial penalty. It is another warning that governments are becoming increasingly willing to hold technology companies accountable for protecting children’s privacy and safety online.

The message is clear: when it comes to children online, safety is becoming a responsibility that Big Tech can no longer treat as optional.