TikTok and ByteDance’s proposed $400 million settlement with the U.S. Justice Department faces a legal obstacle after U.S. District Judge George H. Wu indicated he was inclined to reject a request to terminate a 2019 consent decree covering TikTok’s predecessor, Musical.ly. The agreement would require TikTok to pay $300 million immediately and another $100 million if the decree is terminated. The Federal Trade Commission imposed the decree after alleging Musical.ly collected children’s personal information without parental consent, while its reporting and record-keeping obligations continue through 2029. The Justice Department’s 2024 lawsuit accused TikTok and ByteDance of violating U.S. children’s online privacy law. The companies pointed to changes in ownership, management, compliance operations and privacy practices, as well as a planned majority American-owned U.S. joint venture and strengthened age-moderation measures.