TikTok and ByteDance’s proposed $400 million settlement with the US Justice Department faces a setback after US 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 ended. The Federal Trade Commission (FTC) imposed the decree after alleging Musical.ly collected children’s personal information without parental consent; its reporting and record-keeping obligations run through 2029. The Justice Department’s 2024 lawsuit accused TikTok and ByteDance of violating US children’s online privacy law. The companies argued that significant changes to ownership, management, compliance and privacy practices supported the settlement. A majority American-owned US joint venture was established in January to protect US user data and avert a potential ban, while the venture says it has strengthened age-verification and moderation measures.