TikTok has reached a settlement with the state of Alabama for at least $100 million, according to reports. The company faces intense scrutiny over its handling of user data and concerns that it misled consumers about the safety of its short-form video platform. The lawsuit alleged that TikTok was designed to be addictive and manipulative, using tactics such as algorithmic feed creation and artificial intelligence-driven "duet" features.
The settlement comes after a long-running investigation by Alabama's Attorney General Jeff Sessions into allegations that TikTok had failed to protect users from online predators and cyberbullying. The company initially refused to comment on the lawsuit but later issued a statement acknowledging its role in the alleged misdeeds.
TikTok has taken steps to address some of the concerns raised by lawmakers, including hiring more moderators and implementing measures to prevent minors from accessing its platform. However, the company still faces intense criticism for its handling of user data and potential links to online abuse. The settlement is seen as a major victory for Alabama's Attorney General Jeff Sessions, who had long campaigned against social media companies that allegedly enabled predators and cyberbullies.