TikTok and its parent company ByteDance have reached a settlement with Alabama over allegations concerning the platform’s impact on young users, days before a trial was scheduled to begin. The agreement marks TikTok’s first settlement with a US state in the series of similar cases being pursued across the country.
Under the agreement, Alabama will receive at least $100 million within 45 days. The amount could rise to $300 million if certain conditions are met, according to the state’s attorney general’s office.
TikTok has also agreed to changes including a two hour daily usage limit, breaks after 15 minutes of use and stronger age verification measures. The settlement means the planned trial in Montgomery state court will not proceed as scheduled. TikTok has maintained that protecting teenagers is a priority and has disputed the allegations made against it.