TikTok to pay Alabama $116 million under settlement — Anadolu Agency

TikTok has reached a settlement with the attorney general of the U.S. state of Alabama over a lawsuit accusing the platform of harming young users through a design that fostered addiction. As Anadolu Agency reports, citing the Alabama Reflector, the company will pay the state $116 million in compensation.

Terms of the settlement

According to the outlet, a Montgomery County Circuit Court judge approved the settlement through a court ruling. TikTok must also create a separate $183 million fund, the use of which will depend on whether other states join similar settlements.

The settlement provides for blocking teenagers’ access to the app from midnight to 6:00 a.m. Daily usage time will be limited by default to two hours, while parents will receive tools to monitor and restrict their children’s accounts. TikTok did not admit wrongdoing.

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Alabama’s lawsuit

Alabama filed the lawsuit in April 2025. The state claimed that TikTok’s algorithm showed children harmful content, including content related to drugs, self-harm and eating disorders, and kept them on the app for advertising purposes.

TikTok sought to have the case dismissed, citing online platforms’ legal immunity and arguments concerning privacy laws. Attorney General Steve Marshall called the outcome a great day for families and said parents would gain real control over app use. TikTok stated that the settlement is consistent with the company’s goal of continuously improving safety tools to protect teenagers.