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Photo by Thomas Trutschel/Photothek via Getty Images

TikTok, a short-form video app owned by Chinese tech giant Bytedance, has agreed to a $5.7 million settlement with the U.S. Federal Trade Commission for illegally collecting personal data from children.

Why it matters: It's the largest settlement from a violation of The Children's Online Privacy Protection Act (COPPA) in the law's 20+ year history. While $5.7 million may seem small, it's significantly larger than the next biggest COPPA violation, which resulted in a $3 million settlement by Disney-owned social games studio Playdom in 2011.

Details: The complaint, filed to the FTC by the U.S. Justice Department, alleges that Musical.ly (a karaoke app that was acquired and integrated by TikTok's parent company in 2017) obtained the personal information of children under 13 years old without consent.

  • "This ruling underscores what we have long known: Companies like TikTok do not consider children’s personal information out of bounds," said Sen. Ed Markey (D-Mass.), an author of COPPA. "This fine may be an historic high for a COPPA violation, but it is not high enough for the harm that is done to children."
  • In response to the settlement, TikTok said it updated its app to include additional safety and privacy protections designed specifically for younger U.S. users.

Be smart: TikTok has built a mobile empire and is beginning to compete with the likes of Facebook for the attention of young users.

  • A new report from Digiday finds that TikTok's U.S. user base has grown to 26.5
    million monthly active users, who on average open the app 8 times for a total of 46 minutes per day.
  • New figures from data insights firm SensorTower suggest that TikTok has surpassed 1 billion downloads on iOS and Android.

Our thought bubble: While conversations around children's privacy have increased over the past year alongside the national privacy debate, this case will certainly draw even more attention to the way tech giants mine data through apps targeted to kids.

Go deeper

15 mins ago - Health

Moderna to file for FDA emergency use authorization for COVID-19 vaccine

Photo illustration by STR/NurPhoto via Getty Images

Moderna announced that it plans to file with the FDA Monday for an emergency use authorization for its coronavirus vaccine, which the company said has an efficacy rate of 94.1%.

Why it matters: Moderna will become the second company to file for a vaccine EUA after Pfizer did the same earlier this month, potentially paving the way for the U.S. to have two COVID-19 vaccines in distribution by the end of the year. The company said its vaccine has a 100% efficacy rate against severe COVID cases.

The social media addiction bubble

Illustration: Annelise Capossela/Axios

Right now, everyone from Senate leaders to the makers of Netflix's popular "Social Dilemma" is promoting the idea that Facebook is addictive.

Yes, but: Human beings have raised fears about the addictive nature of every new media technology since the 18th century brought us the novel, yet the species has always seemed to recover its balance once the initial infatuation wears off.

Young people's next big COVID test

Illustration: Eniola Odetunde/Axios

Young, healthy people will be at the back of the line for coronavirus vaccines, and they'll have to maintain their sense of urgency as they wait their turn — otherwise, vaccinations won't be as effective in bringing the pandemic to a close.

The big picture: "It’s great young people are anticipating the vaccine," said Jewel Mullen, associate dean for health equity at the University of Texas. But the prospect of that enthusiasm waning is "a cause for concern," she said.