YouTube had been accused of tracking viewers of children's channels using cookies without parental consent and using those cookies to target million of dollars in advertisements to those viewers.

The settlement with the FTC and the New York attorney general's office, which will receive $34 million, is the largest since a law banning collecting information about children under age 13 came into effect in 1998. The law was revised in 2013 to include "cookies," used to track a person's internet viewing habits.

It is also small compared with the company's revenues. Alphabet, which generates about 85% of its revenue from sales of ad space and ad technology, in July reported total second-quarter revenue of $38.9 billion.