Frank McCourt, a US real estate billionaire, aims to acquire TikTok to combat the negative influence of major tech platforms on society. Known for owning the Los Angeles Dodgers and Olympique de Marseille, McCourt has been vocal about the harm these platforms inflict, particularly on children. Speaking at the Collision tech conference in Toronto, he emphasised the manipulative nature of social media algorithms, linking them to societal chaos and political polarisation.
McCourt’s concern stems from the detrimental impact of social media on mental health, especially among children, citing rising anxiety, depression, and youth suicides. His solution is a ‘new internet’ based on an open-source, decentralised protocol where users control their own data, a vision he calls Project Liberty. With its vast user base of young people, acquiring TikTok would significantly advance this initiative. Project Liberty has garnered support from internet pioneer Tim Berners-Lee and NYU professor Jonathan Haidt.
The acquisition bid comes amid US government pressures on TikTok to divest from Chinese ownership due to national security concerns. While the future of TikTok’s ownership remains uncertain, McCourt hopes this situation will raise awareness about data privacy issues across all platforms, emphasising the need for user control over personal data to preserve democratic values.
TikTok will be sued again by the US Department of Justice (DoJ) in a consumer protection lawsuit against ByteDance’s TikTok later this year, focusing on alleged children’s privacy violations. The incentive for the legal move comes on behalf of the Federal Trade Commission (FTC), but the DoJ will not pursue allegations that TikTok misled US consumers about data security, specifically dropping claims that the company failed to inform users that China-based employees could access their personal and financial information.
The decision suggests that the primary focus will now be on how TikTok handles children’s privacy. The FTC had referred to the DoJ a complaint against TikTok and its parent, ByteDance, concerning potential violations of children’s privacy, stating that it investigated TikTok and found evidence suggesting they may be breaking the Children’s Online Privacy Protection Act. The federal act requires apps and websites aimed at kids to get parental consent before collecting personal information from children under 13.
The US Federal Trade Commission (FTC) has referred a complaint against TikTok and its parent company, ByteDance, to the Justice Department over potential violations of children’s privacy. The move follows an investigation that suggested the companies might be breaking the law and deemed it in the public interest to proceed with the complaint. The following investigation stems from allegations that TikTok failed to comply with a 2019 agreement to safeguard children’s privacy.
TikTok has been discussing with the FTC for over a year to address the agency’s concerns. The company expressed disappointment over the FTC’s decision to pursue litigation rather than continue negotiations, arguing that many of the FTC’s allegations are outdated or incorrect. TikTok remains committed to resolving the issues and believes it has already addressed many concerns.
Separately, TikTok is facing scrutiny from US Congress regarding the potential misuse of data from its 170 million US users by the Chinese government, a claim TikTok denies. Additionally, TikTok is preparing to file a legal brief challenging a recent law that mandates its parent company, ByteDance, to divest TikTok’s US assets by 19 January or face a ban.
US Surgeon General Vivek Murthy has called for a warning label on social media apps to highlight the harm these platforms can cause young people, particularly adolescents. In a New York Times op-ed, Murthy emphasised that while a warning label alone won’t make social media safe, it can raise awareness and influence behaviour, similar to tobacco warning labels. The proposal requires legislative approval from Congress. Social media platforms like Facebook, Instagram, TikTok, and Snapchat have faced longstanding criticism for their negative impact on youth, including shortened attention spans, negative body image, and vulnerability to online predators and bullies.
Murthy’s proposal comes amid increasing efforts by youth advocates and lawmakers to protect children from social media’s harmful effects. US senators grilled CEOs of major social media companies, accusing them of failing to protect young users from dangers such as sexual predators. States are also taking action; New York recently passed legislation requiring parental consent for users under 18 to access ‘addictive’ algorithmic content, and Florida has banned children under 14 from social media platforms while requiring parental consent for 14- and 15-year-olds.
Despite these growing concerns and legislative efforts, major social media companies have not publicly responded to Murthy’s call for warning labels. The push for such labels is part of broader initiatives to mitigate the mental health risks associated with social media use among adolescents, aiming to reduce issues like anxiety and depression linked to these platforms.
Between April 26 and May 25, Elon Musk’s X Corp banned 229,925 accounts in India, primarily for promoting child sexual exploitation and non-consensual nudity. Additionally, 967 accounts were removed for promoting terrorism, bringing the total to 230,892 banned accounts during this period. In compliance with the new IT Rules, 2021, X Corp’s monthly report noted receiving 17,580 user complaints in India. The company processed 76 grievances appealing account suspensions but upheld all suspensions after review.
The report also mentioned 31 general account-related inquiries. Most user complaints involved ban evasion (6,881), hateful conduct (3,763), sensitive adult content (3,205), and abuse/harassment (2,815). Previously, between March 26 and April 25, X banned 184,241 accounts in India and removed 1,303 for promoting terrorism.
Why does it matter?
India, with nearly 700 million internet users, has introduced new regulations for social media, streaming services, and digital news outlets. These rules mandate firms to enable traceability of encrypted messages, establish local offices with senior officials, comply with takedown requests within 24 hours, resolve grievances within 15 days, and publish a monthly compliance report detailing received requests and actions taken.
New York state lawmakers have passed new legislation to restrict social media platforms from showing ‘addictive’ algorithmic content to users under 18 without parental consent. The measure to implement aims to mitigate online risks to children, making New York the latest state to take such action. A companion bill was also passed, which limits online sites from collecting and selling the personal data of minors.
Governor Kathy Hochul is expected to sign both bills into law, calling them a significant step toward addressing the youth mental health crisis and ensuring a safer digital environment. The legislation could impact revenues for social media companies like Meta, which generated significant income from advertising to minors.
While industry associations have criticised the bills as unconstitutional and an assault on free speech, proponents argue that the measures are necessary to protect adolescents from mental health issues linked to excessive social media use. The SAFE (Stop Addictive Feeds Exploitation) for Kids Act will require parental consent for minors to view algorithm-driven content instead of providing a chronological feed of followed accounts and popular content.
The New York Child Data Protection Act, the companion bill, will bar online sites from collecting, using, or selling the personal data of minors without informed consent. Violations could result in significant penalties, adding a layer of protection for young internet users.
The first complaint alleges that Microsoft’s contracts with schools attempt to shift responsibility for GDPR compliance onto them despite schools lacking the capacity to monitor or enforce Microsoft’s data practices. That could result in children’s data being processed in ways that do not comply with GDPR. The second complaint highlights the use of tracking cookies within Microsoft 365 Education software, which reportedly collects user browsing data and analyses user behaviour, potentially for advertising purposes.
NOYB claims that such tracking practices occur without users’ consent or the schools’ knowledge, and there appears to be no legal justification for it under GDPR. They request that the Austrian Data Protection Authority investigate the complaints and determine the extent of data processing by Microsoft 365 Education. The group has also urged the authority to impose fines if GDPR violations are confirmed.
Microsoft has not yet responded to the complaints. Still, the company has stated that its 365 for Education complies with GDPR and other applicable privacy laws and that it thoroughly protects the privacy of its young users.
New York lawmakers are preparing to ban social media companies from using algorithms to control content seen by youth without parental consent. The legal initiative, expected to be voted on this week, aims to protect minors from automated feeds and notifications during overnight hours unless parents approve. The move comes as social media platforms face increasing scrutiny for their addictive nature and impact on young people’s mental health.
Earlier this year, New York City Mayor Eric Adams announced a lawsuit against major social media companies, including Facebook and Instagram, for allegedly contributing to a mental health crisis among youth. Similar actions have been taken by other states, with Florida recently passing a law requiring parental consent for minors aged 14 and 15 to use social media and banning those under 14 from accessing these platforms.
Why does it matter?
The trend started with Utah, which became the first state to regulate children’s social media access last year. States like Arkansas, Louisiana, Ohio, and Texas have since followed suit. The heightened regulation is affecting social media companies, with shares of Meta and Snap seeing a slight decline in extended trading.
X, formerly known as Twitter, has officially updated its rules to allow the posting of adult and graphic content. Users can now share consensually produced NSFW (not safe for work) content, including AI-generated images and videos, provided they are clearly labelled. This change is a formal acknowledgement of practices that have existed unofficially for years, especially under the platform’s current ownership by Elon Musk, who has been exploring ways to host and potentially monetise adult content.
The new guidelines emphasise that while adult content is permitted, it must be consensually produced and appropriately labelled to prevent unintended exposure, particularly to minors. X continues to prohibit excessively gory content and any depiction of sexual violence, aligning with its existing violent content policies. The platform also requires users to mark posts containing sensitive media, ensuring that such content is only visible to those over 18 who have provided birthdates.
This move opens the door for X to potentially develop services around adult content, possibly positioning itself as a competitor to platforms like OnlyFans. The prevalence of adult content on X has been significant, with about 13% of posts in 2022 containing such material, a figure that has likely increased with the proliferation of porn bots. Regulatory bodies will closely monitor X’s efforts to manage and eliminate non-consensual porn and child sexual abuse material (CSAM), especially following past fines and warnings from countries like Australia and India.
A Wisconsin man, Steven Anderegg, has been charged by the FBI for creating over 10,000 sexually explicit and abusive images of children using AI. The 42-year-old allegedly used the popular AI tool Stable Diffusion to generate around 13,000 hyper-realistic images depicting prepubescent children in disturbing and explicit scenarios. Authorities discovered these images on his laptop following a tip-off from the National Center for Missing & Exploited Children (NCMEC), which had flagged his Instagram activity.
Anderegg’s charges include creating, distributing, and possessing child sexual abuse material (CSAM), as well as sending explicit content to a minor. If convicted, he faces up to 70 years in prison. The following case marks one of the first instances where the FBI has charged someone for generating AI-created child abuse material. The rise in such cases has prompted significant concern among child safety advocates and AI researchers, who warn of the increasing potential for AI to facilitate the creation of harmful content.
Reports of online child abuse have surged, partly due to the proliferation of AI-generated material. In 2023, the NCMEC noted a 12% increase in flagged incidents, straining their resources. The Department of Justice has reaffirmed its commitment to prosecuting those who exploit AI to create CSAM, emphasising that AI-generated explicit content is equally punishable under the law.
Stable Diffusion, an open-source AI model, has been identified as a tool used to generate such material. Stability AI, the company behind its development, has stated that the model used by Anderegg was an earlier version created by another startup, RunwayML. Stability AI asserts that it has since implemented stronger safeguards to prevent misuse and prohibits creating illegal content with its tools.
