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Nexon investigates AI-generated TikTok ads for The First Descendant

Nexon launched an investigation after players spotted several suspicious adverts for The First Descendant on TikTok that appeared to have been generated by AI.

One advertisement allegedly used a content creator’s likeness without permission, sparking concerns about the misuse of digital identities.

The company issued a statement acknowledging ‘irregularities’ in its TikTok Creative Challenge, a campaign that lets creators voluntarily submit content for advertising.

While Nexon confirmed that all videos had been verified through TikTok’s system, it admitted that some submissions may have been produced in inappropriate circumstances.

Nexon apologised for the delay in informing players, saying the review took longer than expected. It confirmed that a joint investigation with TikTok is underway to determine what happened, and it was promised that updates would be provided once the process is complete.

The developer has not yet addressed the allegation from creator DanieltheDemon, who claims his likeness was used without consent.

The controversy has added to ongoing debates about AI’s role in advertising and protecting creators’ rights.

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TikTok adopts crowd‑sourced verification tool to combat misinformation

TikTok has rolled out Footnotes in the United States, its crowd‑sourced debunking initiative to supplement existing misinformation controls.

Vetted contributors will write and rate explanatory notes beneath videos flagged as misleading or ambiguous. If a note earns broad support, it becomes visible to all US users.

The system uses a ‘bridging‑based’ ranking framework to encourage agreement between users with differing viewpoints, making the process more robust and reducing partisan bias. Initially launched as a pilot, the platform has already enlisted nearly 80,000 eligible US users.

Footnotes complements TikTok’s integrity setup, including automated detection, human moderation, and partnerships with fact‑checking groups like AFP. Platform leaders note that effectiveness improves as contributors engage more across various topics.

Past research shows comparable crowd‑sourced systems often struggle to publish most submissions, with fewer than 10% of Notes appearing publicly on other platforms. Concerns remain over the system’s scalability and potential misuse.

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OpenAI and Shopify explore product sales via ChatGPT

OpenAI is preparing to take a commission from product sales made directly through ChatGPT, signalling a significant shift in its business model. The move aims to monetise free users by embedding e-commerce checkout within the chatbot.

Currently, ChatGPT provides product links that redirect users to external sites. In April, OpenAI partnered with Shopify to support this feature. Sources say the next step is enabling purchases without leaving the platform, with merchants paying OpenAI a fee per transaction.

Until now, OpenAI has earned revenue mainly from ChatGPT Plus subscriptions and enterprise deals. Despite a $300 billion valuation, the company remains loss-making and seeks new commercial avenues tied to its conversational AI tools.

E-commerce integration would also challenge Google’s grip on product discovery and paid search, as more users turn to chatbots for recommendations.

Early prototypes have been shown to brands, and financial terms are under discussion. Shopify, which powers checkout on platforms like TikTok, may also provide the backend infrastructure for ChatGPT.

Product suggestions in ChatGPT are generated based on query relevance and user-specific context, including budgets and saved preferences. With memory upgrades, the chatbot can personalise results more effectively over time.

Currently, clicking on a product shows a list of sellers based on third-party data. Rankings rely mainly on metadata rather than price or delivery speed, though this is expected to evolve.

Marketers are already experimenting with ‘AIO’ — AI optimisation — to boost visibility in AI-generated product listings, similar to SEO for search engines.

An advertising agency executive said this shift could disrupt paid search and traditional ad models. Concerns are growing around how AI handles preferences and the fairness of its recommendations.

OpenAI has previously said it had ‘no active plans to pursue advertising’. However, CFO Sarah Friar recently confirmed that the company is open to ads in the future, using a selective approach.

CEO Sam Altman said OpenAI would not accept payments for preferential placement, but may charge small affiliate fees on purchases made through ChatGPT.

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TikTok struggles to stop the spread of hateful AI videos

Google’s Veo 3 video generator has enabled a new wave of racist AI content to spread across TikTok, despite both platforms having strict policies banning hate speech.

According to MediaMatters, several TikTok accounts have shared AI-generated videos promoting antisemitic and anti-Black stereotypes, many of which still circulated widely before being removed.

These short, highly realistic videos often included offensive depictions, and the visible ‘Veo’ watermark confirmed their origin from Google’s model.

While both TikTok and Google officially prohibit the creation and distribution of hateful material, enforcement has been patchy. TikTok claims to use both automated systems and human moderators, yet the overwhelming volume of uploads appears to have delayed action.

Although TikTok says it banned over half the accounts before MediaMatters’ findings were published, harmful videos still managed to reach large audiences.

Google also maintains a Prohibited Use Policy banning hate-driven content. However, Veo 3’s advanced realism and difficulty detecting coded prompts make it easier for users to bypass safeguards.

Testing by reporters suggests the model is more permissive than previous iterations, raising concerns about its ability to filter out offensive material before it is created.

With Google planning to integrate Veo 3 into YouTube Shorts, concerns are rising that harmful content may soon flood other platforms. TikTok and Google appear to lack the enforcement capacity to keep pace with the abuse of generative AI.

Despite strict rules on paper, both companies are struggling to prevent their technology from fuelling racist narratives at scale.

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TikTok denies buying Trump memecoins after bribe claims

TikTok has strongly denied accusations by US congressman Brad Sherman that its owners purchased $300 million worth of Trump meme coins. Responding via its official policy account on X, the company labelled the claims false and misleading.

Sherman alleged that the memecoin purchase was effectively a bribe to influence Donald Trump’s stance on banning TikTok in the US.

However, the accusations appear based on a report involving GD Culture Group, a Nasdaq-listed company with no direct connection to TikTok or its parent ByteDance.

GD Culture reportedly announced plans to buy Trump coins and Bitcoin while using TikTok to distribute AI-enhanced content. Despite this, no financial link between the firm and Trump or TikTok has been confirmed.

The timing of the claim coincides with Trump’s third delay in enforcing the TikTok ban, raising further political speculation. Sherman, a long-time crypto critic, also said that Trump’s crypto ventures threaten the US dollar’s dominance.

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TikTok ban delayed for the third time by Trump order

US President Donald Trump has announced a 90-day extension for TikTok’s Chinese parent company, ByteDance, to secure a US buyer, effectively postponing a nationwide ban of the popular video-sharing app. The move comes in the wake of a bipartisan law passed in 2024, requiring the platform to be sold to a non-Chinese entity due to national security concerns.

Trump is expected to formalise this decision with an executive order later this week, ensuring the platform remains available to its approximately 170 million American users. White House Press Secretary Karoline Leavitt emphasised that Trump is determined to keep TikTok operational, stating that the president ‘does not want TikTok to go dark.’

The latest extension follows a series of delays since Trump returned to office, including an initial 75-day grace period granted in January and an extension in April when no buyer had emerged. The situation remains unresolved despite optimism from Vice President JD Vance earlier this year that a deal would materialise in time.

President Trump has acknowledged that any sale would likely require Chinese government approval but expressed confidence in reaching a solution, citing a potentially cooperative stance from President Xi Jinping.

Interestingly, while Trump previously sought to ban TikTok during his first term, citing national security risks, he now appears to be more pragmatic. The president himself joined TikTok as a user just over a year ago, underscoring the app’s enduring popularity and the complex political and economic dynamics surrounding its future in the US.

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Meta and TikTok contest the EU’s compliance charges

Meta and TikTok have taken their fight against an the EU supervisory fee to Europe’s second-highest court, arguing that the charges are disproportionate and based on flawed calculations.

The fee, introduced under the Digital Services Act (DSA), requires major online platforms to pay 0.05% of their annual global net income to cover the European Commission’s oversight costs.

Meta questioned the Commission’s methodology, claiming the levy was based on the entire group’s revenue instead of the specific EU-based subsidiary.

The company’s lawyer told judges it still lacked clarity on how the fee was calculated, describing the process as opaque and inconsistent with the spirit of the law.

TikTok also criticised the charge, alleging inaccurate and discriminatory data inflated its payment.

Its legal team argued that user numbers were double-counted when people switched between devices. The Commission had wrongly calculated fees based on group profits rather than platform-specific earnings.

The Commission defended its approach, saying group resources should bear the cost when consolidated accounts are used. A ruling is expected from the General Court sometime next year.

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New London HQ marks TikTok’s UK growth

TikTok has announced plans to expand its UK operations significantly, adding over 500 new jobs and investing in a significant new office in London.

Despite ongoing scrutiny from Western governments over data security and alleged ties to the Chinese state, TikTok insists it invests heavily in trust and safety.

The company already employs 2,500 people in the country and will bring its UK workforce to 3,000 by the end of 2025.

The announcement coincides with London Tech Week, where Prime Minister Keir Starmer welcomed major global tech firms to showcase innovation and economic commitment.

TikTok’s UK director, Adam Presser, described the country as the platform’s largest user community in Europe, with over 30 million monthly users.

He emphasised that the company’s growth strategy includes commitments to digital safety and economic support for local creators and entrepreneurs.

Company leaders have reiterated that they aim to create a secure space while supporting the broader economy through innovation and job creation.

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DW Weekly #215 – Japan is boosting its cyberdefence, NATO shifts digital priorities, EU’s International Digital Strategy

30 May – 6 June 2025

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Dear readers,

Amid heightened cybersecurity tensions in East Asia, exemplified by China’s recent accusations against Taiwan for alleged cyberattacks and bounty offers targeting Taiwanese hackers, Japan is taking proactive steps to strengthen its cyberdefence capabilities. In May, the Japanese parliament approved a cyberdefence law, empowering authorities to monitor international communications through domestic infrastructure and neutralise overseas servers preemptively if they’re suspected of initiating cyberattacks. To complement these legislative measures, Japan is also formulating a comprehensive new cybersecurity strategy by the end of 2025, which will prioritise advanced encryption, proactive threat detection, and enhanced resilience of critical national infrastructure.

Cybersecurity policy strengthening is frequent these days, not only in Asia but also across the EU, as the UK and NATO bring important shifts in their cyberdefence strategies. The UK Ministry of Defence recently announced the establishment of a new Cyber and Electromagnetic Command aimed at integrating defensive cyber operations with offensive cyber and electronic warfare capabilities. Concurrently, NATO is considering formally incorporating cybersecurity into its defence spending guidelines, potentially including cyber capabilities within the alliance’s new 5% GDP target for defence expenditures.

Related to state security, another notable military development from the past week is the announcement that Chinese scientists have created the world’s first AI-based system capable of distinguishing real nuclear warheads from decoys, marking a significant breakthrough in arms control verification.

Cryptocurrencies continue to reshape Europe’s financial landscape, prompting varying responses from institutions across the continent. While the EU is actively advancing its ambitions for a digital euro, viewing it as a strategic tool to enhance the eurozone’s global currency influence and financial sovereignty, the Bank of Italy has expressed scepticism about current regulatory efforts. Specifically, Italy’s central bank criticised the Markets in Crypto-Assets (MiCA) regulation, pointing out its limited impact on boosting crypto adoption or effectively addressing consumer protection and market stability concerns.

The EU continues its legal battle with tech companies that do not comply with its digital market policies. Namely, the European Commission has imposed a €329 million fine on Berlin-based Delivery Hero and its Spanish subsidiary, Glovo, for participating in what it described as ‘a cartel’ in the online food delivery market.

A content policy correction initiative from France: TikTok has globally banned the hashtag ‘SkinnyTok’ after pressure from the French government, which accused the platform of promoting harmful eating habits among young users.

EU’s International Digital Strategy

On 5 June 2025, the European Commission and the High Representative unveiled a new International Digital Strategy for the EU, aiming to enhance the EU’s global tech competitiveness and security amid a rapidly evolving digital landscape. The strategy emphasises deepening existing Digital Partnerships and Dialogues, establishing new ones, and creating a Digital Partnership Network to foster collaboration on emerging technologies like AI, 5G/6G, semiconductors, and quantum computing, while promoting secure connectivity through initiatives like the Global Gateway. It also introduces an EU Tech Business Offer, a modular approach to combine technology solutions with capacity-building, supporting trusted partners in building secure digital infrastructure, such as submarine cables and AI Factories.

Prioritising cybersecurity, the EU plans to strengthen defences against cyber threats and Foreign Information Manipulation (FIMI) by enhancing resilience and promoting algorithmic transparency on online platforms. The strategy reaffirms the EU’s commitment to shaping global digital governance by advocating for human-centric standards in forums like the UN and G7, ensuring the digital transformation aligns with democratic values and fundamental rights.

Last week in Geneva

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In Geneva, the 113th Session of the International Labour Conference (ILC), convened by the International Labour Organisation (ILO), is currently taking place from 2 to 13 June 2025 at the Palais des Nations and ILO headquarters, where delegates are deliberating on pressing global labour issues.

On 5 June, the Giga Research Lab, in collaboration with Giga and the Geneva Innovation Movement, hosted a high-level event titled Bridging the Digital Divide: Cross-Sector Insights for Scaling School Connectivity. Held on Giga premises, the event welcomed invited guests for an exchange of ideas on expanding digital access in education.

On the same day, the International Telecommunications Union (ITU) held a webinar to launch the fourth edition of the landmark report, Greening Digital Companies: Monitoring Emissions and Climate Commitments 2025.

For the main updates, reflections and events, consult the RADAR, the READING CORNER and the UPCOMING EVENTS section below.

DW Team

RADAR

Highlights from the week of 30 May – 6 June 2025

EU launches global digital strategy

As the global race for digital dominance accelerates, the European Union is stepping forward with a bold strategy that blends technological ambition with a commitment to democratic values and international…

AI copyright clash stalls UK data bill

Peers warn the UK’s creative sector could suffer if AI firms are allowed to use copyrighted content without consent or fair compensation.

Colt, Honeywell and Nokia to trial quantum cryptography in space

Space-based cryptography aims to secure sensitive data from quantum threats.

NVIDIA unveils world’s largest quantum research supercomputer

New centre aims to accelerate real-world use of quantum computing.

enter new era computing with large quantum computer generative ai

Netherlands unveils open-architecture quantum computer

The open-architecture Tuna-5 showcases how academic labs and startups can build a functional quantum machine with interoperable components from the local supply chain.

Czech justice minister quits over bitcoin scandal

Opposition seeks answers in emergency parliament session on 5 June.

Vodafone fined €45 million in Germany over data privacy violations

Vodafone is facing one of the largest privacy-related fines in Germany’s telecom sector, revealing deep concerns over how personal data is handled behind the scenes.

Crypto-friendly legislation advances in California

The lawmakers have approved a bill allowing crypto payments for state services under a pilot programme.

Meta Clinton Clean Energy Center Illinois Constellation nuclear energy AI

Meta inks 20-year nuclear deal to power AI expansion

Meta’s AI infrastructure plans include $65 billion in spending for 2025.

amazon india beverly hills polo club Lifestyle equities trademark lawsuit

Amazon invests $10 billion in AI data centres

However, an expert warned that Amazon’s investment shows how costly AI infrastructure has become, pushing out smaller developers.

nord quantique qubit quantum computers photons multimode encoding

Nord Quantique says fewer qubits needed for fault tolerance

Quantum computers may need fewer qubits, thanks to new photon-based encoding.

View all updates

READING CORNER

Cognitive offloading and the future of the mind in the AI age

The rise of AI is transforming work and education, but raises questions about its impact on critical thinking and cognitive independence.

UPCOMING EVENTS

9 Jun 2025 – 10 Jun 2025

Informal interactive WSIS stakeholder consultation on the review of implementation of the outcomes of the WSIS+20

The consultation, organised by the the President of the General Assembly, aims to gather input from all relevant WSIS stakeholders on the preparatory process for the review of the implementation…

9 Jun 2025 – 12 Jun 2025

ICANN 83

The event will focus on ongoing policy development, community outreach, and collaboration among global stakeholders.

10 Jun 2025, 14:00h – 15:00h

Final Brief on the WSIS+20 High-Level Event 2025

The session aims to foster open dialogue, encourage active stakeholder engagement, and support continued progress toward the WSIS+20 High-Level Event 2025

12 June 2025 – 13 June 2025

Digital Democracy for All (D4ALL): Capacity Building Programme for Armenia – Diplo Event

Digital Democracy for All (D4ALL): Capacity Building Programme for Armenia The Digital Democracy for All (DD4ALL) project is a collaborative initiative

23 Jun 2025 – 27 Jun 2025

Internet Governance Forum 2025

The Government of Norway will host the 20th annual Internet Governance Forum (IGF) in Lillestrøm from 23 to 27 June 2025.

23 June 2025 – 27 June 2025

Diplo/GIP at IGF 2025 – Diplo Event

Diplo/GIP at IGF 2025 The 20th annual meeting of the Internet Governance Forum (IGF) will be hosted by the Government of Norway, in Lillestrøm, from 23 to 27 June.

24 Jun 2025 – 27 Jun 2025

Global Forum on the Ethics of AI 2025

Thailand will host the 3rd UNESCO Global Forum on the Ethics of Artificial Intelligence from 24 to 27 June 2025.

TikTok bans ‘SkinnyTok’ hashtag worldwide

TikTok has globally banned the hashtag ‘SkinnyTok’ after pressure from the French government, which accused the platform of promoting harmful eating habits among young users. The decision comes as part of the platform’s broader effort to improve user safety, particularly around content linked to unhealthy weight loss practices.

The move was hailed as a win by France’s Digital Minister, Clara Chappaz, who led the charge and called it a ‘first collective victory.’ She, along with other top French digital and data protection officials, travelled to Dublin to engage directly with TikTok’s Trust and Safety team. Notably, no representatives from the European Commission were present during these discussions, raising questions about the EU’s role and influence in enforcing digital regulations.

While the European Commission had already opened a broader investigation into TikTok over child protection issues in early 2024 under the Digital Services Act (DSA), it has yet to comment on the SkinnyTok case specifically. Despite this, the Commission says it is still coordinating with French authorities on matters related to DSA enforcement.

The episode has spotlighted national governments’ power in pushing for online safety reforms and the uncertain role of the EU institutions in urgent digital policy actions.

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