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New York City sues tech giants for allegedly fueling youth mental health crisis

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New York City has filed a sweeping federal lawsuit against Meta, Google, Snap, TikTok, and ByteDance, accusing them of addicting children to social media and worsening a mental health crisis among young users. The 327-page complaint, lodged in Manhattan federal court, seeks damages for gross negligence and public nuisance, alleging that platforms like Instagram, YouTube, Snapchat, and TikTok were deliberately engineered to exploit the psychology of youth for profit.

The lawsuit claims the companies’ products have contributed to rising rates of depression, sleep deprivation, and chronic absenteeism among minors. According to the city’s data, more than 77% of New York City high school students spend over three hours daily on screens, and 82% of girls report similar habits.

New York’s health commissioner declared social media a public health hazard earlier this year, citing growing taxpayer burdens to combat mental health challenges in schools. The city also linked compulsive platform use to dangerous behaviors such as “subway surfing,” which has caused at least 16 deaths since 2023.

The case joins over 2,000 similar lawsuits filed nationwide, now consolidated in federal court in Oakland, California. A spokesperson for Google rejected the allegations, saying YouTube is a streaming platform rather than a social network. Other defendants have not yet commented.

The city argues that the companies must be held accountable for the harm caused by their algorithms, which it says have created a costly and deadly youth mental health epidemic.

Indonesia Suspends TikTok’s Operating Registration Over Data-Sharing Failures

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Indonesia has suspended TikTok’s registration as an electronic systems provider after the company allegedly failed to hand over full data related to its live-streaming feature, according to a statement from the country’s communications and digital ministry on Friday.

The move technically gives authorities the power to restrict access to TikTok—used by over 100 million Indonesians—but as of Friday, Reuters reporters were still able to access the app normally. Officials have not yet clarified whether the suspension will lead to an outright block.

Ministry official Alexander Sabar said the suspension followed concerns that accounts linked to online gambling exploited TikTok’s live-streaming tool during recent national protests, which erupted over lawmakers’ allowances and police brutality from late August through September. TikTok had temporarily suspended its live feature during the unrest, saying it aimed to “keep TikTok a safe and civil space.”

According to Sabar, the government requested TikTok’s traffic, streaming, and monetization data, but the company, owned by China’s ByteDance, did not fully comply, citing internal company procedures. “The communications and digital ministry deemed TikTok to have violated its obligations as a private electronic provider,” Sabar said, explaining that the platform’s registration was therefore suspended.

Under Indonesian law, all registered digital service providers must share certain operational data with the government for oversight purposes or risk being blocked.

In response, a TikTok spokesperson stated that the company respects local laws and is working with authorities to resolve the issue.

The dispute highlights Indonesia’s tightening regulatory scrutiny over global tech platforms, following a broader regional trend toward data sovereignty—governments demanding access to digital companies’ data as a condition for market operation.

OpenAI Launches “Sora” — an AI Video App That Can Generate Clips from Copyrighted Material

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OpenAI has unveiled Sora, a new AI-powered video creation app that allows users to generate and share short videos — including those derived from copyrighted content — directly to a built-in social media-style feed. The app, which represents OpenAI’s most ambitious push yet into generative video, is expected to raise new tensions across the entertainment industry.

According to the company, copyright holders such as movie and television studios must actively opt out if they do not wish to have their content appear in the app’s video feed. OpenAI described this as a continuation of its previous opt-out policy used for AI image generation, where creators must explicitly request the exclusion of their work from model training or public feeds.

The move is already sparking debate in Hollywood. People familiar with the matter said that Disney has opted out, and other major studios are currently in talks with OpenAI over the implications of Sora’s copyright framework.

Earlier this year, OpenAI urged the Trump administration to formally classify the use of copyrighted material for AI training as “fair use” under U.S. law — a position it argued was essential for national competitiveness and security, warning that U.S. AI firms could fall behind Chinese rivals without legal clarity.

Beyond copyright issues, OpenAI said Sora includes robust safeguards to prevent the misuse of personal likenesses and public figures. Users cannot generate videos of other people unless those individuals upload an AI “liveness check” — a verification process requiring users to move their heads and recite random numbers — to confirm consent.

Sora videos can be up to 10 seconds long and feature a new “Cameo” function, allowing users to create lifelike digital doubles of themselves and insert them into AI-generated scenes. The company says these videos are intended for creative experimentation and entertainment, with built-in transparency markers indicating AI generation.

Market analysts view the Sora app as a direct challenge to existing short-video giants such as TikTok, Instagram Reels, and YouTube Shorts. Morgan Stanley analyst Brian Nowak noted that the platform’s combination of AI creativity and social-sharing features positions OpenAI “in the business of competing for attention and reshaping user behavior.”

As Hollywood, regulators, and AI companies continue to clash over intellectual property and deepfake laws, Sora’s launch could set a major precedent for how AI-generated audiovisual content will be treated under future copyright and media frameworks.