TikTok’s New Deal And Service Outages, Censorship Allegations, Social Media Addiction Trials

News and Updates:

• TikTok Finalizes U.S. Deal: A new majority U.S.-owned entity, TikTok USDS, was formed with Oracle, Silver Lake, and MGX. ByteDance retains under 20% to resolve security concerns.
• Massive User Growth: TikTok reported reaching 200 million U.S. users, up from 170 million, despite years of legal threats and a looming federal ban.
• Launch Weekend Outages: Shortly after the ownership transfer, TikTok suffered major U.S. outages. The company cited data center power failures, though users remained skeptical of the timing.
• Censorship Controversies: Users accused the new entity of suppressing anti-ICE content. TikTok blamed technical glitches, while experts noted the new leadership's close ties to the administration.
• Social Media Addiction Trials: Landmark "Big Tobacco-style" lawsuits began in Los Angeles. Meta and YouTube face claims that features like infinite scroll intentionally addicted and harmed minors.
• Major Legal Settlements: Snap and TikTok settled with a 20-year-old plaintiff just before trial, but Meta and Google continue to fight claims regarding teen mental health.
• Internal "Smoking Gun" Memos: Unsealed documents revealed Meta employees comparing Instagram to a "drug" and internal admissions that the platform’s design negatively correlates with teen well-being.