TikTok Must Face Lawsuit over 10-year-old Girl's Death, US Court Rules

A view shows the office of TikTok after the US House of Representatives overwhelmingly passed a bill that would give TikTok's Chinese owner ByteDance about six months to divest the US assets of the short-video app or face a ban, in Culver City, California, March 13, 2024. REUTERS/Mike Blake
A view shows the office of TikTok after the US House of Representatives overwhelmingly passed a bill that would give TikTok's Chinese owner ByteDance about six months to divest the US assets of the short-video app or face a ban, in Culver City, California, March 13, 2024. REUTERS/Mike Blake
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TikTok Must Face Lawsuit over 10-year-old Girl's Death, US Court Rules

A view shows the office of TikTok after the US House of Representatives overwhelmingly passed a bill that would give TikTok's Chinese owner ByteDance about six months to divest the US assets of the short-video app or face a ban, in Culver City, California, March 13, 2024. REUTERS/Mike Blake
A view shows the office of TikTok after the US House of Representatives overwhelmingly passed a bill that would give TikTok's Chinese owner ByteDance about six months to divest the US assets of the short-video app or face a ban, in Culver City, California, March 13, 2024. REUTERS/Mike Blake

A US appeals court has revived a lawsuit against TikTok by the mother of a 10-year-old girl who died after taking part in a viral "blackout challenge" in which users of the social media platform were dared to choke themselves until they passed out, Reuters reported.

While a federal law typically shields internet companies from lawsuits over content posted by users, the Philadelphia-based 3rd US Circuit Court of Appeals on Tuesday ruled the law does not bar Nylah Anderson's mother from pursuing claims that TikTok's algorithm recommended the challenge to her daughter.

US Circuit Judge Patty Shwartz, writing for the three-judge panel, said that Section 230 of the Communications Decency Act of 1996 only immunizes information provided by third parties and not recommendations TikTok itself made via an algorithm underlying its platform.

She acknowledged the holding was a departure from past court rulings by her court and others holding that Section 230 immunizes an online platform from liability for failing to prevent users from transmitting harmful messages to others.

But she said that reasoning no longer held after a US Supreme Court ruling in July on whether state laws designed to restrict the power of social media platforms to curb content they deem objectionable violate their free speech rights.

In those cases, the Supreme Court held a platform's algorithm reflects "editorial judgments" about "compiling the third-party speech it wants in the way it wants." Shwartz said under that logic, content curation using algorithms is speech by the company itself, which is not protected by Section 230.

"TikTok makes choices about the content recommended and promoted to specific users, and by doing so, is engaged in its own first-party speech," she wrote.

TikTok did not respond to requests for comment.

Tuesday's ruling reversed a lower-court judge's decision dismissing on Section 230 grounds the case filed by Tawainna Anderson against TikTok and its Chinese parent company ByteDance.

She sued after her daughter Nylah died in 2021 after attempting the blackout challenge using a purse strap hung in her mother's closet.

"Big Tech just lost its 'get-out-of-jail-free card,'" Jeffrey Goodman, the mother's lawyer, said in a statement.

U.S. Circuit Judge Paul Matey, in a opinion partially concurring with Tuesday's ruling, said TikTok in its "pursuit of profits above all other values" may choose to serve children content emphasizing "the basest tastes" and "lowest virtues."

"But it cannot claim immunity that Congress did not provide," he wrote.



Microsoft Faces UK Lawsuit over Cloud Computing Licenses

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
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Microsoft Faces UK Lawsuit over Cloud Computing Licenses

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)

Microsoft faces legal action in Britain over a claim that thousands of businesses using cloud computing services provided by Amazon, Google and Alibaba could be paying higher license fees to use Windows Server software.

Competition lawyer Maria Luisa Stasi filed a case at the Competition Appeal Tribunal on Tuesday, claiming that British businesses and organizations could collectively be owed more than 1 billion pounds ($1.27 billion) in compensation.

"Put simply, Microsoft is punishing UK businesses and organizations for using Google, Amazon and Alibaba for cloud computing by forcing them to pay more money for Windows Server," she said.

"By doing so, Microsoft is trying to force customers into using its cloud computing service Azure and restricting competition in the sector."

Separately, Britain's competition regulator is investigating cloud computing, a market dominated by Amazon's AWS, Microsoft's Azure and, to a lesser extent, Google Cloud Platform.

Microsoft's licensing practices, for example for its Windows Server and Microsoft 365 products, are part of its inquiry.

It is due to update on its investigation imminently.

Microsoft in 2020 introduced new license fees for running its software on major cloud providers.

The claim alleges it then used the fees to induce customers to use its Azure platform.

Data from the Competition and Markets Authority published in May showed Microsoft was winning customers at a significantly higher rate than other cloud providers since it made the licensing change.

The United States Federal Trade Commission last week opened a broad antitrust investigation into Microsoft, including its cloud computing business, according to a source familiar with the matter.

The FTC is examining allegations the software giant was potentially abusing its market power in productivity software by imposing punitive licensing terms to prevent customers from moving from Azure to competitive platforms, sources said last month.