Venezuela's Top Court Issues a $10 Million Fine for TikTok over Allegedly Deadly Video Challenges

The TikTok logo is pictured outside the company's US head office in Culver City, California, US, September 15, 2020. REUTERS/Mike Blake
The TikTok logo is pictured outside the company's US head office in Culver City, California, US, September 15, 2020. REUTERS/Mike Blake
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Venezuela's Top Court Issues a $10 Million Fine for TikTok over Allegedly Deadly Video Challenges

The TikTok logo is pictured outside the company's US head office in Culver City, California, US, September 15, 2020. REUTERS/Mike Blake
The TikTok logo is pictured outside the company's US head office in Culver City, California, US, September 15, 2020. REUTERS/Mike Blake

Venezuela’s Supreme Court on Monday issued a $10 million fine against TikTok for “not implementing measures” to prevent viral video challenges that have allegedly led to the deaths of three Venezuelan children recently.

Judge Tania D’Amelio said TikTok had acted in a negligent manner and gave it eight days to pay the fine, while also ordering the video service company to open an office in Venezuela that would supervise content so that it complies with local laws.

The judge did not explain how Venezuela would force TikTok, whose parent company is based in China, to pay the fine. Venezuela has blocked dozens of websites in previous years for not complying with regulations set by its telecommunications commission.

TikTok did not immediately respond to requests for comment from The Associated Press.

In November, Venezuelan President Nicolas Maduro blamed TikTok for the death of a 12-year-old girl who allegedly died after participating in a TikTok challenge that involved taking tranquilizer pills and not falling asleep.

Venezuela’s Education Minister Hector Rodriguez also said last month that a 14-year-old died after taking part in a TikTok challenge that involved sniffing substances. And on Nov. 21, Venezuela’s attorney general blamed video challenges on TikTok for the death of a third child.

Dozens of radio stations and television channels have been taken off the air in Venezuela under Maduro over their news coverage. More than 60 websites belonging to human rights groups and news companies were blocked at different times this year, according to VE Sin Filtro, a group that tracks media freedoms in the South American country.

In August, Venezuela banned the social media platform X as thousands of Venezuelans took to the streets t o protest the re-election of Maduro.

The Venezuelan government initially banned X for 10 days, after Maduro accused its owner Elon Musk of using the social media platform to “orchestrate attacks against Venezuela.” Musk had accused Maduro of rigging the July 28 election, which the United Nations and the Carter Center, an organization that monitors elections around the world, said did not meet international standards.

X can now be accessed on privately run internet providers in Venezuela, but it is still blocked by Venezuela’s state owned internet provider Movilnet.



EV Maker Rivian Beats Expectations for Deliveries as Supply Snag Eases

Workers assemble second-generation R1 vehicles at electric auto maker Rivian's manufacturing facility in Normal, Illinois, US June 21, 2024. REUTERS/Joel Angel Juarez/File Photo
Workers assemble second-generation R1 vehicles at electric auto maker Rivian's manufacturing facility in Normal, Illinois, US June 21, 2024. REUTERS/Joel Angel Juarez/File Photo
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EV Maker Rivian Beats Expectations for Deliveries as Supply Snag Eases

Workers assemble second-generation R1 vehicles at electric auto maker Rivian's manufacturing facility in Normal, Illinois, US June 21, 2024. REUTERS/Joel Angel Juarez/File Photo
Workers assemble second-generation R1 vehicles at electric auto maker Rivian's manufacturing facility in Normal, Illinois, US June 21, 2024. REUTERS/Joel Angel Juarez/File Photo

Rivian surpassed analysts' expectations for fourth-quarter deliveries on Friday and said its production was no longer constrained by a component shortage, a positive sign for the electric vehicle maker aiming to turn its first profit.

Shares of the California-based company rose nearly 6% in premarket trading. The stock lost more than 40% of its value in 2024.

The shortage of the part used in its R1 SUV and R1T pickups, as well as its delivery vans, started in the third quarter and forced Rivian to slash its annual production target in October.

"The previously discussed shortage of a shared component on the R1 and RCV platforms is no longer a constraint on Rivian's production," the company said on Friday, Reuters reported.

Rivian handed over 14,183 vehicles in the three months ended Dec. 31, compared with estimates of 13,472, according to 15 analysts polled by Visible Alpha.

That was a 42% jump from the previous quarter and marked Rivian's highest deliveries in more than a year, even though Amazon.com, its biggest backer, takes fewer deliveries in the fourth quarter due to its focus on holiday season sales.

Rivian produced 12,727 vehicles in the quarter, compared with estimates of 11,398 units.

For 2024, production came in at 49,476 vehicles, down about 13% from a year earlier but above the company's lowered target of between 47,000 and 49,000 units.

Rivian has cut costs sharply by renegotiating supplier contracts and revamping its manufacturing processes to turn a gross profit for the fourth quarter. It also entered a technology joint venture with German automaker Volkswagen last year that will provide a $5 billion lifeline.

EV makers are grappling with slowing demand as higher borrowing costs push buyers toward cheaper gasoline-powered hybrid vehicles and legacy automakers focus on rolling out electric vehicles.

Bigger rival Tesla reported its first fall in yearly deliveries on Thursday, also weighed down by the EV pioneer's aging lineup.