New rules from China's Cyberspace Administration and other agencies, effective July 15, regulate AI services that simulate human personality and provide continuous emotional interaction. Ahead of enforcement, Alibaba, ByteDance and Tencent removed the ability for users to customize their general-purpose chatbots into personal companions, prompting an outpouring of grief from users who described losing what felt like real relationships.
The U.S. Department of Justice settled its lawsuit against TikTok, ByteDance and affiliated companies for $400 million over repeated violations of the Children's Online Privacy Protection Act. The suit, filed in 2024, alleged TikTok let children under 13 create standard accounts outside its restricted Kids Mode, collected their data without parental consent, and failed to delete accounts when parents requested it. TikTok will pay $300 million immediately, with an additional $100 million due if a court vacates an earlier 2019 consent decree tied to its predecessor app, Musical.ly.