TikTok, the social media giant known for its viral short-form videos, is facing mounting legal challenges on two continents as courts and regulators scrutinize its business practices. On September 29, 2025, a New Jersey judge denied TikTok's motion for summary judgment in a high-profile lawsuit brought by the state, which alleges the platform is designed to turn teenagers into social media addicts. Meanwhile, on the same day, Indonesia's competition watchdog slapped TikTok with a hefty fine for failing to promptly report its acquisition of the local e-commerce platform Tokopedia, according to Reuters.
The legal woes in New Jersey stem from a lawsuit filed last year as part of a coordinated effort by 14 state attorneys general. The suits allege that TikTok's design and algorithms are intentionally addictive, causing many young users to struggle with poor mental health and body image issues. For TikTok, the New Jersey court's decision to let the lawsuit proceed is a significant setback, signaling that the company will have to defend itself in court rather than resolve the matter quickly through summary judgment.
According to Law.com, the New Jersey judge's decision serves as a "wake-up call" to TikTok. The ruling means the court found enough evidence for the case to move forward, rather than dismissing it outright at this stage. The lawsuit claims that TikTok's platform design and features are not just engaging, but deliberately engineered to keep teenagers hooked, with harmful consequences for their well-being.
The suits brought by the 14 state attorneys general paint a troubling picture: many young TikTok users, they argue, are grappling with anxiety, depression, and negative body image, all exacerbated by the platform's allegedly addictive qualities. The central question is whether TikTok's design choices cross the line from clever engagement to manipulative addiction, especially for vulnerable teen users.
Though TikTok has not issued a public statement in response to the New Jersey ruling, the company has previously defended its practices, arguing that it provides robust tools for users and parents to manage time spent on the app. Still, the wave of lawsuits signals a broader reckoning for social media companies, as lawmakers and regulators worldwide grapple with the mental health impact of digital platforms on young people.
Legal experts say the New Jersey case could set an important precedent. If the court ultimately finds TikTok liable for designing an addictive platform, it could open the door to similar claims against other tech giants. The ruling also highlights the growing willingness of state attorneys general to band together in challenging the practices of Silicon Valley firms, especially when it comes to protecting children and teenagers.
While the U.S. legal battle unfolds, TikTok is also under fire in Asia. On the same day as the New Jersey ruling, Indonesia's competition authority announced a 15 billion rupiah (about $900,000) fine against TikTok. The penalty was imposed for TikTok's failure to promptly report its acquisition of Tokopedia, a major Indonesian e-commerce platform. This move, as reported by Reuters, underscores the increasing scrutiny of global tech mergers by local regulators.
Indonesia's competition watchdog made it clear that TikTok's delay in reporting the acquisition was unacceptable. By imposing the fine, the regulator sent a message not just to TikTok, but to all multinational tech companies operating in Indonesia: compliance with local competition laws is non-negotiable. The case also reflects the growing assertiveness of Southeast Asian regulators in policing the activities of global digital platforms within their borders.
The Tokopedia acquisition was a major strategic move for TikTok, allowing it to expand its footprint in Indonesia's booming e-commerce sector. However, the failure to promptly notify authorities of the deal has now landed the company in hot water. While the $900,000 fine may be a drop in the bucket for a company of TikTok's size, it highlights the reputational risks and operational headaches that can arise from regulatory missteps.
For TikTok, these twin legal challenges—one focused on the alleged social harms of its platform, the other on its corporate conduct—underscore the complex environment in which global tech firms now operate. Regulators and courts from New Jersey to Jakarta are increasingly willing to take on Big Tech, whether the issue is consumer protection, competition, or mental health.
The lawsuits in the United States, particularly the one in New Jersey, are notable for the way they frame TikTok's algorithms and features as not just engaging, but potentially harmful by design. The argument is that the platform's endless scroll, personalized content feeds, and constant notifications are engineered to maximize time spent on the app—at the expense of users' mental health. According to the suits, these design choices have contributed to a rise in anxiety, depression, and body image issues among teens.
The legal strategy of the state attorneys general is to cast TikTok's business model as fundamentally at odds with the well-being of its youngest users. If successful, this approach could force TikTok and other social media companies to rethink how they design their platforms and interact with young people. It could also lead to new regulations or industry standards aimed at curbing addictive features and protecting mental health.
On the international front, the Indonesian fine is part of a broader trend of countries asserting their authority over global tech companies. With the digital economy playing an ever-larger role in national life, regulators are keen to ensure that mergers and acquisitions do not undermine competition or harm local businesses. TikTok's experience in Indonesia may serve as a cautionary tale for other tech firms eyeing expansion in emerging markets: local laws and reporting requirements cannot be ignored.
For users, parents, and policymakers, the unfolding legal battles offer a window into the challenges of regulating social media in the 21st century. The issues at stake—addiction, mental health, corporate accountability, and competition—are complex and deeply intertwined. As courts and regulators weigh the evidence, the outcomes could reshape not just TikTok's future, but the broader landscape of digital platforms worldwide.
As TikTok faces these simultaneous challenges in New Jersey and Indonesia, the company finds itself at a crossroads. The decisions made in courtrooms and regulatory offices over the coming months will have far-reaching implications, not just for TikTok, but for the millions of young people who use its platform every day—and for the future of social media itself.