TikTok, the popular short video app that has taken the world by storm, is facing increasing scrutiny and pressure from the US government over its Chinese ownership and alleged national security risks. In this blog post, we will summarize some of the recent developments and challenges that TikTok is facing in the US market.
Biden administration threatens to ban TikTok:
Earlier this month, the Biden administration issued an ultimatum to ByteDance, the Chinese parent company of TikTok, to sell its US operations to an American company or face a ban in the country. This move echoes the previous attempt by former President Donald Trump to force a divestment of TikTok in 2020, which was blocked by federal courts.
The Biden administration claims that TikTok poses a threat to national security because it could potentially share its users' data with the Chinese government or be influenced by Beijing's censorship policies. TikTok has repeatedly denied these allegations and said that it operates independently from ByteDance and that it stores its US user data in servers located in the US and Singapore.
According to legal experts, the US president has the authority to block or unwind foreign acquisitions that pose a national security concern under the Exon-Florio amendment, a law established in 1988. However, such an order could face legal challenges and delays in the courts.
TikTok CEO testifies before Congress:
On Thursday, March 23, 2023, TikTok CEO Shou Zi Chew appeared before a House Energy and Commerce Committee hearing to discuss privacy concerns and safeguarding children on TikTok. He faced tough questions from lawmakers from both parties who grilled him about TikTok's data security practices, content moderation policies, and ties to China.
Chew defended TikTok's efforts to protect its users' data and privacy, saying that the company has invested more than $1.5 billion on data security under a project named "Project Texas" which currently has nearly 1,500 full-time employees and is contracted with Oracle Corp to store TikTok’s U.S. user data. He also said that TikTok has implemented strict measures to prevent underage users from accessing inappropriate content and to promote positive online behaviour.
However, Chew failed to convince some lawmakers who questioned his honesty and credibility. He was asked several times if ByteDance has ever shared TikTok user data with the Chinese government or spied on Americans at Beijing's request. He denied these accusations but admitted that some China-based employees at ByteDance had improperly accessed TikTok user data of two journalists in December 2020 and were no longer employed by the company.
House speaker says lawmakers will move forward with TikTok bill:
Following Chew's testimony, House speaker Kevin McCarthy said on Sunday that lawmakers will move forward with legislation to address national security worries about TikTok, alleging that China's government had access to the app's user data. He said that the House will be moving forward with legislation to protect Americans from the "technological tentacles of the Chinese Communist Party".
The proposed bill would give the Biden administration legal authority to seek a ban on TikTok if it deems it necessary for national security reasons. It would also require TikTok to disclose its ownership structure, data collection practices, content moderation policies, and any ties to foreign governments or entities.
Many Democrats also have raised concerns about TikTok but have not yet explicitly backed a US ban. Some have suggested that banning TikTok would violate free speech rights and harm competition in the social media market.
Conclusion:
TikTok is facing an uncertain future in the US as it faces mounting pressure from the government and lawmakers over its Chinese ownership and alleged national security risks. The company has tried to reassure its users and regulators that it is committed to protecting their data and privacy and that it operates independently from ByteDance. However, it remains unclear if these efforts will be enough to avoid a potential ban or divestment in the country.