The White House has given an ultimatum to the Chinese company ByteDance, which owns TikTok – either it sells the platform for short videos to an American owner, or TikTok will be banned on the territory of the United States. American authorities explain their actions as a threat to national security and the protection of personal data, while those who disagree with them consider it a manifestation of censorship of society and undermining the foundations of the market economy in the country.
On March 13, the U.S. House of Representatives approved the bill “To protect the national security of the United States from the threat posed by foreign adversary controlled applications.” In order for the law to take effect, it must be approved by the Senate. Moreover, it is also important to note that on March 21 it was reported that senators from both parties are calling for the release of classified U.S. intelligence information about the negative impact of TikTok in order to show the truth to the American population and “destroy” the reputation of the application.
The main subject of the dispute at the moment is TikTok’s unique algorithm, which processes large amounts of user data that includes not only people’s behavior but also their personal information. This is how the algorithm learns which videos are interesting to viewers and suggests them. It is this feature that allowed TikTok to attract more than a billion active users just two years after entering the international market. Based on that, the Biden administration says TikTok poses national security risks because China could force TikTok to share U.S. users’ data and interests, while TikTok insists it never has and never will share U.S. data.
The details of the algorithm are classified. It is also unknown how TikTok disposes of personal data. But it’s also worth noting that although TikTok has been banned in India since 2020, the company’s employees have access to the personal information of former users. There is reason to believe that this information is in the possession of the Chinese government. Any of the 110,000 employees of ByteDance (TikTok’s parent company) can obtain personal information about users using in-house programs. Personal information can include a user’s social connections; a list of their chats; the location of their conversations; and statistics on app usage, including how and with whom the user shares content from TikTok.
Previously, the Chinese government declared the TikTok algorithm a protected technology. Therefore, it cannot be exported to the border without the approval of the Chinese authorities. ByteDance CEO Shou Tzu Chu stated that “no government will manipulate” TikTok and that China has never requested user data from the US. For ByteDance, blocking their app could be very painful, as the US is TikTok’s largest market with an audience of 170 million users. In China itself, a separate version of the app, Douyin, operates instead of TikTok.
It will also affect users who have made TikTok their main source of income or develop their brand through this social network. According to Lukas Perry, Marketing Specialist for Enrollment Management in Alfred University’s Marketing and Communications Office, “If TikTok were to be banned in the United States, it would leave a hole in the marketing arsenal of colleges and universities. TikTok promotes more organic impressions and growth than other platforms like Instagram and Facebook, which rely more heavily on paid campaigns for viewership and exposure.” He added, “Data shows that Gen Z and Gen Alpha are more likely to search for questions on TikTok than even Google. They are more likely to search for restaurants, businesses, news, and more with TikTok than other platforms, making it easier for prospective students to find smaller colleges. If TikTok is banned, we can expect another platform to fill the void. It’s another case proving the power of supply and demand within capitalism.”
Back in 2020, US President Donald Trump tried to force ByteDance to sell TikTok to an American owner. TikTok itself says it has since spent $1.5 billion on Project Texas, which involved moving US user data from Chinese servers to US servers. The company calls the arrangement “transparent and accountable.” In 2021, Biden rescinded his predecessor’s executive order and ordered a review of the social network.
We can only guess whether the blocking of TikTok is another move in the rivalry between America and China, or whether it is really a concern for the safety of Americans. Moreover, we only can wait for a decision from the Senate, and wonder if electric cars or battery systems made in China will also be “blocked”.