Entertainment platform TikTok is on the cusp of a ban in the US as President Joe Biden signed a law on Wednesday that could compel TikTok’s Chinese parent company to divest from the popular video-sharing platform, escalating tensions between Washington and Beijing.
The legislation, part of a $95 billion security package primarily funding Ukraine, Israel, and Taiwan, also threatens to remove TikTok from app stores unless it’s sold by its Beijing-based owner, ByteDance, sparking debates on free speech and data security.
Biden says the legislation will “make the world safer and make America safer.”
Lawmakers widely support the measure, viewing TikTok as a national security threat while under ByteDance ownership. Over 170 million people in the U.S. use TikTok and the company vows to challenge the legislation legally.
In an effort to avoid divestment, TikTok has invested over $1.5 billion in “Project Texas” over the past three years. This initiative, in collaboration with American cloud software group Oracle, aims to safeguard US user data and content from Chinese influence. Despite establishing a standalone unit to isolate American data, this measure has not convinced US lawmakers of the app’s safety.
TikTok gathers extensive personal data from its US users, enabling targeted content and advertising. Cybersecurity experts have highlighted TikTok’s ability to track users’ locations, contacts, personal information, and IP addresses, as well as its collection of biometric data such as “faceprints and voiceprints,” posing potential risks to privacy and national security. However, some privacy researchers argue that TikTok’s data collection practices are comparable to other mainstream social networks.
TikTok’s CEO, Shou Zi Chew, maintains that the Chinese government has never requested user data from TikTok and asserts that the company would refuse such requests. However, he acknowledges that China-based ByteDance employees may have access to some US data from the app.
Concerns also arise regarding Beijing’s potential to manipulate TikTok’s algorithms, influencing users’ content consumption and potentially spreading disinformation and propaganda, especially during US election cycles.
In lue of a sale to an American company, TikTok may list on the American stock market among other options according to Chew,
Here’s what the law entails for TikTok and its US user base:
- Ban Implementation: The ban takes effect in 270 days unless ByteDance sells TikTok to a non-Chinese entity. Web access to TikTok would be blocked in the US, with civil penalties imposed on app stores like Apple’s App Store and Google Play for distributing or updating the app. Internet service providers would also be mandated to block access to TikTok.
- Impact on Users: Existing users wouldn’t immediately lose access, but they couldn’t update the app or reinstall it on new devices. Over time, the app would become obsolete without updates. However, users might still access TikTok via VPNs. The ban would particularly affect TikTok’s thriving ecommerce market, potentially benefiting its competitors and reshaping the social media landscape.
- National Security Concerns: The law reflects concerns over China’s potential influence through TikTok, given its access to user data. Despite TikTok’s efforts to safeguard US data through projects like “Project Texas,” skepticism remains about its ties to China and the implications for data privacy and security. The possibility of Beijing manipulating TikTok’s algorithms to influence users’ content consumption is also a worry.
- Legal Challenges: TikTok plans to challenge the law in court, as it did previously with Trump’s attempted ban. However, alternative measures to a sale, such as restructuring plans or stock market listings, face significant hurdles, given China’s regulations on technology exports.
