Background information
Now Trump’s in office, he wants to save TikTok
by Florian Bodoky
America buys TikTok or the app gets banned – what’s behind this US government decision?
24.4.2024
Translation: Patrik Stainbrook
Following the House of Representatives, the Senate has also approved the ultimatum to TikTok owner ByteDance. TikTok will either be sold to a US company or banned. But the owners don’t want to sell. What happens now?
Why is the USA taking such decisive action?
Short video service TikTok is popular all over the world, especially among young people. In the USA alone, over 170 million users have the app on their smartphone – around half of the US population.
The fact that the popular app originates from China is a thorn in the side of many US politicians. The app and its widespread use in the USA is perceived as a security risk. Both Democrats and Republicans claim that ByteDance is passing on user data to the Chinese government, allowing it to spy on US citizens. The US government also fears that TikTok is being misused for anti-Western propaganda. For example, through fake news about the USA or democracy as a whole.
Who owns TikTok?
The owners have already made their opposition to a sale known. Both parent company ByteDance and TikTok itself deny the allegations from the USA. They criticise a lack of evidence supporting the accusation that the Chinese state has access to user data.
In addition, the majority of ByteDance isn’t in purely Chinese hands. Only 40 per cent of it is owned equally by employees of the company and its founders. Around 60 per cent is split between investor companies around the world (page 9/10), including US companies.
For US politicians, however, the exact ownership structure isn’t decisive. To them, the main problem is that ByteDance is headquartered in Beijing, where the company can’t defend itself against the influence of the Chinese government.
ByteDance will go to court
China could also intervene by banning the sale of «sensitive technologies» abroad. The algorithm – ultimately the key to the app’s financial success – could fall into this category. China has already made hints in this direction. If both states were to insist on their respective positions, it’d be the end of TikTok in the USA.
Who would buy TikTok?
What does this mean for European users?
Nevertheless, content would certainly decrease, making TikTok less financially attractive for both investors and influencers. However, if no agreement is reached before the end of the year, a new US president could seek a different solution next year.
Header image: Shutterstock
I've been tinkering with digital networks ever since I found out how to activate both telephone channels on the ISDN card for greater bandwidth. As for the analogue variety, I've been doing that since I learned to talk. Though Winterthur is my adoptive home city, my heart still bleeds red and blue.
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