In a recent escalation between the United States and China, following President Joe Biden’s signing of a bill on April 24 to ban TikTok, granting ByteDance a 270-day window to divest the popular short-video app, reports surfaced suggesting ByteDance may opt to shut down TikTok rather than sell it. A Reuters report on April 26 indicated that ByteDance’s core operations relied heavily on the algorithms driving TikTok, rendering the sale of the application unfeasible.
The legislation, passed with overwhelming support in the U.S. Senate (360 to 58), reflects mounting concerns over the Communist Party of China’s potential influence over ByteDance, raising apprehensions about manipulating U.S. citizens through propaganda dissemination and espionage. TikTok plans to challenge the law in court, arguing that it violates the First Amendment.
CEO Shou Zi Chew commended Andersen’s appointment, expressing delight that he “has agreed to step into the role as special counsel to focus on this very important mission facing our company.” Chew reiterated the company’s optimism about prevailing in its legal battle to block the legislation that threatens to ban the app, utilized by an estimated 170 million Americans. Emphasizing its steadfast refusal to sell TikTok, the company underscored its commitment to retaining ownership of the app and its underlying algorithms. Meanwhile, China’s Commerce Ministry pledged to take “necessary measures” to safeguard its interests following Biden’s enactment of the legislation.
In another setback to China’s tech aspirations, TikTok suspended its TikTok Lite rewards program on April 26. The program, compensating users for time spent on the app, faced heightened scrutiny from the European Commission, prompting TikTok to halt the feature voluntarily. The EU had issued a stern warning to the app, threatening fines for failure to provide mandated information to the Commission and mandating a suspension over concerns that the feature might exacerbate addiction by encouraging excessive interaction with the platform. In response, TikTok stated on its platform, “TikTok always seeks to engage constructively with the EU Commission and other regulators. We are therefore voluntarily suspending the rewards functions in TikTok Lite while we address the concerns that they have raised.”
The United States is not alone in contemplating a ban on the contentious app due to concerns about privacy, security, and ethical considerations. India, the largest user base for TikTok, imposed a comprehensive ban on the app along with 58 other Chinese applications in 2021, citing privacy and security apprehensions following military tensions between the two countries. Afghanistan, Iran, and North Korea have similarly prohibited the app, citing concerns about its influence on the youth.
Australia and New Zealand have banned TikTok from all government-owned devices, citing security and privacy concerns. A statement from the department highlighted risks associated with the “extensive collection of user data” and exposure to potential extrajudicial directives from a foreign government that contradict Australian law. The United Kingdom and European Union institutions have also announced an immediate ban on TikTok usage on government-owned devices and personal devices of staff members, citing cybersecurity concerns.