Will the White House's TikTok Deal Put US in Control of the Algorithm?

The White House has announced that a significant deal is underway, allowing US companies to take control of TikTok's algorithm and appoint most board members for its US operations. This change stems from ongoing national security concerns regarding the Chinese parent company, ByteDance. The deal, which could be finalised soon, has yet to receive a response from Beijing.

Last updated: 05 October 2023 (BST)

Key Takeaways

• The White House has proposed a deal for US companies to manage TikTok's algorithm.
• Americans are set to hold six of the seven board seats for TikTok's US operations.
• Oracle will oversee data and privacy for TikTok in the US.
• President Trump claims a productive discussion with China's Xi Jinping regarding the deal.
• Concerns over TikTok's data access have led to legal actions and potential bans.

Background of the TikTok Negotiations

The discussions surrounding TikTok's operations in the United States have been ongoing for several years, primarily driven by national security concerns. The app, owned by Chinese company ByteDance, has faced scrutiny from US officials who argue that it poses a risk to the privacy and data security of American users.

In January 2024, the US Supreme Court upheld a law mandating ByteDance to divest its US operations or face a ban on the app. This decision was a clear indication of the seriousness of the US government's concerns regarding the app's data handling practices, which were deemed a potential national security threat.

Details of the Proposed Deal

Press Secretary Karoline Leavitt announced that the forthcoming agreement would allow US firms to control TikTok's algorithm, a vital component of the app that determines the content users see. This change is seen as a way to ensure that American interests are prioritised in the app's operations.

Oracle, a major tech company headed by Larry Ellison, is poised to take the lead on data privacy for TikTok in the US. Ellison, known for his close ties to former President Trump, is seen as a strategic ally in this deal. Leavitt stated, "The data and privacy will be led by one of America's greatest tech companies, Oracle, and the algorithm will also be controlled by America as well."

This shift in control could significantly alter how TikTok operates in the US, especially concerning user data and content moderation.

The Role of the Board

The proposed structure of TikTok's board is also noteworthy. Under the new arrangement, US nationals would occupy six out of seven board seats, giving Americans substantial influence over the platform's direction. This move is part of the broader strategy to ensure that US interests are safeguarded in the app's operations and decision-making processes.

The board's composition will likely play a crucial role in shaping TikTok's policies, especially regarding data management and user privacy. The presence of predominantly American leadership could engender greater trust among users who have expressed concerns over the app's ties to China.

The Implications for ByteDance and TikTok

This potential deal represents a significant shift in the landscape for TikTok, which has been under constant scrutiny since its inception. The previous administration's threats to ban the app had already created uncertainty for its operations in the US. Now, with the possibility of a forced sale, ByteDance faces pressure to comply with US regulations while maintaining its business interests.

Although President Trump has previously called for TikTok's ban, he has since pivoted to embrace the platform. His recent campaign leveraged TikTok's popularity among younger voters, illustrating a complex relationship with the app. The balance between national security and political strategy continues to be delicate.

Beijing’s Response and International Relations

As the negotiations advance, Beijing has remained largely silent. China's official state news agency, Xinhua, indicated that Xi Jinping welcomed negotiations but did not confirm any details regarding the deal. This lack of clarity from the Chinese government could suggest ongoing tensions between the two nations over technology and data privacy.

China's approach to the negotiations will undoubtedly impact the final outcome. If a deal is struck, it could potentially set a precedent for how technology companies operate across borders and manage their data practices.

Concerns About Data Privacy and Security

The US Department of Justice has expressed grave concerns about TikTok's access to user data, characterising it as a national security threat of "immense depth and scale." These concerns underline the importance of the proposed deal, as controlling TikTok's algorithm and data management is seen as critical to safeguarding US citizens' information.

As the app boasts about 170 million American users, the stakes are high. Ensuring that user data remains secure and private is paramount, and the involvement of a trusted American tech company like Oracle aims to address these issues head-on.

The Road Ahead: What Happens Next?

As negotiations proceed, several questions remain unanswered. Will the deal be finalised in the coming days as suggested by Leavitt? What will be the ramifications for ByteDance if the sale goes through? And how will this impact TikTok users and their experience on the platform?

Moreover, the implications of this deal may extend beyond TikTok itself, influencing how other foreign-owned tech companies operate in the US and potentially altering the global tech landscape. The balance between national security, user privacy, and business interests continues to be a contentious issue.

FAQs

What is TikTok's current ownership structure?

Currently, TikTok is owned by the Chinese company ByteDance. However, the US government is pushing for changes that would allow US companies to gain control over its operations, including its algorithm.

Why is the US concerned about TikTok?

The US government has raised concerns that TikTok poses national security risks due to its access to user data and potential ties to the Chinese government. These concerns have led to legal actions and calls for ByteDance to divest its US operations.

What role will Oracle play in the TikTok deal?

Oracle is set to manage data privacy and security for TikTok in the US, marking a significant shift in how user data will be handled. This move aims to safeguard American users' information from potential foreign threats.

What is the status of the negotiations with Beijing?

As of now, there has been no official confirmation from Beijing regarding the negotiations. While President Trump indicated a productive call with Xi Jinping, details remain unclear, and China's response is awaited.

What are the implications for TikTok users?

If the deal is finalised, it could lead to changes in how TikTok operates, especially regarding content moderation and data privacy. Users may see a shift towards a more American-centric approach to their data and privacy concerns.

As the situation develops, it raises important questions about data security, international relations, and the future of technology in an increasingly interconnected world. What do you think the outcome will be for TikTok and its users? #TikTok #DataPrivacy #USChinaRelations