World News
The TikTok transfer raises worrying questions for allies like the UK
Social media app TikTok has secured a lifeline in the United States after years of hearings, regulatory battles and high-level talks between US and Chinese officials. A complex restructuring that transfers majority control to US is underway, with investors including technology company Oracle, investment firm Silver Lake, and Rupert Murdoch’s Fox Corp.
President Donald Trump’s executive order certified the pending agreement as a ‘qualified divestiture’, legalizing the social media platform again by removing it from foreign adversary control (in this case, China).
The deal, led by US tech giant, Oracle, gives American companies approximately 65 per cent ownership of TikTok’s US operations, while ByteDance and other Chinese investors retain less than 20 per cent. As part of the new group of owners, Oracle will provide US cloud services and data storage in the US, and apparently receive a licensed copy of the app’s algorithm.
This US transfer is a significant shift in the company’s operations and an on-paper win for President Trump’s White House. But the optics mask a harsher truth.
Deeply rooted issues
Imposing majority US ownership – and going ‘American-operated all the way’ – is a big step. But it is by no means a silver bullet to address the threats TikTok, and similar platforms, present to US democracy and national security.
The deal has been framed as a major win for US technology sovereignty. Operating a US-licensed algorithm and storing user data on American soil might allay anxieties about potential Chinese Communist Party influence over the app’s American users. But long-standing problems remain.
The recommendation algorithms of social media platforms have political power. Research indicates that their design can result in polarization by creating echo chambers. This can limit political dialogue and a diversity of views.
TikTok’s ‘For You’ function provides hyper-personalized content that is highly effective in maximizing user engagement. That has been good for business: the US firm will be valued at approximately $14 billion, with 63 per cent of US teenagers reporting use of the platform.
Meanwhile 1 in 5 American adults regularly get their news from TikTok – a leap from 2020. The new US owners are unlikely to fundamentally change how TikTok’s recommendation algorithm works. The truth is an uncomfortable one, but long-known: what is bad for inclusive and secure online information spaces is often good for business.
Source: Chathamhouse.org
