Home | Newsletters & Shorts | DW Weekly #190 – 13 December 2024

DW Weekly #190 – 13 December 2024

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Dear readers,

The TikTok legal saga in the United States has reached a turning point after a federal appeals court upheld a law requiring its Chinese parent company, ByteDance, to divest its US operations by 19 January 2024 or face a nationwide ban. With 170 million American users and billions in ad revenue at risk, the conflict highlights concerns over national security, free speech, and economic fallout. While the Biden administration defends the law as necessary to counter China’s potential misuse of TikTok’s vast data troves, critics, including the ACLU, argue the ban infringes on First Amendment rights and suppresses a platform used for creativity and communication.

TikTok plans to appeal the ruling to the Supreme Court, but even a divestiture faces severe obstacles. China’s classification of TikTok’s algorithm as a protected technology export makes it nearly impossible for ByteDance to sell the app without Beijing’s approval. This key component of TikTok’s success, responsible for its highly personalised user experience, has turned the sale into a geopolitical dispute between the USA and China, with ByteDance caught in the middle.

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A ban would have far-reaching economic consequences, particularly for advertisers, influencers, and small businesses, and it would also touch on the First Amendment, which means freedom of speech. Brands that have poured billions into TikTok are already developing contingency plans to shift their budgets to rivals like Meta’s Instagram, YouTube, and Snap, all of which stand to gain significant market share. TikTok Shop, which recently generated $100 million in Black Friday sales, has become a vital e-commerce channel for merchants. A ban would sever a critical revenue stream for these businesses, leaving restricted alternatives in the marketplace.

The conflict also reflects a broader US-China tech rivalry. Washington has tightened restrictions on Chinese technology to safeguard national security, while Beijing has retaliated with bans on critical exports, which we examined in detail in the last weekly newsletter. TikTok has become the most visible flashpoint in this struggle, representing China’s technological ambitions and America’s fears of data misuse. Beijing has condemned the forced divestiture, framing it as a ‘commercial robbery’, signalling that any sale would be politically and logistically challenging.

The Biden administration, which has led the charge against TikTok, could extend the 19 January deadline by 90 days if meaningful progress toward a sale is shown. The legal move would push the final decision to President-elect Donald Trump, who has shifted his stance, now opposing the ban out of concern it would benefit rivals like Facebook. However, reversing course would be politically difficult with bipartisan support for the legislation. 

As TikTok’s future hangs in the balance, its fate will ultimately shape the global tech landscape, digital commerce, and cyber diplomatic power dynamics in the near future.

Related news:

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A legal and political turmoil amidst presidential transition.

In other news..

UN Cybercrime Convention raises human rights concerns in the Arab region

The UN General Assembly is poised to adopt a new convention on cybercrime next month, raising concerns about threats to digital rights, particularly in the Arab region.

International Red Cross sets guidelines for AI use

The International Committee of the Red Cross (ICRC) has introduced principles for using AI in its operations, aiming to harness the technology’s benefits while protecting vulnerable populations.

Visit dig.watch now for more important updates and other topics !

Follow Diplo at IGF 2024! The GIP Digital Watch observatory will provide just-in-time reporting from IGF 2024 in Riyadh.

Marko and the Digital Watch team


Highlights from the week of 06-13 December 2024

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With the education AI market projected to reach $88.2 billion, OpenAI seeks to address adoption hurdles while innovating.

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Under President Nayib Bukele, the El Salvadoran government has accumulated 5,900 BTC, generating significant profits from an initial investment, with Bitcoin’s price recently surpassing $100,000.

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The initiative aligns with a global trend, as countries like El Salvador, Brazil, and Poland adopt bitcoin reserves.

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New office in Beijing tech hub for the US giant.

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After visiting her doctor for a persistent cough, a Farncombe woman became the first patient in her hospital trust to benefit from an AI-powered lung cancer diagnosis system.

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Willow’s development is part of the team’s ongoing efforts to harness quantum mechanics for societal benefits.

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Durov, who is currently barred from leaving France until March 2025 after posting a $6 million bail, could face up to 10 years in prison and a €500,000 fine if…

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Perplexity faces legal challenges from publishers as it tests new advertising features.

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Chinese drones could face new bans under US military legislation.

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The EU has ordered TikTok to freeze election data tied to Romania’s contentious polls.

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Meta’s sustainable energy drive continues with 760 MW solar projects across four US states.


Reading corner

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In exploring the interplay between certainty, probability, and mystery in AI, the insights from Robert Harris’s film Conclave provoke deep reflection. Certainty, while desirable, can mislead, especially in addressing life’s complex questions.

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The upcoming Internet Governance Forum (IGF) in Riyadh will explore AI’s historical connections to Islamic and Arab philosophical traditions. This legacy, rooted in the Islamic Golden Age, emphasized knowledge synthesis and significant advancements in mathematics, statistics, and ethics.

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As the digital era progresses, the EU’s consumer protection framework is expected to adapt further, ensuring transparency, fairness, and consumer autonomy remain central in a rapidly changing marketplace.

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What are AI ‘hallucinations,’ and why do they matter? Dr Anita Lamprecht breaks down the maths behind this phenomenon and its governance implications.

Upcoming

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The 19th annual Internet Governance Forum will be hosted by the Kingdom of Saudi Arabia in Riyadh on 15-19 December 2024. Stakeholders are encouraged to submit thematic inputs by Januaryu0026hellip;

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www.diplomacy.edu
u003cpu003eDiplo will be actively involved in the 2023 Internet Governance Forum (IGF) in Kyoto, Japan, focusing on topics like bottom-up internet governance, knowledge management, enhancing civil society participation, and cyber norms. u003c/pu003e