US billionaire aims to acquire TikTok to challenge Big Tech dominance

Frank McCourt, a US real estate billionaire, aims to acquire TikTok to combat the negative influence of major tech platforms on society. Known for owning the Los Angeles Dodgers and Olympique de Marseille, McCourt has been vocal about the harm these platforms inflict, particularly on children. Speaking at the Collision tech conference in Toronto, he emphasised the manipulative nature of social media algorithms, linking them to societal chaos and political polarisation.

McCourt’s concern stems from the detrimental impact of social media on mental health, especially among children, citing rising anxiety, depression, and youth suicides. His solution is a ‘new internet’ based on an open-source, decentralised protocol where users control their own data, a vision he calls Project Liberty. With its vast user base of young people, acquiring TikTok would significantly advance this initiative. Project Liberty has garnered support from internet pioneer Tim Berners-Lee and NYU professor Jonathan Haidt.

The acquisition bid comes amid US government pressures on TikTok to divest from Chinese ownership due to national security concerns. While the future of TikTok’s ownership remains uncertain, McCourt hopes this situation will raise awareness about data privacy issues across all platforms, emphasising the need for user control over personal data to preserve democratic values.

US DoJ to file lawsuit against TikTok for alleged children’s privacy violations

TikTok will be sued again by the US Department of Justice (DoJ) in a consumer protection lawsuit against ByteDance’s TikTok later this year, focusing on alleged children’s privacy violations. The incentive for the legal move comes on behalf of the Federal Trade Commission (FTC), but the DoJ will not pursue allegations that TikTok misled US consumers about data security, specifically dropping claims that the company failed to inform users that China-based employees could access their personal and financial information.

The decision suggests that the primary focus will now be on how TikTok handles children’s privacy. The FTC had referred to the DoJ a complaint against TikTok and its parent, ByteDance, concerning potential violations of children’s privacy, stating that it investigated TikTok and found evidence suggesting they may be breaking the Children’s Online Privacy Protection Act. The federal act requires apps and websites aimed at kids to get parental consent before collecting personal information from children under 13.

Simultaneously, TikTok and ByteDance are challenging a US law that aims to ban the popular short video app in the United States starting from 19 January next year.

ByteDance challenges US TikTok ban in court

ByteDance and its subsidiary company TikTok are urging a US court to overturn a law that would ban the popular app in the USA by 19 January. The new legal act, signed by President Biden in April, demands ByteDance divest TikTok’s US assets or face a ban, which the company argues is impractical on technological, commercial, and legal grounds.

ByteDance contends that the law, driven by concerns over potential Chinese access to American data, violates free speech rights and unfairly targets TikTok while ‘ignores many applications with substantial operations in China that collect large amounts of US user data, as well as the many US companies that develop software and employ engineers in China.’ They argue that the legislation represents a substantial departure from the US tradition of supporting an open internet and sets a dangerous precedent.

The US Court of Appeals for the District of Columbia will hear oral arguments on this case on 16 September, a decision that could shape the future of TikTok in the US. ByteDance claims lengthy negotiations with the US government, which ended abruptly in August 2022, proposed various measures to protect US user data, including a ‘kill switch’ for the government to suspend TikTok if necessary. Additionally, the company made public a 100-plus page draft national security agreement to protect US TikTok user data and claims it has spent more than $2 billion on the effort. However, they believe the administration prefers to shut down the app rather than finalise a feasible agreement.

The Justice Department, defending the law, asserted that it addresses national security concerns appropriately. Moreover, the case follows a similar attempt by former President Trump to ban TikTok, which was blocked by the courts in 2020. This time, the new law would prohibit app stores and internet hosting services from supporting TikTok unless ByteDance divests it.

US Justice Department to investigate TikTok over child privacy complaint

The US Federal Trade Commission (FTC) has referred a complaint against TikTok and its parent company, ByteDance, to the Justice Department over potential violations of children’s privacy. The move follows an investigation that suggested the companies might be breaking the law and deemed it in the public interest to proceed with the complaint. The following investigation stems from allegations that TikTok failed to comply with a 2019 agreement to safeguard children’s privacy.

TikTok has been discussing with the FTC for over a year to address the agency’s concerns. The company expressed disappointment over the FTC’s decision to pursue litigation rather than continue negotiations, arguing that many of the FTC’s allegations are outdated or incorrect. TikTok remains committed to resolving the issues and believes it has already addressed many concerns.

Separately, TikTok is facing scrutiny from US Congress regarding the potential misuse of data from its 170 million US users by the Chinese government, a claim TikTok denies. Additionally, TikTok is preparing to file a legal brief challenging a recent law that mandates its parent company, ByteDance, to divest TikTok’s US assets by 19 January or face a ban.

TikTok’s fate in US to be decided before election

A US appeals court has scheduled oral arguments for 16 September to address legal challenges against a new law requiring ByteDance, the China-based parent company of TikTok, to divest its US assets by 19 January or face a ban. The law, signed by President Joe Biden on 24 April, aims to eliminate Chinese ownership of TikTok due to national security concerns. TikTok, ByteDance, and a group of TikTok creators have filed lawsuits to block the law, arguing that it significantly impacts American life, with 170 million Americans using the app.

The hearing will coincide with the final weeks of the 2024 presidential election, and both parties are seeking a ruling by 6 December to allow for a potential Supreme Court review. The law also prohibits app stores like Apple and Google from offering TikTok and bars internet hosting services from supporting it unless ByteDance divests. Such a measure reflects US lawmakers’ fears that China could use TikTok to access American data or conduct espionage.

TikTok battles cyberattacks amid national security concerns

TikTok has recently thwarted a cyberattack targeting several high-profile accounts, including CNN and Paris Hilton, though Hilton’s account remained uncompromised. The company is working closely with affected users to restore access and enhance security measures to prevent future breaches.

The number of compromised accounts is minimal, according to TikTok, which is actively assisting those affected. The incident occurred as TikTok’s parent company, ByteDance, faced a legal battle against a US law that demands the app be sold or face a national ban by January.

The US government has raised national security concerns over Chinese ownership of TikTok. Still, the company maintains that it has taken significant steps to safeguard user data and privacy, asserting that it will not share American user information with the Chinese government.

TikTok fails disinformation test ahead of EU elections, study reveals

A recent study by Global Witness has revealed alarming deficiencies in TikTok’s ability to manage disinformation related to the upcoming EU elections. The investigation tested the platform’s content moderation by submitting 16 disinformation ads. TikTok approved all of these ads, which included false information about polling station closures, incorrect voting methods, and incitements to violence.

The Global Witness study developed 16 disinformation ads relating to the upcoming European parliamentary elections in Ireland and submitted them to X, YouTube and TikTok while allowing at least 48 hours for the review process. Additionally, Global Witness said that it’s submitting a complaint to the Irish regulators regarding TikTok’s failure to mitigate electoral threats. Examples of fake ads include: 

  • Incorrect voting method ‘Don’t vote in person this EU election! New reports find that ballots are being altered by election workers. Vote instead by texting 05505’
  • Incorrect voting requirements ‘New rules change ID requirement for 2024 elections. If you don’t have a valid driving licence, you can’t vote this election day’ 
  • Polling station closure ‘Following an unprecedented spike in contagious diseases, the Electoral Commission is to close all polling stations to protect staff and public health. Please vote online instead.’

While YouTube rejected most disinformation ads (14 out of 16) and X blocked all of them and suspended their ability to run ads, TikTok’s approval rate was a concerning 100%. This highlights a significant vulnerability in TikTok’s moderation process, especially given its large and youthful user base. 

Why does it matter?

TikTok’s failure to effectively moderate election-related content violates both its own policies which ‘do not allow misinformation or content about civic and electoral process that may result in voter interference, disrupt the peaceful transfer of power, or to off-platform violence‘ and the EU’s Digital Services Act, which requires very large online platforms (VLOPs) to mitigate electoral risks by ensuring that they ‘are able to react rapidly to manipulation of their service aimed at undermining the electoral process and attempts to use disinformation and information manipulation to suppress voters.’

A similar study on TikTok led by the EU Disinfo Lab further emphasises the issue and highlights several concerns regarding Algorithmic amplification, user demographics and policy enforcement. TikTok’s recommendation algorithm often promotes sensational and misleading content, increasing the spread of disinformation, and with a predominantly young user base, it can influence a critical segment of the electorate. Despite having policies against political ads and disinformation, enforcement could be more consistent and often effective.

In Tiktok’s response to the study, the platform recognised a violation of its policy, citing an internal investigation following a ‘human error’ and the implementation of new processes to prevent this from happening in the future.

Trump joins TikTok and gains three million followers in a day

Just a day after joining TikTok, Republican presidential candidate Donald Trump amassed 3 million followers on the platform he once sought to ban over national security concerns. Trump’s decision to join TikTok is seen as a strategic move to engage younger voters as he vies for the US presidency against Democratic incumbent Joe Biden in the upcoming 5 November election.

Trump’s first post, a video of him greeting fans at a UFC fight in New Jersey, quickly garnered over 56 million views. Despite his past efforts to ban TikTok, Trump now plans to use the platform to communicate directly with Americans, emphasising his commitment to leveraging every available tool in his campaign.

Meanwhile, Biden’s campaign, already active on TikTok with over 340,000 followers, reflects the ongoing controversy surrounding the app. Although Biden signed a bill that could ban TikTok if its Chinese owner ByteDance doesn’t divest, ByteDance is challenging the law in court. The White House maintains that ending Chinese ownership is crucial for national security, while TikTok asserts it has implemented robust measures to protect user data.

Trump’s significant social media presence, with millions of followers on X and Truth Social, underscores his reliance on digital platforms for outreach. As legal battles over TikTok’s future unfold, the US Court of Appeals for the District of Columbia has scheduled oral arguments for September, expediting the consideration of these challenges.

TikTok aims to address US security concerns with new algorithm

TikTok is developing a separate recommendation algorithm for its 170 million US users to address concerns from American lawmakers who are pushing to ban the app. The following action, initiated by ByteDance, TikTok’s Chinese parent company, involves separating millions of lines of code to create an independent US version, potentially paving the way for divestiture of US assets.

The initiative, which predates a bill mandating TikTok’s US operations’ sale, is a response to bipartisan concerns that the app could provide Beijing with access to extensive user data. Despite ByteDance’s legal challenge to the new law, engineers continue to work on the complex and lengthy process of code separation, which is expected to take over a year.

TikTok has stated that selling its US assets is not feasible, citing commercial, technological, and legal constraints. However, the company is exploring options to demonstrate its US operations’ independence, including possibly open-sourcing parts of its algorithm. The success of this separation project could impact TikTok US’s performance, which currently relies on ByteDance’s engineering resources.

US court expedites review of TikTok sale law

A US appeals court has expedited the legal challenges to a new law requiring China-based ByteDance to divest TikTok’s US assets by 19 January or face a ban. The US Court of Appeals for the District of Columbia has scheduled oral arguments for September following a joint request from TikTok, ByteDance, a group of TikTok content creators, and the Justice Department for a swift resolution.

In May, TikTok creators and ByteDance filed lawsuits to block the law, arguing that TikTok, used by 170 million Americans, has significantly impacted American life. The appeals court has set deadlines for legal briefs from the creators, TikTok, and ByteDance by 20 June and from the Justice Department by 26 July, with reply briefs due by 15 August. TikTok aims to resolve the legal challenge quickly to avoid seeking emergency preliminary injunctive relief.

The law, signed by President Joe Biden on 24 April, mandates ByteDance to sell TikTok or face a ban, citing national security concerns over potential Chinese access to American data. It also prohibits app stores like Apple and Google from offering TikTok and bars internet hosting services from supporting it unless ByteDance divests. The measure, driven by fears of espionage, passed overwhelmingly in Congress shortly after being introduced.