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To Sell Or Not To Sell: TikTok CEO Faces Pressure From Congress To Avoid The Ban Hammer

by Kiran P Ganesan
March 29, 2023
Wikimedia Commons/Flickr

Wikimedia Commons/Flickr

Over 150 million Americans use TikTok on a daily basis, which is roughly half of the entire population of the United States. For most, the app has been a part of their daily lives, something they use for entertainment or to kill time; for some, it is an essential part of their independent business.

However, the social media giant has been facing incredible amounts of pressure from the U.S. Congress in the past few days, raising concerns for security and privacy. Things are getting out of hand; here are things you need to know about this battle over security and how, in the end, no one wins.

How Meta Set The Scene For TikTok

Flickr

Before TikTok was the giant that it is today, the social media that held the number one spot for the longest time was Facebook, now known as Meta. Back in 2018, the face of Meta, Mark Zuckerberg, was also under intense scrutiny from Congress, which demanded that he answer for his crimes while simultaneously revealing how his company worked.

Meta and all its app business structures were all about taking someone’s private information and selling it to various buyers, alongside the Cambridge Analytica scandal. It was a threat on a national scale that placed Meta in a bad light and, accompanied by bad business decisions, caused Zuckerberg’s empire to fall out of grace.

However, it seems that Congress is much harsher on TikTok because of two major reasons. The first is that TikTok is under the control of a Chinese company known as ByteDance, and may be under the CCP’s control. Second, since Zuckerberg, Congress has wised up and become more informed on how to deal with problems relating to social media.

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Shou Zi Chew Vs Congress

Rep. Richard Hudson (R-NC) asks TikTok CEO Shou Chew: "Does TikTok access the home WiFi network?" https://t.co/Fmv8MED8z0 pic.twitter.com/xwrYuSn3jE

— Bloomberg (@business) March 23, 2023

On Thursday, 23rd March, Republicans and Democrats united against a common enemy as TikTok’s CEO, Shou Zi Chew, testified before the House Energy and Commerce Committee and members of Congress. His first appearance was an intense one as most members of Congress already had a negative view of him and his app. Throughout the hearing, TikTok was treated as a threat to national security because of it’s potential link with the Chinese Communist Party (CCP), the United States’ direct opposition in our modern world, and they seem to be going at extreme lengths to prevent that.

Congress largely fears that TikTok might take a page out of Facebook’s book, where they would steal private user data and information and then use it against them. There is no evidence that TikTok or Chew has done this, but it is evident that the incident with Facebook has left a massive mark on Congress’ memory, and they have become more cautious than ever. Perhaps their line of thinking is that “if an American was able to do that, what more could another nation do?” and they are taking the steps necessary to prevent that worst-case scenario.

Congress’ Demands And Chew’s Compromise

TikTok CEO Shou Zi Chew told Congress the company is establishing a new subsidiary that would ensure all U.S. data is secured and stored in U.S.-based servers.

He said the company expects to finish deleting legacy U.S. data from its servers this year. pic.twitter.com/6Y7WYaA0rH

— POLITICO (@politico) March 23, 2023

The Biden administration has been pressuring Chew with an ultimatum: either sell and transfer the business to the U.S. or risk a permanent ban, like in India. Despite what many believe, this wasn’t the first time TikTok was asked to sell out, as the idea and discourse around it have been floating around since the Trump administration.

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However, Chew fought back and argued against Congress’ demands. He reassured the people that TikTok, though under a Chinese company, was not feeding users’ private information to the CCP. To further ease the ire of the governmental body, the TikTok CEO proposed a plan called “Project Texas”, where American data will be given to an American company for storage and will be overseen by American personnel. However, Congress is not convinced with this proposition.

The Fallout

Max Pixel

Despite this interesting compromise, Congress does not seem keen on accepting the proposal. They insist on the options they have laid out and will do everything in their power to make them a reality, even making a law that may bypass their First Amendment called the RESRICT Act. The new law they are proposing states that, in layman’s terms, they can bypass the First Amendment if national security is threatened.

Whether you’re a lover or a hater of the app, this is bad news, as the U.S. government can ban whatever it pleases under the pretence of a threat. TikTok is not perfect; the app was used as a portal to spread mass disinformation, like about COVID-19 and vaccines, and may still hold the potential to spread more of it.

Both parties don’t know how this will end but remain hopeful that the other will acknowledge their side or perhaps a Congress will listen and try out Chew’s compromise. We are simply hoping for the best, as that is the best and only thing we can do at the moment.

Source: Wikimedia Commons, Flickr [1], [2], Max Pixel

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