The China Mail - TikTok in the US goes American, but questions remain

USD -
AED 3.672505
AFN 62.498444
ALL 82.527553
AMD 368.44994
ANG 1.79046
AOA 917.999994
ARS 1441.905096
AUD 1.423761
AWG 1.8025
AZN 1.697417
BAM 1.690457
BBD 2.018247
BDT 122.882912
BGN 1.66992
BHD 0.377927
BIF 2990.556229
BMD 1
BND 1.288338
BOB 6.907788
BRL 5.175196
BSD 1.002019
BTN 95.321771
BWP 13.55427
BYN 2.767703
BYR 19600
BZD 2.015388
CAD 1.394125
CDF 2275.999954
CHF 0.79796
CLF 0.023296
CLP 916.860026
CNY 6.77275
CNH 6.77572
COP 3576.68
CRC 462.400201
CUC 1
CUP 26.5
CVE 95.649822
CZK 20.90355
DJF 178.439918
DKK 6.46817
DOP 58.361022
DZD 133.61903
EGP 51.718502
ERN 15
ETB 161.549911
EUR 0.86539
FJD 2.219798
FKP 0.749189
GBP 0.746585
GEL 2.650109
GGP 0.749189
GHS 11.709813
GIP 0.749189
GMD 72.999971
GNF 8777.58428
GTQ 7.620003
GYD 209.14383
HKD 7.836895
HNL 26.795647
HRK 6.521298
HTG 131.017722
HUF 307.708502
IDR 17945
ILS 2.965398
IMP 0.749189
INR 95.16055
IQD 1310
IRR 1375174.999867
ISK 124.090119
JEP 0.749189
JMD 158.237664
JOD 0.709002
JPY 160.364499
KES 129.450078
KGS 87.449695
KHR 4025.298908
KMF 426.999643
KPW 899.855249
KRW 1525.255022
KWD 0.30919
KYD 0.833049
KZT 488.143446
LAK 22002.50177
LBP 89734.701127
LKR 337.385637
LRD 182.499452
LSL 16.520062
LTL 2.95274
LVL 0.60489
LYD 6.386408
MAD 9.25698
MDL 17.383563
MGA 4203.868564
MKD 53.342392
MMK 2099.173167
MNT 3578.677969
MOP 8.06868
MRU 40.01161
MUR 47.869982
MVR 15.460209
MWK 1737.604783
MXN 17.43251
MYR 4.063099
MZN 63.894795
NAD 16.510091
NGN 1359.859779
NIO 36.874025
NOK 9.50565
NPR 152.879713
NZD 1.718848
OMR 0.38451
PAB 0.999693
PEN 3.43075
PGK 4.385703
PHP 61.409504
PKR 278.851286
PLN 3.67026
PYG 6172.400946
QAR 3.645497
RON 4.533398
RSD 101.577007
RUB 71.9775
RWF 1467.281825
SAR 3.753948
SBD 8.045573
SCR 13.205996
SDG 600.513701
SEK 9.45875
SGD 1.286915
SHP 0.746601
SLE 24.649473
SLL 20969.502105
SOS 572.715851
SRD 37.473983
STD 20697.981008
STN 21.226732
SVC 8.747099
SYP 110.532098
SZL 16.480384
THB 32.898985
TJS 9.326724
TMT 3.51
TND 2.90875
TOP 2.40776
TRY 46.137199
TTD 6.78073
TWD 31.610501
TZS 2624.998024
UAH 45.015444
UGX 3771.10605
UYU 40.468298
UZS 12024.999869
VES 566.973195
VND 26314
VUV 119.284637
WST 2.746352
XAF 568.334091
XAG 0.015395
XAU 0.000237
XCD 2.70255
XCG 1.801626
XDR 0.706825
XOF 568.336554
XPF 103.749947
YER 238.649801
ZAR 16.531402
ZMK 9001.199098
ZMW 17.797205
ZWL 321.999592
  • RBGPF

    1.4900

    61.5

    +2.42%

  • CMSC

    -0.0500

    22.31

    -0.22%

  • CMSD

    -0.1300

    22.28

    -0.58%

  • BCC

    2.0400

    70.01

    +2.91%

  • VOD

    -0.1400

    14.67

    -0.95%

  • RYCEF

    -0.1500

    16.37

    -0.92%

  • NGG

    0.9100

    81.08

    +1.12%

  • RELX

    0.4200

    34.94

    +1.2%

  • RIO

    0.4900

    101.42

    +0.48%

  • BCE

    0.4000

    24.58

    +1.63%

  • JRI

    0.2600

    12.72

    +2.04%

  • BTI

    0.2600

    59.95

    +0.43%

  • GSK

    0.6100

    51.25

    +1.19%

  • AZN

    1.8800

    183.43

    +1.02%

  • BP

    -1.0500

    42.67

    -2.46%

TikTok in the US goes American, but questions remain
TikTok in the US goes American, but questions remain / Photo: © AFP/File

TikTok in the US goes American, but questions remain

After a long legal saga, TikTok has established a majority American-owned joint venture to operate its US business, deflecting the threat of a ban over its Chinese ownership.

Text size:

Here is a look at the potential consequences of the deal -- if any -- for users and beyond:

- What it means for users -

Whether the 200 million users in the United States will notice any difference in their online experience remains unclear. After the deal, users don't need to download a new app, though they were prompted to accept new terms of service covering "new types of location information" and data usage.

At the heart of the ownership drama is TikTok's powerful algorithm, which US lawmakers feared could be weaponized for data or propaganda by the Chinese government. The new ownership has promised to "retrain" the app's magic sauce, but how that will affect the user experience is still unknown.

TikTok insists that US users will maintain a "global TikTok experience," meaning US creators can still be discovered internationally and businesses can "operate on a global scale."

However, the US-only algorithm raises questions.

"There are still questions of how this new entity will interact with other versions of TikTok globally," said Jennifer Huddleston of the CATO Institute in Washington.

She also wondered about "what influence the US government may have over the algorithm and the free speech concerns that could arise from this new arrangement."

A major investor in the new entity is Larry Ellison, who is also financing his son David's recent takeover of Paramount and bidding war to take over Warner Bros -- potentially giving the family unprecedented power over US media.

Creators are watching especially closely, since their popularity and income depend on the algorithm's mysterious workings. Some have already migrated to other platforms, frustrated or anxious about the political turmoil surrounding the app.

- What it means for TikTok -

Before President Donald Trump took office, TikTok's fate in the United States looked bleak. The app was even briefly switched off in its biggest market after exhausting all legal options.

The political chaos has likely taken a toll on TikTok, despite Trump ultimately coming to its rescue.

"TikTok remains incredibly popular in the US, but it's facing more competition than ever, particularly from Instagram Reels," said Emarketer analyst Minda Smiley.

The algorithm that took the world by storm five years ago is no longer unique. Instagram Reels and YouTube Shorts now offer similar experiences, retaining engagement and attracting advertisers at comparable scale.

According to Emarketer, while US TikTok users still spend more time on the app than on other social networks, that time is declining each year, "signaling that the app is struggling to keep users hooked in the way it once did."

- What it means for national security -

The divestment may have satisfied the Trump administration, but whether it will satisfy the lawmakers who passed the divest-or-ban law remains to be seen, warned University of Florida media professor Andrew Selepak.

"The TikTok deal has improved the privacy of exactly no one and has done nothing to improve national security," said Kate Ruane of the Washington-based Center for Democracy & Technology.

ByteDance now owns just under 20 percent of the company, with the rest spread across several mainly US companies.

However, John Moolenaar, the Republican chairman of the House Foreign Affairs Committee, has vowed to conduct full oversight of the agreement, signaling potential trouble ahead.

TikTok says key functions like e-commerce and marketing will remain tied to the global entity and that could be problematic.

"I don't know how you could accomplish e-commerce and not take data from me as an American user," Selepak said.

For Carl Tobias of the University of Richmond School of Law, "It seems like Trump has just eclipsed whatever Congress might have intended in terms of national security."

H.Au--ThChM