Tag Archives: ByteDance

The House Passes A TikTok Divesture Bill With A Longer Sale Deadline



The House once again passed a bill that could ban TikTok from the US unless its Chinese parent company ByteDance divests it — but this time, it’s in a way that will be harder for the Senate to stall, The Verge reported.

The bill passed 360-58 as part of a larger bill related to sanctions on foreign adversaries like Russia. It’s part of a package of foreign aid bills that seek to provide military aid to Ukraine and Israel and humanitarian aid to Gaza. 

Due to the urgency of the funds, packaging the TikTok bill with these measures means that the Senate will need to consider the proposal more swiftly than it would as a standalone bill. The earlier TikTok bill, which passed the House 353-65 just last month, has so far lingered in the Senate, with lawmakers there giving mixed messages about its future.

NBC News reported the House on Saturday passed a $95 billion package that includes two long-awaited bills with $60.8 billion of Ukraine aid and $26 billion in aid to Israel.

The Ukraine bill, which passed with 311 votes in favor, 112 votes against, and one present, will now head to the Senate alongside the Israel aid bill and two others — one for Taiwan and another that forces TikTok’s parent company to sell the platform.

The House also voted on Saturday to force TikTok’s parent company to sell it or be banned in the U.S. According to the bill, China-based ByteDance will have to sell TikTok within nine months — which the president could extend to a year — or face a nationwide ban. The policy, which lengthens the time frame for a sale from the earlier House bill, has Senate buy-in along with Biden’s support, putting TikTok closer than ever to a ban in the U.S.

Engadget reported the US House of Representatives passed a bill on Saturday that could either see TikTok banned in the country or force its sale. A revised version of the bill, which previously passed in the House in March but later stalled in the Senate, was roped in with a foreign aid package this time around, likely meaning it will now be treated as a higher priority item.

The bill paints TikTok as a national Security threat due to its ties to China. There are roughly 170 million US users on the app, at least according to TikTok, and ByteDance isn’t expected to let them go without a fight. 

In a statement posted on X earlier this week, the TikTok Policy account said such a law would “trample the free speech rights” of these users, “devastate 7 million businesses, and shutter a platform that contributes $24 billion to the U.S. economy, annually.” Critics of the bill have also argued that banning TikTok would do little in the way of actually protecting Americans’ data.

In my opinion, one of two things needs to happen: ByteDance finds a American buyer for the app and sells it to that person. Or, the United States government officially bans TikTok.


TikTok Is Urging Users To Call Congress About A Looming Ban



As support grows for a bill in Congress that would effectively ban TikTok in the US, the video platform is trying to rally support among a key group: its own users, The Verge reported.

TikTok sent users in the US a push notification on Wednesday, warning that “Congress is planning a total ban of TikTok” that would [strip] 170 million Americans of their Constitutional right to free expression.” The page says that a ban would “damage millions of businesses, destroy the livelihoods of countless creators across the country, and deny artists an audience.”

The alert includes a way for users to find their representatives and call their office.

According to the Verge, the notification comes shortly after the White House expressed support for a bipartisan bill directed at TikTok, which is owned by the Chinese company ByteDance. The bill — called the Protecting Americans from Foreign Adversary Controlled Applications Act — is in response to the perceived national security risks of TikTok, particularly around how the company collects user data.

The bill would require that TikTok break off from ByteDance or risk being removed from app stores in the US.

Axios reported members of Congress are being flooded with calls from angry constitutions after TikTok launched a new campaign warning its users that the Chinese-owned app was at risk of being shut down in the U.S.

According to Axios, a key House committee voted unanimously Thursday afternoon to advance bipartisan legislation that would force ByteDance — TikTok’s Chinese parent company — to divest its ownership of the app within 165 days.

The highly unusual 50-0 vote in the House Energy Commerce Committee — which unveiled the bill two days ago alongside the China Select Committee — reflected some of the anger among members about TikTok’s pressure campaign.

House Majority Leader Steve Scalise (R-La.) said Thursday he would “absolutely” put the bill on the House floor.

The White House also indicated that President Biden would sign the bill, injecting new urgency— and aggression — into TikTok’s campaign to counter the yearlong efforts to address the app’s national security risks.

After asking users to enter their ZIP code, TikTok then directed them to call their representative in Congress and let them “know what TikTok means you and tell them to vote NO.”

Axios also reported that the authors of the bill responded furiously to what they called a “massive propaganda campaign,” emphasizing that TikTok would not be banned if ByteDance divests its ownership.

“TikTok is characterizing it as an outright ban, which is of course an outright lie,” House China Select Committee Chair Mike Gallagher (R-Wis.) told reporters.

“So bad we turned phones off… Which means we could miss calls from constituents who actually need urgent help with something,” a senior Democratic aide added.

In my opinion, TikTok appears to be engaging in propaganda, by making its users feel that the app could disappear from their phones. Ironically, this is causing lawmakers in Congress to turn off their phones. I don’t think the pressure campaign from TikTok is working.


Lawmakers Introduce Bill That Would Punish App Stores For Hosting TikTok



After a long reprieve from serious congressional scrutiny, lawmakers are taking another crack at getting TikTok to sever ties from its Chinese parent company, ByteDance, The Verge reported. 

The leaders of the House Select Committee on the Chinese Communist Party, chair Mike Gallagher (R-WI) and ranking member Raja Krishamoorthi (D-IL), announced the introduction of the Protecting Americans from Foreign Adversary Controlled Applications Act on Tuesday. The bill, which has 19 lawmakers signed on so far, would make it illegal to distribute apps controlled by ByteDance, including TikTok, unless they sever ties from the Chinese tech giant.

According to The Verge, if enacted, the bill would impose a civil penalty on app stores and web hosting services that distribute TikTok and other covered services, unless the app is separated from Chinese ownership. The penalty for an app store that violates the law would be calculated by multiplying the number of US users that “accessed, maintained or, or updated” the foreign adversary app by $5,000. The bill would be enforced by the U.S. attorney general.

It also creates a process for the president to designate other social media companies from foreign adversary countries like China, Russia, Iran, and North Korea as subject to the bill — meaning apps owned by designated companies that are distributed in the US would need to sever ties to continue operating there.

TikTok spokesperson Alex Haurek said in a statement that the bill “is an outright ban of TikTok, no matter how much the authors try to disguise it. This legislation will trample the First Amendment rights of 170 million Americans and deprive 5 million small business of a platform they rely on to grow and create jobs.”

CBS News reported: For months, lawmakers have been warned of national security concerns posed by TikTok’s ties to the Chinese Communist Party. Last May, Montana became the first state in the nation to pass legislation banning TikTok entirely. However, that law is still facing legal challenges.

A new bipartisan House bill set for review by the House Committee on Energy and Commerce on Thursday would require TikTok to divest from its Chinese-based owner ByteDance or risk a ban from app stores in the U.S.

“We implore ByteDance to sell TikTok so that its American users can enjoy their dance videos, bad lip sync, everything else that goes along with TikTok,” Democratic Rep. Raja Krishnamoorthi of Illinois, one of the bill’s sponsors, said in a news conference Wednesday.

According to CBS News, there are growing fears the personal information TikTok devours from its users could fall into the hands of the Chinese government.

“The choice is up to TikTok,” Republican Rep. Cathy McMorris Rodgers of Washington told CBS News. “They have a choice to make as to whether or not they want to remain with ByteDance, that we know is controlled by the Chinese Communist Party.”

In my opinion, it might be a good idea to separate TikTok and ByteDance from it’s American users. From what I understand, US officials were warned to remove TikTok from their phones a while ago.


TikTok Begins Removing Universal Music Publishing Songs



The bruising battle over royalties between Universal Music Group and TikTok entered a new and more severe stage in the early hours of Tuesday as songs published by UMG began to be removed from the platform, Variety reported.

The standoff, which began earlier this month, initially saw recordings owned or distributed by UMG removed from the platform, but now is extending to a much larger number of songs by including those published by the company.

The situation, accompanied by a bellicose war of words from both sides, pits UMG — the world’s largest music company — against TikTok — the most influential platform for promoting music for the past five years — as they continue to fail to renew their licensing agreement, which expired on Jan. 31.

According to Variety, the reach of this latest move is broad, as it effects a vast number of recordings not issued by a UMG-owned label, and many artists who have collaborated with songwriters under contract to Universal Music Publishing Group. Videos featuring those songs must either be removed from the platform or have the music on them muted.

TechCrunch reported TikTok is losing even more songs over its quarrel with Universal Music Group (UMG), as the social media network is starting to remove songs published by UMG, the company confirmed to TechCrunch on Tuesday.

According to TechCrunch, the row between the two companies began last month when UMG announced that it failed to reach a deal with TikTok’s parent company, ByteDance, over royalties. As a result, TikTok has to remove songs owned or distributed by UMG by January 31. Now, the company has to remove songs that contain compositions controlled by Universal Music Publishing Group.

TikTok says all songs that have been written or co-written by a songwriter signed to UMPG must be removed, and all videos that feature these songs must be muted. Videos that include impacted songs will still remain on the platform, but they won’t have any sound. The company says UMG and UMPG’s catalogue represents anywhere from 20-30% of popular songs on TikTok.

Mashable reported that Universal Music Group is back for more music. The music company will pull even more songs from TiKTok. At the beginning of the month, the deal between UMG and TikTok expired, and negotiations dissolved over royalties resulting in UMG removing all the music it owned or distributed from the platform.

Now, TikTok must take down all the songs controlled by Universal Music Publishing Group (UMPG), which includes any song that a UMG signed-artist wrote or co-wrote.

According to Mashable, TikTok estimates that UMG and UMPG owns 20 to 30 percent of the popular music on the platform. When a song is removed from TikTok, all the videos previously containing the song go silent — resulting in an eerily quiet FYP.

In my opinion, the lack of music from UMG on TikTok is going to make the platform less engaging. Who wants to watch music videos that have been silenced?


U.S. Lawmakers Unveil Bill To Ban TikTok In The U.S.



A new bill from a bipartisan group of lawmakers, if passed, would ban TikTok in the U.S. after years of broad concern across the Trump and Biden administrations about potential Chinese government influence on the company, CNBC reported.

TikTok, owned by Chinese company ByteDance, has raised fears in the U.S. that Chinese government officials could gain access to U.S. user data under Chinese law that could compel the company to hand over information, CNBC reported. TikTok has insisted U.S. user data is safely stored outside of China, which it says would keep it out of reach of government officials.

According to CNBC, the Committee on Foreign Investment in the U.S. is in talks with the company about how to resolve some of the data concerns, though a solution has reportedly been delayed. FBI Director Christopher Wray testified before Congress that he’s “extremely concerned” about the Chinese government’s potential influence through TikTok on U.S. users.

Senator Marco Rubio (Republican – Florida) introduced bipartisan legislation to ban TikTok from operating in the United States. U.S. Representatives Mike Gallagher (Republican – Wisconsin) and Raja Krishnamoorthi (Democrat – Illinois) included companion legislation in the U.S. House of Representatives.

The legislation is titled: “Averting the National Threat of Internet Surveillance, Oppressive Censorship and Influence, and Algorithmic Learning by the Chinese Communist Party Act (ANTI-SOCIAL CCP Act)”. The description of the legislation states that it would protect Americans by blocking and prohibiting all transactions from any social media company in, or under the influence of, China, Russia, and several other foreign countries of concern.

ArsTechnica reported that the ANTI-SOCIAL CCP Act is designed to block and prohibit all transactions by social media companies controlled or influenced by “countries of concern.” The legislation specifically names TikTok and owner ByteDance as existing as national security threats.

According to ArsTechnica, if the legislation is passed, its provisions would also extend to any social media platform controlled by other U.S. foreign adversaries, including Russia, Iran, North Korea, Cuba, and Venezuela.

Engadget reported that while the sponsors of the bill characterize the measure as bipartisan, it’s not clear the call for a TikTok ban has enough support to clinch the necessary votes and reach Biden’s desk. To some degree, Engadget wrote, the ANTI-SOCIAL CPP Act is more a signal of intent than a practical way to block TikTok.

There is no way to know, for certain, whether or not this bill will become law. Personally, I think it is a good idea to prevent lawmakers from having TikTok on their devices, especially if there are valid concerns about TikTok collecting data through its app.


Trump “Approved the Deal in Concept” Between TikTok and Oracle



One day after the U.S. Department of Treasury stated that WeChat and TikTok would be prohibited in the United States, President Donald Trump has “approved the deal in concept”. The more I read about This situation, the murkier it gets.

The U.S. Department of Treasury posted a new statement:

The President has reviewed a deal among Oracle, Walmart, and TikTok Global to address the national security threat posed by TikTok’s operations. Oracle will be responsible for key technology and security responsibilities to protect all U.S. user data. Approval of the transaction is subject to a closing with Oracle and Walmart and necessary documentation and conditions to be approved by CFIUS.

Bloomberg has reported the following: “I approved the deal in concept,” Trump told reporters Saturday as he left the White House for a campaign rally in Fayetteville, North Carolina. “If they get it done, that’s great. If they don’t, that’s OK too.” I have no idea what President Trump means by that.

According to Bloomberg, the new company will be called TikTok Global. It has agreed to funnel $5 billion new tax dollars to the U.S. and set up an education fund, which Trump said would satisfy his demand that the U.S. government receive a payment from the deal.

However, Reuters has reported that ByteDance was not aware that this deal involved a $5 billion education fund. On a social media post, ByteDance said it was the first time it had heard that news.

It gets even stranger. The Wall Street Journal reported that ByteDance would retain roughly 80% ownership of TikTok Global “according to people familiar with the situation”. Because ByteDance is about 40% owned by U.S. investors, the new company can be described has having majority American ownership. To me, it sounds like TikTok Global might remain connected to ByteDance despite this deal.

Bloomberg also reported that TikTok promised to hire an additional 15,000 jobs, more than the 10,000 positions the company already pledged to fill earlier this year. It appears that TikTok Global will be an independent company. And that TikTok Global “will likely” be headquartered in Texas.

TikTok stated that the proposal between TikTok, Oracle, and Walmart “will resolve the security concerns of the US Administration and settle questions around TikTok’s future in the US”.

How is Walmart connected to this deal? CNBC reported that Walmart said it has tentatively agreed to purchase a 7.5% stake, and CEO Doug McMillon would serve as one fo the five board members of the newly created TikTok Global company.

In a press release, Oracle announced that it was chosen to become TikTok’s secure cloud technology provider. Oracle said this decision by TikTok was heavily influenced by Zoom’s recent success in moving a large portion of its video conferencing capacity to the Oracle Public Cloud.


Oracle Confirms Deal with ByteDance



Yesterday, Microsoft announced that its bid to buy TikTok from ByteDance had been rejected. It had been reported that ByteDance selected Oracle to be its technology partner for U.S. operations, but it was hard to confirm. Today, Oracle provided a statement:

Oracle confirms Secretary Mnuchin’s statement that it is part of the proposal submitted by ByteDance to the Treasury Department over the weekend in which Oracle will serve as the trusted technology provider. Oracle has a 40-year track record providing secure, highly performant, technology solutions.

CNBC reported that this deal still needs U.S. government approval.

The executive order that President Trump signed on August 14, 2020, required ByteDance to divest itself from Musical.ly (now known as TikTok). It must do so within 90 days of the signing of the executive order. Any data obtained or derived from the TikTok application or Musicial.ly application derived from users in the United States must be destroyed.

Later, CNBC reported that, according to people familiar with the matter, the proposal between ByteDance and Oracle would keep TikTok together under ByteDance’s operational control. Oracle will be a trusted technology partner who will store and secure the data within U.S. premises. TikTok said it is planning to disclose its algorithm to third parties.

ByteDance has submitted a proposal that avoids selling the U.S. assets or all of TikTok, CNBC reported. This doesn’t match the requirements in the executive order. That could mean that TikTok will soon have to close down within the United States. The longer this goes on, the messier it gets.