Tag: tiktok

TikTok parent settles lawsuit over its collection of minors’ personal data

TikTok parent ByteDance has agreed to settle a class action suit for $92 million. The popular short-form video app allows users to take 15-second or one minute videos (by stringing together four 15-second clips). Popular with teens, content usually includes pranks, lip syncing, dancing, and more. According to the lawsuit, TikTok “infiltrates its users’ devices and extracts a broad array of private data including biometric data and content that defendants use to track and profile TikTok users for the purpose of, among other things, ad targeting and profit.” In other words, the court documents accuse ByteDance of using TikTok to collect user data from its teenage users.

The settlement still requires approval from the court. In a statement, TikTok said, “While we disagree with the assertions, rather than go through lengthy litigation, we’d like to focus our efforts on building a safe and joyful experience for the TikTok community.” The settlement was reached after “an expert-led inside look at TikTok’s source code” according to the motion presented to the court in an attempt to get the settlement approved. The settlement of the class-action suit, filed in the U.S. District Court for the Northern District of Illinois, could end arguments over whether the app illegally collected personal data from minors including facial scans. The suit was a collection of 21 separate class-action suits that were filed for teen TikTok users and those even younger. The youngest plaintiff was 8 years old.

The plaintiff’s attorneys argued that by collecting personal data, ByteDance was able to collect biometric data allowing it to deliver more precisely targeted ads and content recommendations. In the state of Illinois, collecting this data without consent could expose ByteDance to serious punishment. As an example, last year Facebook settled a case under the same Illinois’ biometric privacy law for $650 million. The plaintiffs also charged ByteDance with storing personal data in China which might have allowed the Communist Chinese government to view it.

Last year, the Trump administration tried to force ByteDance to sell part of TikTok to U.S. companies such as Microsoft, Twitter, Walmart, and Oracle. The plan called for the creation of a new American company that would be owned by ByteDance and some U.S. firms. Among those stateside companies that showed an interest in TikTok were Microsoft, Twitter, Walmart, and Oracle. When Joe Biden won the presidential election on November 3rd, former President Donald Trump seemed to give up interest in going after TikTok. On November 12th, the U.S. Commerce Department said it would no longer enforce its order that would have forced TikTok to shut down in the states by banning American companies from hosting the site and delivering content to the app. The anti-TikTok hysteria started last summer when then Secretary of State Mike Pompeo first mentioned a possible U.S. ban to the media.

As of the first week of this month, TikTok is estimated to have 80 million monthly users in the United States according to Wallaroo. 60% are female, 40% are male. Those age 16 through 24 make up 60% of stateside TikTok users while 26% are 25 through 44 years old. 80% of users fit in the range of 16 to 34 in age while 60% of American TikTok users are Gen Zers. The app reportedly grossed $500 million from the U.S. alone last year.

Globally, an estimated 1.1 billion people use TikTok each month. Sensor Tower states that the number of downloads of the TikTok app world wide is 2.6 billion. Last month, the app generated 62 million installs globally; just a year earlier, TikTok set a record for an app during a quarter with 315 million downloads. Allegedly, the app has been paying influencers $500 to open an account.

With a new administration in place, things look rosier for TikTok in the states even though President Biden has not commented on whether he will continue to treat Chinese tech firms as national security threats.

February 26, 2021

US President Joe Biden temporarily lifts ban on TikTok and WeChat

What could come as a big relief to Chinese tech companies banned in the US, newly elected President Joe Biden has temporarily halted legal action against Chinese social media apps TikTok and WeChat, which could have been banned in the United States.

Outgoing president Donald Trump had sought to ban both apps, claiming they were a national security threat. However, the courts had temporarily blocked the White House’s attempted ban, and the presidential election had put the issue in the back burner.

Both companies had taken legal action against the proposed bans.

The new administration has now asked for an “abeyance” – or suspension – of proceedings while it revisits whether the apps really pose a threat.

What the delay means is that both apps can continue to operate in the US while new staff at government agencies “become familiar with the issues in this case”, according to the legal documents.

Trump had claimed that the spread in the US of mobile apps developed and owned by Chinese firms threatened “the national security, foreign policy, and economy of the United States”.

Messaging app WeChat has more than one billion users worldwide but says the US only accounts for 2% of its revenue. Video sharing app TikTok has about 800 million users worldwide, of which 100 million are in the US.

The app’s owner, ByteDance, has been in talks with software company Oracle and supermarket giant Walmart to finalize a deal that would see TikTok’s US assets shifted into a new entity, to avoid a ban in the country.

An earlier court filing had said the US Commerce Department was reviewing whether Trump’s claims about TikTok’s threat to national security justified the attempts to ban it from smartphone app stores and deny it vital technical services.

The US Commerce Department had blacklisted over 70 Chinese tech companies, preventing them from buying US-made chips and components. The companies including Chinese telecom giant Huawei, were added to the United States’ “entity list” due to national security concerns.

February 19, 2021

TikTok could be forced to stop operating in the U.S. following a hearing scheduled for next month

a U.S. judge said today that he will hold a hearing on November 4th-the day after election day-to decide whether the U.S. government can ban transactions with TikTok. The popular short-form video app is owned by ByteDance, a Chinese manufacturer that the Trump administration fears is passing on personal and corporate data to Beijing. An executive order signed by the president in August ordered ByteDance to divest itself of TikTok’s U.S. operations or have it removed from app stores in the states.

At first, the president gave a thumbs up to a deal that would create a new company called TikTok Global that would be 80% owned by ByteDance and 20% owned by U.S. firms Oracle and Walmart. The plan was for TikTok Global to go public via an IPO. Since the president had earlier mused about the U.S. Treasury getting paid for the country’s participation in a TikTok deal, we wonder how the distribution of the shares would be handled with millions of dollars of possible profits at stake. Talks between all of the parties involved continuing.

Meanwhile, a preliminary injunction issued by U.S. District Judge Carl Nichols on September 27th prevented the U.S. government from forcing the Apple App Store and Google Play Store from removing their listings for TikTok. The latter is not even close to being out of the woods in the states. First of all, the current injunction is temporary and another Trump-signed executive order against TikTok and ByteDance takes effect on November 12th. This order will shut down TikTok in the U.S. if there is no deal to divest the popular app by then. According to a schedule released by the court, no ruling on any legal matter before the court in relation to TikTok will be issued until late next month at the earliest.

What’s holding up the deal are questions about majority ownership of the new company; additionally, China needs to approve the transaction and the country now bans the export of Chinese-made algorithms to other countries. TikTok uses such an algorithm to determine what video subscribers can see. This technology reportedly would not be included in any deal between ByteDance, Oracle, and Walmart.

TikTok is beloved by many teens who use the app to create 15-second and 60-second videos of lip-synchs, dances, pranks, and more. During the pandemic, teens stuck inside their homes turned to the app to give them something to do. In the states, TikTok has 50 million active daily users and 100 million active monthly users; the latest data from app analytical firm Sensor Tower reveals that TikTok was the top-grossing app worldwide during the third quarter. It also was the most downloaded app on iOS and Android during the three months that ended in September. Consumer spending on the app rose 800% on an annual basis from July through September.

As with most Chinese tech firms that operate some sort of business in the states, the U.S. government considers TikTok and it’s parent company to be national security threats because of their perceived close ties with the Communist Chinese government. There never has been any proof that these firms (such as Huawei and ZTE) have backdoors built into their products in order to obtain personal data. In the case of TikTok specifically, the fear is that 100 million Americans could be at risk of having this information sent to a server owned by the Communist Chinese government.

October 8, 2020

TikTok asks judge to block a ban against U.S. downloads of the app

Starting this Sunday, TikTok will be removed from the Apple App Store and the Google Play Store based on an order from the Trump Administration. On Wednesday, TikTok asked a U.S. judge to block the administration’s order similar to the way a federal judge on Saturday issued a preliminary injunction that prevents the U.S. government from banning downloads of WeChat in the states.

TikTok is a short-form video app with over 50 million daily active users in the U.S. Extremely popular with teens, subscribers can create 15-second and 60-second videos. Much of the content includes lip-synchs, dances, comedy bits, and pranks. During the pandemic, TikTok became even more popular as it gave those stuck at home something to do. TikTok owner ByteDance is a Chinese company and the U.S. government fears that it is able to steal the personal data belonging to 100 million American subscribers and send it to Beijing. Thus, the Trump administration has called TikTok a threat to national security.

Downloads of TikTok were supposed to be banned in the U.S. starting this past Monday. But talks between Oracle, Walmart, and Byte Dance over a plan that would give Oracle 12.5% and Walmart 7.5% of a new company called TikTok Global was considered a step in the right direction. Thus, the Commerce Department decided to give TikTok an additional week to get the deal done. TikTok Global would be an American company 80% owned by ByteDance, and President Donald Trump has already given his blessing to this arrangement.

In the papers that were filed in court on Wednesday, TikTok said that it is not a national security threat. In fact, TikTok said that the restrictions that the Trump administration want to be placed against it “were not motivated by a genuine national security concern, but rather by political considerations relating to the upcoming general election.” If the order against it isn’t blocked by the court, TikTok says, “hundreds of millions of Americans who have not yet downloaded TikTok will be shut out of this large and diverse online community – six weeks before a national election.”

Chinese State media is not happy about the deal between Oracle, Walmart, and Byte Dance. China Daily and the Global Times said yesterday that there was no reason for a deal to be signed. The papers said that the transaction being discussed is based on bullying and extortion by the U.S. Chinese state news agency Xinhua said on Wednesday that the national security concerns that the U.S. consistently brings up are bogus. The papers wrote, “It is time that other countries saw through the outrageous farce of the TikTok drama, knew what is really at stake, and joined hands to oppose such blatant robberies and maintain a fair global business environment.”

ByteDance has also applied for a tech export license. The application was made through Beijing’s municipal commerce bureau and ByteDance is awaiting a decision. Last month, for the first time in 12 years, the Chinese government updated the list of technologies that it can ban from export. On that list is the algorithm used by TikTok that determines which videos users get to see. Developed in China, the algorithm cannot be exported out of China which gives the Communist Chinese government some control over the deal that is being worked out between ByteDance, Oracle, and Walmart. There have been some conflicting statements between the companies over the terms of the deal they each reached with the White House which means that we could remain extremely far away from a deal being announced. But again, there is the deadline to think about and once again those in the states who want to download TikTok on their mobile devices might have only a few days to do so. In November, U.S. subscribers might be forced to give up the app forever.

September 25, 2020

Trump claims to have a deal in concept with Oracle, Walmart, and TikTok

U.S. President Donald Trump told reporters gathering to see him off to a campaign rally, that he has approved “in concept” Oracle’s bid for the U.S. operations of TikTok. The short-form video app, owned by China’s ByteDance, has been accused by the Trump administration of being a national security threat because it could pass along personal data from U.S. customers to the Communist Chinese government in Beijing. Trump signed an executive order that forced ByteDance to divest itself of TikTok’s U.S. operations this coming Monday, September 21st

Last week, after several U.S. companies had expressed interest in TikTok such as Microsoft, Oracle, and Walmart, Oracle’s plan was given the nod by ByteDance. However, the administration felt that the plan didn’t go far enough to protect them better than 50 million active U.S. TikTok users. As a result, the U.S. said that it would ban downloads of TikTok in the states starting on Monday morning. Those who have already downloaded the app before Monday would be allowed to continue using it until November 12th unless a deal was approved by the U.S. But everything might have changed following this afternoon’s announcement. What isn’t clear at this point is what the president means when he says that a deal has been approved “in concept.”

While things are still up in the air at this hour, Trump says that the deal will also include Walmart and hinted that TikTok would be “totally controlled” by Oracle and Walmart, something that he repeated several times this afternoon. “I have given the deal my blessing,” the president said. “If they get it done, that’s great. If they don’t, that’s okay, too.” Previously, the president wanted the companies involved in acquiring TikTok’s U.S. operations to make a payment to the U.S. Treasury. But such a deal would be illegal, something that Trump was not aware of. Still, the president spoke with Oracle Chairman Larry Ellison and Walmart Inc. Chief Executive Officer Doug McMillon on Friday, telling both executives that he still wanted a cash payout for the U.S. government.

A new company called TikTok Global will be created, according to those in the know, and it will help create a $5 billion fund for U.S. education. Discussing this contribution, Trump stated that “They’re going to be setting up a very large fund. That’s their contribution that I’ve been asking for.” The new TikTok Global will probably be headquartered in Texas and 25,000 people will be hired according to the president. But that figure could not be independently verified. Facebook had 45,000 employees last year while Twitter had 4,900 employees. There is speculation that TikTok Global will hold an IPO and go public within the next year. The president said about TikTok Global, “It will have nothing to do with China, it’ll be totally secure, that’ll be part of the deal. All of the control is WalMart and Oracle, two great American companies.”

ByteDance will retain TikTok’s algorithm which is used to decide which videos are available to certain TikTok users. China recently announced a regulation that prevents other countries from using any algorithm created in the country. Oracle will get full access to review TikTok’s source code and any updates to make sure that there are no backdoors involved that could be used to steal U.S. subscribers’ personal data.

TikTok has been a popular destination for teens and others looking to pass time during the pandemic. Users can create 15 or 60-second videos showing lip-synching, dancing, pranks, protests, and more. The app has been installed over two billion times from the App Store and the Google Play Store.

September 22, 2020

TikTok picks Oracle over Microsoft as possible candidate

With Tuesday’s deadline forcing TikTok parent company ByteDance to divest itself of the short-form app’s U.S. operations or get banned in the states, Reuters reports that a group led by U.S. tech firm Oracle has been chosen by TikTok to buy the U.S. version of the very popular app for an undisclosed amount. Just before Oracle was announced as the winner of the contest, Microsoft said that it had been informed by ByteDance that TikTok would not be sold to the software giant. The company was originally the front runner in a deal that was estimated to be valued at $20 billion dollars and up.

Walmart was also expected to be part of the Microsoft bid and it is unclear whether the retailer still has an interest in TikTok. In a statement announcing that it is bowing out of the battle for the U.S. operations of TikTok, Microsoft said, “We are confident our proposal would have been good for TikTok’s users while protecting national security interests. To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combatting disinformation, and we made these principles clear in our August statement. We look forward to seeing how the service evolves in these important areas.”

TikTok, with over 2 billion installs worldwide, has 100 million monthly users in the states, up from 11 million in early 2018. The app, which has a large community of teenage users, shows community created videos of 15 or 60 seconds in length. Content includes lip-syncing, pranks, dancing, and more. During the pandemic, when teens and others were locked up in their homes, TikTok becomes even more popular than ever. And that popularity got the Trump administration worries that the Communist Chinese government could obtain personal information from TikTok users and send it to Beijing. ByteDance says that the U.S.operations of TikTok have only two servers in operation with one in the states and the other in Singapore. The next step requires the Committee on Foreign Investment in the U.S. (CFIUS) and the White House to get approval for the deal. People familiar with the transaction say that it should satisfy fears that some participants had about the security of data obtained by TikTok in the U.S.

China almost threw a last-second issue into the deal when the Chinese government added new export restrictions that banned the U.S. from receiving certain information created by artificial intelligence. These algorithms are used to determine which videos TikTok users get to see and are considered the app’s “secret sauce’” they were believed to be part of the negotiations of the deal. President Trump announced an executive order back on August 6th, giving ByteDance 45 days to divest TikTok before demanding that its U.S. operations be banned. The White House considers the app to be a national security threat.

Microsoft, as we mentioned earlier, was originally the front runner and had decided to take on Walmart as a partner. The original plan called for both to acquire TikTok’s operations in the U.S. along with those in Australia, Canada, and New Zealand. For the deal to close, ByteDance will need to get approval from both the U.S. and Chinese governments.

This isn’t the first time that the U.S. government has gotten itself involved in a messy takeover battle involving China. In March 2018, the president blocked Singapore chipmaker Broadcom from purchasing Snapdragon chip designer Qualcomm for $117 billion. The U.S. was reportedly concerned that the deal would weaken Qualcomm thus giving power to the Chinese. A few months later, Qualcomm’s bid to acquire Dutch company NXP Semiconductors NV was blocked by Chinese antitrust regulators.

September 15, 2020

TikTok in talks to avoid a full sale of its U.S. operations

TikTok parent ByteDance has to divest itself of the app’s U.S. operations by September 15th or else the popular short-form video app will be banned in the states. The U.S. is concerned that because of perceived ties to the Communist Chinese government, TikTok users could have their personal information obtained by the Chinese. Thus, President Donald Trump issued an executive order forcing TikTok’s parent to get rid of the app. Still, ByteDance denies that the security of American TikTok users is at risk. In fact, ByteDance says that the only servers used by TikTok for its U.S. subscribers are in the U.S. and Singapore.

Over two billion times TikTok has been installed from the App Store and the Google Play Store. 100 million users in the states and 800 million globally use the app to create 15 to 60-second videos featuring lip-syncing, pranks, dancing, DIY clips, and more. Microsoft was one of the leading candidates to buy TikTok and other possible buyers include Twitter, Oracle, and Walmart. As recently as two weeks ago, ByteDance said that a deal was close to being announced and Kevin Mayer gave up his position as CEO. Mayer came to TikTok from Disney where he worked on the Disney+ streaming service. At the time, the move was seen as an attempt by ByteDance to inject some Americana into the app.

But things have apparently changed and the U.S. government and ByteDance are having discussions about an alternative that would allow ByteDance to avoid a full divesture of TikTok’s U.S. operations. The U.S. had to rethink its demands after China put restrictions on the export of its AI technology; this could have a negative impact on the sale of the app because it might not allow TikTok to include its important algorithms in any deal with a U.S. firm. If the algorithms are not included, the purchase of TikTok becomes less attractive.

ByteDance has been trying to convince President Trump that he would be taking a huge political risk if the app is shut down. That’s because TikTok users-surprisingly-are more conservative than thought. Thus, forcing the app to shut down could be upsetting to voters that the president is counting on. But that view of TikTok seems out of touch with reality. After all, a large number of teenage subscribers ordered tickets to the president’s rally in Tulsa, Oklahoma, and didn’t show up in an effort to embarrass him with a plethora of empty seats.

Regardless of which political party favors TikTok, time is running out. The bottom line is that if no deal can be salvaged in less than five days, the president might be forced to accept a deal that would be a far cry short of what he was hoping for. For example, one option could be a restructuring of TikTok that would have it take on an American partner to keep its data secure and to take a minority stake in the company. Still, the president doesn’t back down easily and with his current hatred of China because of the coronavirus, Trump might still hold out for a divestiture of the app. His base would surely see a partial victory as a critical victory against China nonetheless.

For now, the Treasury Department “is focused solely at this time on discussions associated with the sale of TikTok in accordance with the August 14 divestiture order signed by the President.”

September 11, 2020

TikTok says it is close to announcing its sale following the departure of its CEO

When TikTok hired Kevin Mayer to be CEO in May, some viewed it as a ploy, a stunt if you will. That was due to the fact that the short-form video app was being attacked by the U.S. government for having a parent corporation based in China and Mayer had been working for Disney’s streaming service, Disney+. Yes, nothing screams Americana more than Disney and its iconic cartoon characters like Mickey M-O-U-S-E, Donald Duck, and Goofy.

But as the great Robert Zimmerman (you probably know him as Bob Dylan) once sang, “you don’t need a weatherman to know which way the wind blows.” Mayer knew that his days at TikTok were probably numbered since U.S. President Donald Trump was forcing ByteDance, the Chinese firm that owns TikTok, to divest the latter’s U.S. operations by September 15th or face a nationwide ban. Mayer composed a letter to his staff before departing in which he said that the CEO’s role at TikTok was expected to change dramatically. The Wall Street Journal saw a copy of the note which said, “I understand that the role that I signed up for—including running TikTok globally—will look very different as a result of the U.S. administration’s action to push for a selloff of the U.S. business. I’ve always been globally focused in my work, and leading a global team that includes TikTok U.S. was a big draw for me.”

The plan was for Mayer to announce his departure at the same time TikTok announced a sale. However, word of Mayer’s intentions leaked overnight forcing him to come clean about his intentions earlier than he had hoped. Several ByteDance staffers said that they were stunned by Mayer’s move and said that they didn’t see it coming.

As with many Chinese tech companies trying to operate in the U.S., the current administration accuses TikTok of being a national security threat because it might pass along to Beijing data obtained about U.S. consumers and corporations. ByteDance says that TikTok uses only two servers to store personal data with the main one in the U.S. and a backup server housed in Singapore.

But Mayer’s departure isn’t even the top story involving TikTok this morning. That’s because CNBC reports that a deal to sell the app’s operations in the U.S., Canada, Australia, and New Zealand could be announced as soon as next week. Those in the know say that Microsoft and Oracle are the leading contenders to close on a deal and that a final decision has yet to be made. Earlier, Twitter had explored making a bid as did a partnership made up of Walmart and SoftBank. The value of any deal could be in the range of $20 billion to $30 billion, but sources say that a final price has not been agreed on.

In an update to its story, CNBC quoted Walmart as saying that it might partner with Microsoft on a deal for TikTok. W Walmart spokesman said, “The way TikTok has integrated e-commerce and advertising capabilities in other markets is a clear benefit to creators and users in those markets. We believe a potential relationship with TikTok U.S. in partnership with Microsoft could add this key functionality and provide Walmart with an important way for us to reach and serve omnichannel customers as well as grow our third-party marketplace and advertising businesses. We are confident that a Walmart and Microsoft partnership would meet both the expectations of U.S. TikTok users while satisfying the concerns of US government regulators.”

TikTok has become very popular and was one of the top apps on the App Store and the Google Play Store even before the global pandemic helped pump up its numbers even more. With a large number of teens and pre-teens stuck inside during the peak of the summer, many turned to the app to pass the time. Users can record videos of 15 seconds or 60 seconds in length and content includes lip-syncs, dances, pranks, comedy, and more. In the states, TikTok has 100 million users with 800 million using the app worldwide. It has been installed more than 2 billion times from the App Store and the Google Play Store.

If no deal is reached and the U.S. government bans TikTok, 1,500 Americans will lose their jobs. TikTok also noted that as many as 10,000 Americans would lose the opportunity to be considered for new job opportunities working for the app.

August 31, 2020

TikTok to battle executive order banning U.S. firms from having transactions with the app

Short-form video app TikTok will begin a legal challenge to President Donald Trump’s campaign to ban the popular app in the states. TikTok has over 100 million users in the U.S. and has been installed over 2 billion times worldwide from the App Store and the Google Play Store. Favored by teens, TikTok has given bored kids something to do while stuck at home during the pandemic. Content on TikTok lasts 15 or 60 seconds and includes members lip-syncing to hit songs, dancing, doing comedy bits, and protesting hot button issues.

An executive order signed by Trump on August 14th ordered TikTok’s Chinese based parent DanceByte to sell off its U.S. operations in 90 days. In his order, Trump said that there is “credible evidence that leads me to believe that ByteDance … might take action that threatens to impair the national security of the United States.” Some U.S. companies that have announced an interest in buying the app’s U.S. operations include Microsoft, Oracle, and Twitter. Apple was rumored to have an interest in TikTik but later denied it. Trump has hinted that any purchase of TikTok by a U.S. company might need to include a payment to the U.S. government adding up to a “substantial portion” of the transaction amount. Considering that TikTok’s value has been estimated at a figure as high as $150 billion, the U.S. portion of the business alone might generate a large sum for the U.S. government.

TikTok plans on challenging an earlier executive order signed by the president on August 6th that requires Commerce Secretary Wilbur Ross to draw up a list of transactions involving ByteDance that should be banned after 45 days. The order relied on the International Emergency Economic Powers Act and thus deprived it of due process. TikTok also will challenge the White House’s defining TikTok as a national security threat.

However, even if ByteDance is able to challenge the August 6th order, it will still have to divest itself of TikTok’s U.S. operations or face a ban. That’s because the August 14th order does not face a judicial review. Under the earlier order, U.S. companies could be blocked from advertising on the site, TikTok employees in the states might not be allowed to get paid, and landlords might even be forced to evict TikTok workers from any property they leased or rented to them. Additionally, the U.S. could force TikTok to be defended by attorneys from outside of the country.

Earlier this month, TikTok said that it might fight back against the Trump administration by arguing that the executive order was rushed out, blindsiding the company. Normally, a company being targeted by the Feds receives a subpoena and has a confidential meeting with the DOJ. Where TikTok plans on filing its lawsuit as soon as Monday is unknown. While the company previously said that it would explore its legal options, employees were said to be considering their own separate lawsuit.

If TikTok is banned in the U.S., there could be some backlash by users of voting age who might feel compelled to vote this November. Meanwhile, other apps have already started to debut features similar to TikTok. For example, Instagram has already launched Reels, and a new app similar to TikTok called Clash was released months ahead of expectations.

For those wondering whether the president has the authority to issue the executive orders, White House press secretary Kayleigh McEnany said that a 1977 law allows the president to regulate interstate commerce to safeguard the country from unusual events. McEnany said, “The administration is committed to protecting the American people from all cyber threats.” She noted that apps like TikTok “collect significant amounts of private data on users.”

August 24, 2020

Leaked White House document shows how U.S. plans to hurt TikTok financially

With short-form video app TikTok about to be banned in the U.S. starting in the middle of next month, a Harris Poll that was shared with USA Today found that 64% of adult Americans are against the presidential executive order that will end the app’s presence in the states. The order was signed by U.S. President Donald Trump because the app’s parent company, ByteDance, is a Chinese company. Many U.S. lawmakers and members of the Trump administration believe that Chinese manufacturers use backdoors embedded in their products to capture data from consumers and companies and send it to the Communist Chinese government.

While a majority of those adults polled are against Trump’s executive order, 57% of tall Americans agreed with the move by the president to kick TikTok out of the states. However, those answering the poll were 18 years of age or older while most TikTok users are younger. The app has been installed two billion times from the App Store and the Google Play Store. Content includes lip-syncing, dancing, pranks, protests, singing, and more. During the pandemic, TikTok picked up interest from those who were stuck at home.

Microsoft has reportedly been looking at buying the North America, Australia, and New Zealand operations of TikTok although company founder Bill Gates has stated his reservations. Twitter has supposedly has had preliminary meetings with TikTok to form some sort of combination. However, this would be quite a longshot considering that the estimated valuation of TikTok is well above the $30 billion that Twitter is worth. But even if a deal with a U.S. firm is completed, the Harris Poll found that 62% of Americans would continue to believe that the app would pose a national security threat because of its ties to China. The rest of the poll saw 67% of Americans worried that the Chinese are using personal data collected by TikTok, a sentiment agreed to by 59% of TikTok users.

A document from the White House indicates how the U.S. plans to impact TikTok’s operations in the country. One way that this could happen is by disrupting the app’s operations and sources of funding. A source inside the White House verified the authenticity of the document which said, “Prohibited transactions may include, for example, agreements to make the TikTok app available on app stores … purchasing advertising on TikTok, and accepting terms of service to download the TikTok app onto a user device.” Industry analysts say that if the ban prevents TikTok from appearing in the App Store and the Google Play Store, the result would sharply damper the growth of the app.

Also facing a ban in the U.S. is messaging, social media, and mobile payment app WeChat. The latter, launched by Tencent in 2011, has over one billion users and many Chinese consumers rely on the app every single day. Trump also signed an executive order that will ban U.S. firms from doing business with WeChat. The White House document seen by Reuters is not clear on whether WeChat will indeed be banned in the states.

The U.S. ban on TikTok would take effect starting on September 16th, the same date that any WeChat ban would also begin. James Lewis, a cybersecurity expert with the Washington-based Center for Strategic and International Studies, said, “That kills TikTok in the U.S. If they want to grow, these rules are a huge obstacle.” Lewis did note that the U.S. government might not be able to prevent American TikTok fans from downloading the app from a foreign website. TikTok has 100 million users in the U.S. and has stated that data from its U.S. subscribers is stored on servers in the U.S. and Singapore and that such information would not be given to the Chinese government.

TikTok says that it plans to continue honoring ad campaigns although some corporations say that they have made plans to advertise on other apps if TikTok is shut down in America.

August 14, 2020

Twitter reportedly meets with TikTok about a combination

People who make their way around Twitter know a way that they can see if the Twitterverse hates a particular tweet. It’s called getting ratio’d. It’s quite simple really; if the number of replies vastly outnumbers a tweet’s likes and retweets, it means that the content of that tweet is disliked by Twitter subscribers. The messaging app recently tested changing some of the terminology associated with the app and also made it easier to figure out a particular tweet’s ratio.

During the test, retweets with comments were called Quotes. In an email sent to The Verge, a Twitter spokesman said, “A few months ago, we’ve made Retweets with Comments more visible when you tap to see Retweets on a Tweet. This is available to everyone. Now, we’re testing making Retweets with Comments accessible directly on the Tweet and new language (Quotes) to see if this makes them easier to access and more understandable.”

Back in May, Twitter tested a Retweets with comments counter on some iOS devices. But now, the new test adds the Quote counter to the stats on the bottom of a tweet. Twitter, like most social media sites, has been under attack for the polarizing and baiting comments left by many users. Twitter said in the past that it wants to add features to its UI to improve conversations between users.

Speaking of Twitter, last Sunday it has had preliminary discussions with TikTok about a potential combination. The short-form video app has until the middle of next month to find a partner willing to take the U.S. operations of the app off the hands of its parent firm ByteDancer. That’s because the latter is a Chinese tech firm which automatically raises suspicions by the U.S. government. An executive order signed by the president last week calls the company a threat to national security and notes that being owned by a Chinese firm means that it is potentially allowing China to track the locations of Federal employees and contractors, build dossiers of personal information for blackmail, and conduct corporate espionage.”

Microsoft is seen as the leading candidate to take over the U.S. operations of TikTok and has the wherewithal to make such a purchase which could cost the software giant tens of billions of dollars. It isn’t clear how Twitter would be able to finance any deal. The company’s stock market capitalization is approximately $29 billion compared to Microsoft’s $1.6 trillion valuations. As of June, Twitter had $7.8 billion in cash and securities compared to $136 billion for Microsoft. TikTok has been installed over two billion times from both the Apple App Store and the Google Play Store. Globally, TikTok has 800 million active users with 100 million in the states. During the pandemic, TikTok gave teens, pre-teens, and even parents stuck inside a chance to release some steam by producing 15-second or 60-second videos. Typical content includes lip-syncing, dancing, playing comedic pranks, and more.

Twitter once ran an app that was somewhat similar to TikTok. Vine was developed in 2012 and was purchased by Twitter during the following year; the app allowed users to create video clips lasting six or seven seconds and content was shared over Facebook and Twitter. In 2016, Instagram Video was launched allowing users to record longer 15-second clips and many Vine users started to move on to Instagram, Snapchat, and other apps. Vine hung around in various forms with the last iteration of an app using the Vine name closed in 2019.

August 11, 2020

Instagram launches Reels, competition for TikTok

Short-form video app TikTok has 41 days to complete a deal with Microsoft or any other U.S. company or else President Donald Trump has said that he will ban the app in the U.S. That’s because TikTok’s parent company, ByteDance, is based in China and a law in the country allows the communist government to order tech firms to collect intelligence from consumers and companies in the states and send it to Beijing. This is the same reason why outfits like Huawei and ZTE are considered national security threats in the states.

NPR reported that twenty separate lawsuits accusing TikTok of capturing information about users’ facial characteristics, locations, and close contacts were merged into one class-action suit. The plaintiffs are minors who use the app and the suit states that the personal data collected by TikTok is sent to servers in China. ByteDance says that the servers it uses for TikTok are located in the U.S. with backups in Singapore. Experts for the plaintiffs said in the filing that personal data collected by TikTok is “under the control of third-parties who cooperate with the Chinese government. Such information reveals TikTok users’ precise physical location, including possibly indoor locations within buildings, and TikTok users’ apps that possibly reveal mental or physical health, religious views, political views, and sexual orientation.”

With talk of a possible ban, many of the 100 million TikTok users in the U.S. have been looking for a new app to record their lip-syncing, dancing, singing, comedy bits, and protests. One app called Clash launched months early so that it could sign up TikTok members worried about losing the app to a ban. Instagram announced the launch of its short-form video feature called Reels. Instagram says, “Reels invites you to create fun videos to share with your friends or anyone on Instagram. Record and edit 15-second multi-clip videos with audio, effects, and new creative tools. You can share reels with your followers on Feed, and, if you have a public account, make them available to the wider Instagram community through a new space in Explore. Reels in Explore offers anyone the chance to become a creator on Instagram and reach new audiences on a global stage.”

To use Reels, open Instagram and touch the camera icon in the upper left of the screen. On the bottom of the page, tap the Reels tab to get started. On the left side of the screen, you’ll see icons for Audio, Speed, Effects, and Timer. With the Audio setting, you can search for a song from Instagram’s music library or use your own by creating a reel with original music. If you share an original song on Reels, you will get credit for it. And your musical creation can be used by others by selecting “Use Audio” from your Reel.

With AR Effects you can pick one from Instagram’s effect gallery which also includes effects made by creators all over the planet. This will allow you to create multiple-clips with different effects. If you are recording a Reel, you can record it hands-free by tapping on Timer and Countdown. A 3-2-1 countdown will alert you when your device has started recording.

Perhaps one of the most important features on Reels is Align. This allows you to line up objects from your previous clips to help you record seamless transitions for outfit changes and more. And Speed lets you speed up audio and video. Reels can be recorded one at a time or all at once. Instagram says, “Record the first clip by pressing and holding the capture button. You’ll see a progress indicator at the top of the screen as you record. Stop recording to end each clip.”

If you have a public account, your Reel can be shared in Explore or over your feed. If you use a private account, only your followers will be able to view your content from your feed. Original audio can’t be shared with this setting and others cannot share your Reels with others who don’t follow you. And a Reel can also be shared like a Story which means that it will disappear after 24 hours.

“Reels in Explore showcases the best of trending culture on Instagram. Discover an entertaining selection of reels made by anyone on Instagram, in a vertical feed customized for you. If you love a Reel, you can easily like, comment or share it with your friends. You’ll also see some Reels with a “Featured” label. If your Reel is featured in Explore, you’ll receive a notification. Featured Reels are a selection of public Reels chosen by Instagram to help you discover original content we hope will entertain and inspire you.

Reels gives people new ways to express themselves, discover more of what they love on Instagram, and help anyone with the ambition of becoming a creator take center stage.”

August 7, 2020

Apple denies report claiming that it is interested in buying TikTok

U.S. President Donald Trump is giving Microsoft until the middle of September to work out a deal with China’s ByteDance to own and operate TikTok in the United States, Canada, Australia, and New Zealand. The administration is concerned that Chinese tech firms collect data from U.S. consumers and corporations and send that data to a server in Beijing. It is this possible tie to the communist Chinese government that has led the U.S. to call companies like Huawei and ZTE national security threats. This could be the reason why the president prefers to see the short-form video app in U.S. hands or banned from the U.S. altogether.

A class-action lawsuit filed by parents of over 70 U.S. children who use the app claim that it gathers data including facial features, the kids’ locations, and their contacts. The suit alleges that this information is quietly sent to servers in China, although the Chinese government is not specifically mentioned.

While Microsoft seems to be the only U.S. company that has expressed interest in shelling out the big bucks to buy TikTok, Axios reported that other U.S. firms are believed to be interested in the app, which has been installed over 2 billion times from the Google Play Store and the App Store. One of the companies that are reportedly looking at a deal to buy TikTok is Apple.

Axios’ Dan Primack wrote that he has been told by multiple sources that Apple is interested in TikTok. He did note that none of these sources works inside Apple and pointed out that TikTok’s app works on both iOS and Android. Primack later wrote that he was told by Apple that there are no discussions underway with ByteDance and that the company isn’t interested in TikTok. A purchase of TikTok would certainly cost Apple more than the $3 billion that the tech giant spent to purchase Beats Audio back in 2014. That is the largest acquisition ever made by Apple which usually restricts purchases to smaller companies with a technology that is one to two years away from being used in a product like the iPhone.

While TikTok would seem to fit into Apple’s largest business segment, Services, the apps in that unit generate revenue from recurring subscription fees paid by the user. Instead, TikTok is a free app supported by advertisers. Even if we were to assume that Apple’s denial of any interest in TikTok was to be a negotiation ploy, it is hard to see how the company and its customers would benefit from such a purchase.

By putting a September 15th deadline on completing a deal, Trump might have pained himself into a corner. Because of TikTok’s valuation, this is not an easy deal to complete. If September 15th comes and goes without a transaction taking place, the president is going to be forced to ban an app that is immensely popular even among those of voting age. Meanwhile, the implications of a deal are having effects everywhere. In China, TikTok parent ByteDance is being branded as a traitor for agreeing to sell TikTok to a U.S. firm. While TikTok itself doesn’t operate in China, ByteDance is a Chinese firm.

In the states, TikTok users are jumping to rival platforms. Short-term video app Clash launched months earlier than planned to take advantage of the confusion surrounding TikTok and Instagram’s Reels is also close to launching. Snapchat is taking on TikTok with a service it is testing, and there are other apps already available such as byte and Triller. A 15-year-old TikTok user named Kyle Thomas told the Journal, “I spend all of my time on it. As much as it is my job, it’s also my entertainment. If I can’t have it, I wouldn’t be sure what to do.”

Yesterday, President Trump made a comment about the U.S. Treasury collecting a percentage of any deal that results in the purchase of TikTok by a U.S. company. White House economic adviser Larry Kudlow said, “It may be that the president was thinking because the Treasury has had to do so much work on this, there are a lot of options here. I’m not sure it’s a specific concept that will be followed through…Regarding fees or anything like that, all that remains to be seen.” Having the U.S. government profit from what the Chinese government sees as a forced sale of TikTok is sure to make the current relationship between the two economic powers much worse.

August 6, 2020

Messaging app plans to challenge TikTok

When Snapchat first crossed our consciousness in May of 2012, its claim to fame was self-deleting photo messages that would disappear after 10 seconds. Eventually, Snapchat invented the “Stories” feature that Instagram and other social media apps copied. Today, Snapchat is known for its AR Lenses which can turn you into a sunglasses-wearing motorcycle cop, a dog sticking out his long tongue, and more.

And now Snapchat is planning on going head-to-head against TikTok. The latter, with over 2 billion installs from the App Store and the Google Play Store, is one of the most popular apps in the U.S. as it allows users (mostly teens, pre-teens, and a smattering of adults) to create short-form videos of 15 and 60 seconds in length. Content includes lip-syncing, dancing, comedy bits and more. Snapchat announced today that it will be testing a new feature that will allow users to have their Snaps play with music in the background. Sound familiar?

This is the perfect time for Snapchat to explore adding TikTok-esque features to the app. President Donald Trump has made it clear that the U.S. will not allow companies with possible ties to the communist Chinese government to operate in the states, and while he is allowing Microsoft to negotiate with TikTok parent ByteDance (a company based in China) to acquire the app in the U.S. and several other countries, such a transaction comes with a pretty high price tag which means that there is no guarantee that it will get done. If a deal isn’t agreed to, TikTok could get banned in the states and its 800 million global active users (100 million in the U.S.) will be searching for an alternative to the app, something that we’re sure that Snapchat understands.

Snapchat parent SNAP has licensing deals with a number of music publishers including Warner Music. The music will be available for Snapchat users to add before recording a video, or afterward. When one of the new Snaps with music is shared, the person on the receiving end will swipe up to see album art, the title of the song being played, and the name of the artist. A “Play this song link” will send the user to Linkfire’s website or to the user’s preferred streaming music platform where the entire song can be played. That could be considered an improvement over what TikTok offers; tap the “sound” link on the latter app and you’ll see other clips that use the same song. Snapchat says that the new feature is designed for sharing music with your “real friends.”

“We’re always looking for new ways to give Snapchatters creative tools to express themselves,” said a SNAP spokesman. “Music is a new dimension they can add to their Snaps that helps capture feelings and moments they want to share with their real friends.”

While Snapchat seems to be overlooked in the messaging apps category, as of last quarter it counted 238 million daily active users worldwide. It also reaches more 13-to-24-year olds in the U.S. (90%) than Instagram, Facebook, and Messenger. Even more impressive, Snapchat says that it reaches more users in the U.S. than Twitter and TikTok combined.

A Snapchat spokesman said, “We’re constantly building on our relationships within the music industry, and making sure the entire music ecosystem — artists, labels, songwriters, publishers and streaming service — are seeing the value in our partnerships.” Snapchat plans on rolling out this feature in English-speaking markets starting this fall, although it is being tested starting today in New Zealand and Australia.

Meanwhile, Instagram is about to roll out its own short-form video feature called “Reels” which is making TikTok parent ByteDancer very unhappy. In a statement late Sunday, ByteDancer accused Instagram owner Facebook of “plagiarism.” The whole statement read, “ByteDance has always been committed to becoming a global company. During this process, we have faced all kinds of complex and unimaginable difficulties, including the tense international political environment, collision and conflict of different cultures and plagiarism and smears from competitor Facebook.”

August 5, 2020