The Battle for Data: TikTok vs US Tech and the Controversy Surrounding US Politicians’ Investment
Social media platforms have revolutionized the way people communicate, share information and entertain themselves. TikTok is one such platform that has gained immense popularity among millennials and Gen Z. With its meteoric rise, TikTok has also become the subject of controversy, especially in the United States. Recently, there have been allegations of TikTok being used as a tool for espionage by China, which has raised concerns about the privacy and security of American citizens. This was followed by a Congressional hearing over the issue.
The rise of TikTok
TikTok has taken the world by storm with its unique and engaging platform that allows users to create, edit and share short-form videos with music and special effects. Launched in 2016, the app has grown exponentially to become one of the most popular social media platforms in the world, with over 1 billion active users and 2 billion downloads. According to Sensor Tower, TikTok was the most downloaded app globally in 2020, with over 850 million downloads. Morning Consult named TikTok the third-fastest growing brand of 2020, after Zoom and Peacock. Cloudflare ranked TikTok the most popular website of 2021, surpassing the tech giant google.com.
TikTok has been particularly popular among young people, with 60% of US TikTok users aged 16-24. In a survey conducted by Pew Research Center, 48% of US adults aged 18-29 reported using TikTok, making it the second most popular social media platform among this age group after Instagram. TikTok’s parent company, ByteDance, reported that the app has over 1.1 billion monthly active users globally as of 2022. TikTok has been the most popular app among Gen Z, according to Business Insider.
TikTok’s success has not gone unnoticed by the business world, with many brands and marketers using the platform to reach younger audiences and promote their products or services. In a report by eMarketer, it is projected that TikTok’s advertising revenue in the US will reach $3.12 billion by 2023, up from $500 million in 2019. The app’s powerful advertising capabilities, coupled with its vast user base, have made it a highly effective marketing tool that has the potential to drive significant growth and revenue for businesses of all sizes.
The rise of TikTok has been nothing short of extraordinary, and its impact on the social media landscape is likely to be felt for years to come. With its innovative format, personalized content recommendations, and powerful marketing capabilities, TikTok has become a force to be reckoned with in the digital age.
Allegations of espionage
Despite its rapid rise, TikTok has also attracted scrutiny from the US government, particularly about allegations of espionage. The concern is that the app is being used by China to gather intelligence on American citizens and potentially pose a threat to national security.
One of the primary concerns raised by lawmakers is the ownership structure of TikTok. The app is owned by ByteDance, a Chinese company, and as such, it is subject to Chinese laws and regulations. This has led to fears that the Chinese government could use TikTok to collect sensitive information about American citizens and potentially use it for nefarious purposes.
Albeit, experts have argued that the idea that TikTok is being used by China to gather intelligence is highly improbable. The argument put forward is that intelligence gathering is highly targeted, and it would be more efficient to focus on a smaller pool of key individuals rather than combing through a vast amount of data. Moreover, the processing power required to analyse the data of a billion users would be astronomical and unfeasible.
Some experts have argued that the allegations against TikTok are fuelled by political and economic motives rather than genuine concerns about national security. As TikTok’s popularity has grown, it has increasingly
become a threat to American tech companies, particularly Meta (formerly Facebook), which has struggled to compete with the app’s engaging content and addictive algorithm. As such, it is suggested that the allegations against TikTok are more to do with protecting American tech companies than genuine concerns about national security.
Despite these arguments, the concerns surrounding TikTok’s ownership structure and potential for espionage have not been fully assuaged. In response to these concerns, the US government has taken steps to regulate TikTok and protect American citizens’ privacy and security. In August 2020, former President Donald Trump signed an executive order that would have banned TikTok in the US if it was not sold to an American company. The order was later blocked by a federal judge, but it highlighted the government’s concerns about the app’s ownership and potential for espionage.
While the allegations of espionage surrounding TikTok have been heavily scrutinized, there is no concrete evidence to suggest that the app is being used by China to gather intelligence on American citizens. While the concerns about TikTok’s ownership structure and potential for espionage cannot be fully dismissed, it is important to note that the allegations are highly contentious and have been fuelled by political and economic motives.
US government response
The US government’s response to the allegations against TikTok has been multifaceted. In August 2020, President Donald Trump’s executive order would have banned TikTok if that has not been blocked by a federal judge, but it highlighted the government’s concerns about the app’s ownership and potential for espionage. In September 2020, the US Department of Commerce announced that it would ban new downloads of TikTok and WeChat, another Chinese-owned app, in the US. The ban was later halted by a federal judge, but it demonstrated the government’s efforts to limit Chinese-owned apps’ influence in the US. The recent Congressional hearing is a testament to the same.
The controversy surrounding TikTok is not just about the app itself; it is also emblematic of the growing tensions between China and the US. The two countries have been engaged in a trade war for several years, and the allegations against TikTok have added fuel to the fire. The controversy has also highlighted the role of technology in this conflict, with both countries using technology as a tool for espionage and cyber-attacks.
Nevertheless, the allegations against TikTok have been highly criticized, with many experts arguing that there is no concrete evidence to suggest that the app is being used by China to gather intelligence. Some have suggested that the allegations are more to do with protecting American tech companies and their diminishing dominance than genuine concerns about national security.
Furthermore, it is worth noting that many US politicians have received significant campaign contributions from American tech companies as well as politicians have made large investments in them, which could further explain their position on the matter. For instance, the largest tech companies in the US, such as Meta, Google, and Apple, have donated millions of dollars to both political parties, including to key lawmakers who have publicly criticized TikTok. This has led to accusations that these politicians are acting in the interests of these companies, rather than prioritizing national security concerns.
Competition and dominance in the tech industry
The tech industry has been dominated by American companies like Meta (formerly Facebook), Google, Amazon, and Apple for decades. These companies have a strong influence on the global economy, and they have been able to maintain their dominance through strategic acquisitions, product innovations, and lobbying efforts. However, the rise of Chinese tech companies like
TikTok has disrupted this dominance and sparked concerns about the impact on American jobs and the economy.
Many experts argue that the concentration of power in the hands of a few dominant tech companies has negative consequences for innovation, competition, and consumers. These companies can use their power to stifle competition, limit consumer choice, and protect their political interests. This has led to calls for greater regulation and oversight of the tech industry.
The competition between TikTok and Meta is just one example of this wider battle for dominance in the tech industry. TikTok has been able to attract a large user base and challenge the supremacy of American tech giants. The rise of Chinese tech companies has also fuelled concerns about the role of these companies in the global economy and the potential national security risks they pose.
It is worth noting that the allegations against TikTok have been heavily criticized by experts, who argue that there is little evidence to suggest that the app is being used by China to gather intelligence. Instead, some suggest that the allegations are more about protecting American tech companies and their diminishing dominance. This is further compounded by the significant campaign contributions made by these companies to US politicians, including key lawmakers who have publicly criticized TikTok.
Yet, regardless of the validity of the allegations, the controversy highlights the importance of transparency, accountability, and regulation in the tech industry. As the global economy becomes increasingly reliant on technology, we must address these issues and find solutions that balance innovation and progress with privacy, security, and fairness. This requires a collaborative effort between governments, industry leaders, and civil society to create a regulatory framework that ensures the benefits of technology are maximized while minimizing the potential risks.
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Ashwin Deshmukh
New Delhi
March 31, 2023.
