CTA Vice President of International Trade Ed Brzytwa discussed the sensitive topic of foreign investment transactions with U.S. Department of the Treasury Assistant Secretary for Investment Security Paul Rosen, who runs the Committee on Foreign Investment in the U.S. (CFIUS). Rosen stated that CFIUS was established almost 50 years ago and has been reauthorized by Congress many times. “The mission is to review foreign investments that come into U.S. businesses for national security risks,” he said. “We’re looking to assess who’s getting access to sensitive U.S. assets or getting control of a U.S. company.” Continue reading CES: A Look at the U.S. Security Risks of Foreign Investment

A draft agreement said to have been presented by the U.S. government to ByteDance that would let TikTok avoid a federal ban seeks “near unfettered access” to company data and “unprecedented control” over platform functions. The nearly 100-page document, reported on this week, seeks control federal officials don’t have over other media outlets — social or otherwise — raising domestic concerns about government overreach. The draft dates to summer 2022. It is not known whether it has been updated or if the secretive negotiations between ByteDance and the Committee on Foreign Investment in the United States (CFIUS) have since continued. Continue reading Plans for TikTok Containment Would Give Feds Broad Power

The Biden administration has reportedly come to the conclusion that ByteDance must sell its stake in TikTok or face the possibility of a U.S. ban. The decision comes as Congress turns up the heat on action against TikTok, which is suspected of compromising U.S. data and potentially manipulating news feeds to influence opinion. It follows a quiet, years-long assessment by the Committee on Foreign Investment in the U.S. (CFIUS), which The Wall Street Journal says “made the sale demand recently.” The Treasury Department, which oversees CFIUS, declined to comment. Continue reading ByteDance Must Sell Chinese TikTok Stake or Face U.S. Ban

A former TikTok employee has stepped forward to inform congressional investigators that the company’s proposal for protecting U.S. user data is “deeply flawed,” potentially leaving data for more than 100 million American citizens exposed to parsing by China-based entities, including parent company ByteDance and Chinese Communist Party (CCP) rulers. The allegations come at a sensitive time in negotiations with the Committee on Foreign Investment in the United States (CFIUS) to keep TikTok operating in the U.S. over the objection of a bipartisan contingent of lawmakers, who are calling for a ban. Continue reading Former TikTok Worker Tells Congress Project Texas ‘Flawed’

Regulatory pressure continues to build against TikTok and the company’s Beijing-based owner. Another state has joined the federal fight to ban the short-form video app, with Virginia this month passing legislation prohibiting TikTok and WeChat from use on state government devices. Meanwhile, on Thursday Senators Richard Blumenthal (D-Connecticut) and Jerry Moran (R-Kansas) wrote Treasury Secretary Janet Yellen — who also chairs the Committee on Foreign Investment in the U.S. — advising CFIUS  to “impose strict structural restrictions between TikTok’s American operations and its Chinese parent company, ByteDance, including potentially separating the companies.” Continue reading National Security Pressure Continues to Build Against TikTok

TikTok is taking a proactive stance to quash U.S. government concerns that user data might be collected and exploited by China, where the viral video platform’s parent, ByteDance, is based. TikTok CEO Shou Zi Chew made the rounds in Washington last week, sharing with think tanks and public interest groups his plan to prevent data on Americans from being transmitted out of the country. The strategy marks a shift for TikTok, which kept a low profile during attacks by the Trump administration and continuing pressure under President Biden. Chew is now scheduled to testify before the House Energy and Commerce Committee about security and privacy. Continue reading TikTok On the Offense in Battle to Protect Its U.S. Operations

The algorithm powering TikTok’s vaunted For You page is reportedly getting help from human collaborators. Although the personalized feed was said to be based on user interests and selections, “employees regularly engage in ‘heating,’ a manual push that ensures specific videos ‘achieve a certain number of video views,’ according to six sources and documents reviewed by Forbes.” What’s more, while the algorithm does have a say in what goes viral, staff at TikTok and ByteDance are also hand-picking specific videos to give preferential treatment, saturating their distribution throughout the user base. Continue reading TikTok Is Accused of Manually ‘Heating’ Personalization Feed

TikTok is in discussions with U.S. lawmakers about a $1.5 billion plan to reorganize its operations in order to provide more transparency and allay fears of Chinese spying and data manipulation. The talks have become more urgent in recent months as regulators at the federal and state level are threatening to ban the short-form video app on government-issued devices. TikTok parent ByteDance been negotiating with CFIUS, the Committee on Foreign Investment in the U.S. since 2019, when an investigation was opened following the Beijing-based media firm’s acquisition of Musical.ly, which it merged into TikTok. Continue reading TikTok Considers $1.5 Billion Plan to Quell Security Concerns

Brendan Carr, a commissioner of the Federal Communications Commission, is continuing his efforts to have TikTok banned, telling the Council on Foreign Investment in the U.S. in his strongest language to date that the viral short-form video app is, as a result of consumer adoption, becoming a part of the nation’s critical information infrastructure, and thus presents a national security risk due to Chinese ownership. TikTok is reportedly back in negotiations with the CFIUS, an interagency committee that reviews foreign investment, about a change of ownership that would smooth the path to ongoing U.S. operations. Continue reading FCC’s Carr Renews Call for a National Security Ban on TikTok

Executives from four social media giants defended the privacy, security and content moderation protocols of their platforms to the Senate Homeland Security Committee Wednesday. In her first appearance before Congress, TikTok COO Vanessa Pappas was grilled on whether the short-form video app shares data about American citizens with the Chinese government. ByteDance, which owns TikTok, is based in Beijing, and its potential censorship of user content was another area of concern. Questions for the group — which included representatives from Meta Platforms, YouTube and Twitter — ranged from extremists to biometrics. Continue reading TikTok on the Hot Seat at Senate Homeland Security Hearing

The Commerce Department is taking steps to shore-up federal rules against potential security risks from foreign-owned social platforms like ByteDance’s TikTok, expanding federal oversight to include apps that might be used by “foreign adversaries to steal or otherwise obtain data,” a recent filing in the Federal Register stipulates. The proposed rule allows the commerce secretary to designate certain foreign apps as security risks and force software connected to the Internet to submit to third-party auditing. Such audits could include monitoring logs that show user data as well as the parsing of source code. Continue reading Biden Administration Intends to Contain TikTok Security Risk

President Biden revoked former President Trump’s executive order banning social-networking services TikTok and WeChat — developed by Chinese companies ByteDance and Tencent Holdings, respectively — but didn’t let Chinese companies off the hook. Instead, he replaced the previous order with another that establishes a broader review of the potential security risks found in numerous foreign-controlled apps. Biden officials said the new order would create “clear intelligible criteria” to evaluate those risks. Trump’s executive order was immediately challenged in court, and Biden’s move, said analysts, is intended to withstand such a test. Continue reading Biden Introduces Broader Review of Foreign-Controlled Apps

Although ByteDance’s TikTok missed a Thursday deadline to complete its deal with Oracle and Walmart, the Commerce Department did not enforce the shutdown order, citing last month’s preliminary injunction from U.S. District Judge Wendy Beetlestone. That suit was brought by three TikTok stars who charged that the government exceeded its authority by threatening the “robust exchange of informational materials.” President Trump initiated the effort to get TikTok to divest itself of its U.S. operations based on national security concerns. Now the deadline has been extended to November 27. Continue reading Government Extends Deadline for ByteDance to Divest TikTok

ByteDance, the Chinese parent company of TikTok, asked the U.S. Court of Appeals for the D.C. Circuit for more time to work out the preliminary deal to sell its U.S. operations to Oracle and Walmart. November 12 is the deadline for the deal to be completed. The company also stated it had been in discussions with the Committee on Foreign Investments in the United States (CFIUS), but “feedback had stopped” in recent weeks despite the approaching deadline. App Annie reports that TikTok’s substantial growth is expected to continue throughout 2021. Continue reading TikTok Popularity Surge Continues as U.S. Ultimatum Looms

TikTok’s lawyers filed suit with U.S. District Judge Carl Nichols to prevent the federal government from imposing a shutdown of operations on November 12, when companies will be banned from providing Internet hosting to TikTok. An attorney stated that, “competitors have already taken advantage of the government’s highly-publicized intention to shut down the app to entice TikTok creators and users to switch platforms.” Cloud platform provider Fastly saw its shares plummet after ByteDance, owner of TikTok, spent less than predicted in Q3. Continue reading TikTok Takes Government to Court Over Potential Shutdown