The clock is ticking for TikTok as the U.S. edges closer to implementing a nationwide ban on the app. With less than a few days left until the January 19, 2025, deadline, TikTok and its parent company, ByteDance, face immense pressure to address mounting concerns over national security and data privacy. This critical juncture demands decisive action, as the platform’s future hangs in the balance.
The latest developments add a new twist to the narrative, with President-elect Donald Trump reportedly exploring options to delay the ban. This potential move could buy ByteDance additional time to negotiate a deal with a U.S. buyer, as speculated by insiders. However, the political landscape remains divided, with both the Trump and Biden administrations weighing the implications of such actions.
With that said, TikTok isn’t without options. By strengthening its safeguards, collaborating with regulators, and making strategic organizational changes, the platform has several pathways to potentially avoid a ban. Here’s what TikTok can do to secure its place in the U.S.
Strengthening Data Privacy Measures
One of the core issues driving the potential ban is concern over user data privacy and allegations that TikTok could share American data with the Chinese government.
As U.S. Senator Mark Warner stated, U.S. investors in ByteDance, TikTok's parent company, should encourage China to allow a separation of the app’s non-Chinese operations. Warner also emphasized that U.S. investors own approximately 40% of ByteDance, but he remains doubtful that China would permit a sale of TikTok, given its potential strategic value.
To combat such claims, TikTok must double down on initiatives that prioritize security and transparency.
Fortunately, TikTok has already begun efforts to store U.S. user data domestically through its $1.5 billion Project Texas initiative.
Project Texas was an initiative that involved partnering with Oracle to house data on servers located within the United States. Oracle also, supposedly, vetted the app's algorithm for over a year and found TikTok to be fully compliant with U.S. corporate laws.
TikTok CEO Shou Zi Chew explained:
“Project Texas seeks to build trust with users and fully safeguard user data and U.S. national security interests.”
However, this came to no avail, as Biden still banned the app from all federal U.S. devices back in February 2023.
Beyond technical solutions, TikTok could build trust by offering greater transparency around its algorithms and operations. By allowing public or government oversight into how content is prioritized and data is handled, the platform can address accusations of covert influence and manipulation.
Divestment of U.S. Operations
If TikTok cannot adequately address national security concerns through internal measures, ByteDance may face pressure to divest TikTok’s U.S. operations. This move could satisfy U.S. lawmakers and neutralize arguments about foreign control. However, ByteDance has resisted this option, citing challenges with transferring proprietary algorithms considered intellectual property by the Chinese government.
Interest in acquiring TikTok’s U.S. branch has already emerged. Billionaire Frank McCourt, through his Project Liberty initiative, has expressed intent to purchase the platform to decentralize its data operations. With commitments totaling $20 billion, McCourt’s bid could offer ByteDance an exit strategy.
McCourt stated,
"This landmark acquisition would catalyze our long-committed desire to usher in the era of an upgraded internet—one that prioritizes user control over digital identities and data."
However, the question remains whether China would allow the sale to proceed, given its stance on exporting technology and the strategic importance of TikTok's algorithm. ByteDance has indicated a preference to shut down TikTok in the U.S. rather than sell it without its core algorithm, which is subject to China's export controls.
Collaborating with U.S. Regulators
Establishing stronger relationships with U.S. regulators is crucial for TikTok to mitigate risks and build confidence. By collaborating closely with U.S. agencies, TikTok can develop a regulatory framework that ensures compliance with American laws and addresses national security concerns.
This partnership would involve clear guidelines and regular communication to reassure both the government and the public of TikTok's commitment to operating transparently and securely. Additionally, inviting independent firms to conduct regular audits of TikTok’s data practices and content moderation policies (like the audit from Oracle) could further demonstrate accountability.
Such audits would provide lawmakers with tangible evidence that TikTok prioritizes security and transparency. As part of this effort, TikTok has engaged third-party security companies to independently assess its data controls and protections, monitor data flows, and report any incidents.
Theo Bertram, TikTok’s Vice President for Public Policy in Europe, stated,
"We have engaged a third-party European security company to independently audit our data controls and protections, monitor data flows, provide independent verification, and report any incidents."
By taking these steps, TikTok aims to build trust with U.S. regulators and users, demonstrating its commitment to safeguarding user data and adhering to regulatory standards.
Introducing a U.S.-Based Leadership Structure
To address concerns over foreign influence, TikTok has taken steps to localize its leadership and operations. In 2021, Shou Zi Chew, a Singaporean national, was appointed as CEO, and Vanessa Pappas, based in Los Angeles, assumed the role of COO.
There's also this funny video where TikTok CEO Shou Zi Chew responds to U.S. Senator Tom Cotton questioning his ties to China. When asked if he had ever been a member of the Chinese Communist Party, Chew calmly replied, "Senator, I'm Singaporean. No."
The video has since circulated widely, showcasing both the scrutiny TikTok faces and Chew’s poised handling of the situation.
Additionally, TikTok has expanded its physical presence in the United States. The company established its East Coast headquarters in New York City, spanning 232,000 square feet across five floors in Times Square.
These strategic moves aim to demonstrate TikTok's commitment to addressing U.S. concerns and establishing a more localized operational structure.
Will These Efforts Be Enough?
While TikTok faces immense challenges, it also has a variety of tools at its disposal to avoid a ban in the U.S. A potential ban on the app not only damages the company's reputation but also its user base - including both influencers and businesses. By prioritizing data privacy through initiatives like Project Texas, exploring divestment options, collaborating with regulators, and implementing localized leadership structures, TikTok can work to rebuild trust and secure its future.
The question remains: will these efforts be enough to satisfy lawmakers and the Supreme Court? As the January 19 deadline looms, decisive action is no longer optional—it’s critical. For TikTok, the time to act is now.
