What in the world is going on with TikTok? Background, LATEST News, & future outlook

TikTok might be a new app, but it has been making some serious waves in the news. Is the app banned? What countries have access to it? Where does it store its data? We break down all the latest news and updates you need to know about TikTok.  

Background

ByteDance, the Beijing based tech giant, first launched a platform called Douyin in 2014 in Shanghai. After Douyin gained over 100 million new users in China and Thailand in its first year, ByteDance decided to expand its offerings. In 2017, the company bought Musical.ly. And by 2018, TikTok was widely available on a global scale (BBC).

International concerns

TikTok quickly became an international success. And as the platform experienced shocking growth, global politicians started paying attention. Various countries have voiced concerns that the platform is Chinese owned, collects sensitive data from users, and could threaten national security (Business of Apps). So much so that many countries have issued warnings and have undergone thorough investigations regarding the app's security, data, and privacy collection policies. Such countries include India, the USA, Australia, The European Union, Japan, Turkey, Indonesia, and Pakistan (The Washington Post).

India represents perhaps one of the most interesting cases. As of April 2020, it made up TikTok's largest overseas market, with over 500 million downloads and 600 million active users (Wallaroo). However, India recently experienced a crackdown on multiple Chinese owned apps, and perhaps the most notable being TikTok. And in June of 2020, the Indian government officially banned the app in response to tense military relations with China and concerns that the app was a threat to national security (Slate). Forbes estimates that India's ban on TikTok could cause the company up to $6 billion in losses (Forbes).

TikTok in the USA

With about 100 million active monthly users, the USA has also had its own debacle with the app (CNBC). Due to tense political relationships and past security interferences within the last year, many American users and politicians have concerns that the app is Chinese owned and based. This has sparked conversations that the USA should and possibly will attempt to regulate the app.

In response, ByteDance has attempted to ease concerns by announcing that all data collected from USA users is stored in the USA and that the platform has dedicated an entire team based in the USA to handle content and develop new moderation policies applicable to American users. ByteDance also attempted to ease concerns by appointing a USA based CEO and COO, Kevin Mayer (former Chairman of Walt Disney) in May of 2020 (The Verge).

Then, in August of 2020, President Donald Trump claimed that he planned to sign an executive order banning the app from operating in the USA. The Trump administration claimed that the only way around the ban would be to have an American based company buy TikTok's USA business-based operations within 45 days (by mid-September) (The New York Times). This led to a scramble among many major USA based companies to make a deal with ByteDance. And amongst the political turmoil, Mayer resigned from his position as CEO and COO (Tech Crunch).

THe Latest

And in late September, it was announced that Oracle and Walmart would acquire a 20% stake in TikTok Global, leaving 80% controlled by ByteDance, in a deal that has been approved by the USA government. This deal also includes launching a new USA based headquarters and employing thousands of Americans (Deadline). What does this mean? TikTok is here to stay!

Written By: Leah Ross, AMR Digital Marketing, Copywriter