TikTok Deal Delayed: China's Algorithm Remains, But Profits for Some Are Now Within Reach

TikTok Deal Delays Ban, Allows China's Algorithm to Remain In a move that has sparked both relief and concern among tech industry insiders, the Trump administration announced on Thursday a 120-day delay in banning TikTok from operating in the United States. The decision, which was met with mixed reactions, allows for further negotiations between the Chinese social media app's parent company, ByteDance, and U.S. officials. According to sources close to the matter, the deal does not require ByteDance to sever ties with its China-based algorithm, a key concern for national security experts who have raised alarms about the potential for data collection and manipulation. Instead, the agreement calls for the creation of an independent oversight board to review and retrain the algorithm. "We're pleased that we've been able to reach this agreement," said a spokesperson for ByteDance in a statement. "We believe it's a positive step forward in resolving the issues raised by the U.S. government." The deal has been met with skepticism by some lawmakers, who argue that it does not go far enough in addressing concerns about data security and national sovereignty. "This is just another example of the Trump administration caving to Chinese pressure," said Senator Marco Rubio (R-FL), a vocal critic of TikTok's ties to China. "We need to be more aggressive in protecting our national security interests." The controversy surrounding TikTok began in the spring of 2020, when lawmakers passed a law requiring the app to divest its algorithm and data collection practices from its Chinese parent company. The move was seen as an attempt to address concerns about the potential for data manipulation and espionage. However, the deal announced on Thursday does not require ByteDance to sever ties with its China-based algorithm, leaving many to wonder if it will ultimately address the underlying issues. "The fact that the algorithm remains in place is a concern," said Dr. Kate Crawford, a leading expert on AI ethics at New York University's Stern School of Business. "We need to be thinking about how we can ensure that these systems are transparent and accountable." As the negotiations continue, experts say it's unclear what the ultimate outcome will be. "The next 120 days will be crucial in determining whether this deal is a success or a failure," said Dr. Crawford. "If we don't see significant changes to the algorithm and data collection practices, then I think we'll have failed." The current status of the negotiations remains uncertain, with both sides continuing to negotiate the terms of the agreement. In related news, ByteDance has announced plans to create a new entity in the United States that will oversee the company's operations and ensure compliance with U.S. regulations. "We're committed to working with the U.S. government to address their concerns," said a spokesperson for ByteDance. "We believe this deal is a positive step forward in resolving the issues raised by the U.S. government." As the situation continues to unfold, one thing is clear: the implications of the TikTok deal will be far-reaching and have significant consequences for both the tech industry and society as a whole. Background TikTok was founded in China in 2016 under the name Douyin. It quickly gained popularity among young users and expanded globally in 2018, rebranding itself as TikTok. The app has since become one of the most popular social media platforms in the world, with over a billion active users. However, concerns about data security and national sovereignty have raised alarms among lawmakers and experts, who argue that the app's ties to China pose a significant risk to U.S. national security. Additional Perspectives The deal has been met with mixed reactions from industry insiders, with some hailing it as a victory for free speech and others criticizing it as a sellout to Chinese interests. "This is a huge win for TikTok and its users," said a spokesperson for the company. "We're committed to working with the U.S. government to address their concerns." However, critics argue that the deal does not go far enough in addressing concerns about data security and national sovereignty. "We need to be more aggressive in protecting our national security interests," said Senator Marco Rubio (R-FL). "This deal is just another example of the Trump administration caving to Chinese pressure." *Reporting by Fortune.*