Trump’s TikTok Deal Under Fire as China Retains Algorithm Control
▼ Summary
– TikTok will not shut down as President Trump extended the deadline to December 16 for ByteDance to divest ownership.
– A deal is being finalized that would shift 80 percent ownership to a US investor consortium including Oracle and others.
– The new TikTok board would be American-dominated, with one member designated by the US government.
– China will retain the TikTok algorithm, licensing it to the US, which may result in a glitchier US version.
– Congress could intervene if national security concerns persist, with some Republicans vowing to oppose the deal if it violates the relevant law.
The future of TikTok in the United States has taken a new turn as a proposed ownership deal moves forward, though not without significant controversy. President Trump has extended the deadline for ByteDance to divest its ownership stake, pushing the cutoff to mid-December while negotiations continue. The arrangement aims to transfer majority control of the popular video-sharing platform to a U.S.-led investor group, though critical questions about data security and algorithmic influence remain unresolved.
According to recent reports, an investor consortium including Oracle, Silver Lake, and Andreessen Horowitz is positioned to acquire an 80 percent stake in TikTok’s U.S. operations. Current ByteDance investors such as Susquehanna International, KKR, and General Atlantic are also expected to join the partnership. This shift would result in a predominantly American board of directors, with one seat reserved for a representative chosen by the U.S. government.
A central point of contention, however, involves the algorithm that powers TikTok’s content recommendations. Rather than transferring ownership of this core technology, ByteDance would merely license it to the new U.S. entity. This setup has raised concerns that American users may experience a less refined version of the app, as engineers would need to rebuild certain algorithmic functions from the ground up. Despite these changes, user-generated content would reportedly remain accessible across both U.S. and international versions of TikTok.
The agreement has drawn sharp criticism from some lawmakers who argue that allowing China to retain control over the algorithm undermines national security objectives. Senator Chuck Grassley and other Republicans have taken a firm stance, indicating they may challenge the deal if it fails to comply with the Protecting Americans from Foreign Adversary Controlled Applications Act. This legislation was designed to prevent foreign adversaries from using social media platforms to spy on or manipulate American citizens.
As the mid-December deadline approaches, the final structure of the agreement remains subject to change. Legal and political scrutiny is expected to intensify, especially if concerns about algorithmic control and data integrity are not adequately addressed.
(Source: Ars Technica)
