TikTok: Technology Overview and Issues
December 4, 2020June 30, 2023
TikTok is a globally popular video-sharing smartphone application (app) owned by ByteDance
TikTok is a globally popular video-sharing smartphone application (app) owned by ByteDance
Ltd., a privately held company headquartered in Beijing, China. It is under increasing scrutiny by Ltd., a privately held company headquartered in Beijing, China. It is under increasing scrutiny by
Patricia Moloney Figliola
the U.S. government as a potential privacy and security risk to U.S. citizens. This is because
the U.S. government as a potential privacy and security risk to U.S. citizens. This is because
Specialist in Internet and
Specialist in Internet and
ByteDance,
ByteDance,
likeas with all technology companies doing business in China, is subject to Chinese laws all technology companies doing business in China, is subject to Chinese laws
Telecommunications
Telecommunications
that require companies operating in the country to turn over user data when asked by the
that require companies operating in the country to turn over user data when asked by the
Chinese
Policy
Policy
government. Researchers differ over how TikTok data collection compares with other social
government. Researchers differ over how TikTok data collection compares with other social
media apps and whether TikTok poses a threat to the privacy and security of its U.S. users.
media apps and whether TikTok poses a threat to the privacy and security of its U.S. users.
TikTok launched in the United States in August 2018. The app is available in
TikTok launched in the United States in August 2018. The app is available in
over 155about 150 countries countries
in in
3975 languages and has approximately languages and has approximately
800 millionone billion monthly active users. In the United States, the app has approximately monthly active users. In the United States, the app has approximately
49150 million monthly active users. TikTok’s appeal lies heavily million monthly active users. TikTok’s appeal lies heavily
onin what has been called its “addictive” video feed, what has been called its “addictive” video feed,
For Youcalled the “For You” feed. The . The
app builds this feed through a “recommendation engine” app builds this feed through a “recommendation engine”
algorithm built onthat uses artificial intelligence artificial intelligence
(AI) technologies and data technologies and data
mining practices. According to the company, the recommendation engine relies on a complex set of weighted factors to mining practices. According to the company, the recommendation engine relies on a complex set of weighted factors to
recommend content, including hashtags and videos watched previously, as well as the kind of recommend content, including hashtags and videos watched previously, as well as the kind of
device a person is using. user device. TikTok critics cite problems with how much data TikTok collects from and about its users and with how that data is stored—TikTok critics cite problems with how much data TikTok collects from and about its users and with how that data is stored—
and could be and could be
shared. Some critics have also raised concerns about how TikTok promotes certain content to users and the potential to spread misinformation or propagandashared. .
On August 6, 2020,
On August 6, 2020,
then-President Trump signed an President Trump signed an
Executive Orderexecutive order aimed at stopping TikTok from doing business in the United aimed at stopping TikTok from doing business in the United
States. If the order had gone into effect on September 27, 2020, as scheduled, it would have prohibited any U.S. company or States. If the order had gone into effect on September 27, 2020, as scheduled, it would have prohibited any U.S. company or
person from “transacting” with ByteDance. On August 14, 2020, person from “transacting” with ByteDance. On August 14, 2020,
the PresidentPresident Trump issued a second issued a second
Executive Orderexecutive order stating that stating that
ByteDance must divest from all assets that support TikTok’s U.S. operations and destroy all previously collected U.S. user ByteDance must divest from all assets that support TikTok’s U.S. operations and destroy all previously collected U.S. user
data. Divestiture may be accomplished by finding a U.S. buyer for TikTok. The requirements data. Divestiture may be accomplished by finding a U.S. buyer for TikTok. The requirements
are were designed to limit the designed to limit the
Chinese government’s access to current and future data from U.S. TikTok users. ByteDance Chinese government’s access to current and future data from U.S. TikTok users. ByteDance
doesdid not want to divest from not want to divest from
TikTok and sued the Trump Administration.TikTok and sued the Trump Administration.
On September 14, 2020, Oracle announced that it had reached an agreement with ByteDance to “serve as [the company’s] trusted technology provider” in the United States. Treasury Secretary Steven Mnuchin announced that he had received the proposal. From the terminology used, it appears that the deal may involve a partnership between the two companies rather than a sale. This arrangement would keep the source code of the For You recommendation engine in the hands of ByteDance. It is unclear if this deal satisfies In 2021, President Biden rescinded both executive orders, but his Administration is still considering options to curtail TikTok’s ability to operate in the United States.
On September 14, 2020, Oracle announced that it had reached an agreement with ByteDance to “serve as [the company’s] trusted technology provider” in the United States. It is unclear whether this deal would have satisfied the conditions in President Trump’s the conditions in President Trump’s
Executive Orders. Secretarynow-rescinded executive orders. Then-Secretary of the Treasury Steven Mnuchin said that the Mnuchin said that the
Committee on Foreign Investment in the United States (CFIUS) would review the proposal and present President Trump with Committee on Foreign Investment in the United States (CFIUS) would review the proposal and present President Trump with
its opinion. On September 19, 2020, Oracle announced that Walmart would be joining the TikTok acquisition. TikTok originally had until November 27, 2020, to persuade the U.S. government to approve this sale.
On September 27, 2020, Judge Carl J. Nichols of the U.S. District Court for the District of Columbia granted a preliminary injunction against the Trump administration order. He stated that while President Trump has broad authority to prohibit business transactions with foreign entities that are deemed to pose a national security risk, TikTok appears to be exempt from such a prohibition because it is a personal communication service, which is protected by the International Emergency Economic Powers Act.
On October 30, 2020, a federal judge in Pennsylvania granted a preliminary injunction against a series of bans by the U.S. Department of Commerce (DoC) that had been set to go into effect on November 12, 2020. Although TikTok is suing to block its app from being banned, this ruling is from a lawsuit brought by three TikTok creators who worried the ban would prevent them from earning a living. The judge agreed that the videos constitute “informational materials,” which are protected by law. On November 12, 2020, the DoC stated that it would comply with the injunction. On November 10, 2020, TikTok filed a petition in the U.S. Court of Appeals asking for a review of actions by CFIUS because the company hadn’t heard from the committee in weeks.
Some believe TikTok and other Chinese-owned apps pose a serious security risk to the United States because Chinese companies are subject to China’s laws that require compliance with its opinion. Negotiations between TikTok and CFIUS remain ongoing.
During the 118th Congress, some Members have introduced various bills that would affect TikTok’s ability to continue operating in the United States. For example, Representative Michael McCaul introduced the Deterring America’s Technological Adversaries (DATA) Act (H.R. 1153) on February 24, 2023, which was reported favorably by the House Foreign Affairs Committee on May 16, 2023 (H.Rept. 118-63); Representative Kat Cammack introduced the Chinese-owned Applications Using the Information of Our Nation (CAUTION) Act of 2023 (H.R. 750) on February 2, 2023; Representative Ken Buck introduce the No TikTok on United States Devices Act (H.R. 503) on January 25, 2023; Senator Josh Hawley introduced the No TikTok on United States Devices Act (S. 85) on January 25, 2023; Representative Brian Babin introduced the Terminate TikTok on Campus Act of 2023 (H.R. 231) on January 10, 2023; and Representative Jack Bergman introduced the Protecting Personal Data from Foreign Adversaries Act (H.R. 57) on January 9, 2023. Additionally, the House Committee on Energy and Commerce held a hearing on TikTok on March 23, 2023, titled “TikTok: How Congress Can Safeguard American Data Privacy and Protect Children from Online Harms.”
Some stakeholders believe TikTok and other Chinese-owned apps pose a serious security risk to the United States, because Chinese companies are subject to China’s laws that require compliance with Chinese government requests for data. Others believe that TikTok government requests for data. Others believe that TikTok
has fallen into “the crosshairs of a global technology battle” based on technology trade protectionism. Similar situations may has fallen into “the crosshairs of a global technology battle” based on technology trade protectionism. Similar situations may
arise in the future with other apps created by foreign companies. arise in the future with other apps created by foreign companies.
At least 15 countries have partially or completely banned the TikTok app. Options that Congress may consider include (1) developing Options that Congress may consider include (1) developing
an overarching legal and regulatory framework to protect the security and privacy of U.S. citizens’ data and communications, an overarching legal and regulatory framework to protect the security and privacy of U.S. citizens’ data and communications,
and (2) developing a uniform, transparent process to assess and mediate risks from foreign apps. and (2) developing a uniform, transparent process to assess and mediate risks from foreign apps.
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1517 TikTok: Technology Overview and Issues
Contents
Background ..................................................................................................................................... 1
What Is TikTok? .............................................................................................................................. 1
TikTok’s Recommendation Engine ........................................................................................... 2
Data Collection, Storage, and Sharing by TikTok ..................................................................... 3
Data Collection ................................................................................................................... 3
Data Storage ........................................................................................................................ 4
Data Sharing ....................................................................................................................... 4
White House TikTok Executive Orders ........................................................................................... 4
Prohibiting Transactions with ByteDance ................................................................................. 5
TikTok Creators Lawsuit..................................................................................................... 5
Requiring Divestiture of ByteDance from TikTok .................................................................... 5
ByteDance Lawsuit Against Order to Divest ...................................................................... 6
China’s Cybersecurity Law and Export Rules ........5 China’s Cybersecurity Law and Export Rules ................................................................................. 5 Status of Potential Oracle Partnership with TikTok ........................................................................ 6
Status of Potential Oracle and Walmart Partnership with TikTok ................................................... 7
Discussion ....................................................................................................................................... 87
Threat to Security ...................................................................................................................... 87
Technology Trade Protectionism ............................................................................................... 9
Related Congressional Activity .8
Congressional Action in the 118th Congress .................................................................................................... 10
Hearings . 9
Legislation ................................................................................................................................. 10
Legislation 9 Hearing .................................................................................................................................... 1110
Conclusion ...................................................................................................................................... 11
Tables
Table 1. “For You” Feed Factors and Elements ............................................................................... 2
Appendixes
Appendix. What Is WeChat? ...............................................Related Congressional Activity—117th Congress .......................................................... 12
Contacts
Author Information ........................................................................................................................ 1214
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TikTok: Technology Overview and Issues
Background
TikTok is a popular video-sharing smartphone application (app) owned by ByteDance Ltd., a TikTok is a popular video-sharing smartphone application (app) owned by ByteDance Ltd., a
privately held company headquartered in Beijing, China. The app privately held company headquartered in Beijing, China. The app
ishas been under intense under intense
U.S. government scrutiny scrutiny
byfor the past few years the U.S. government as a potential privacy and security risk to U.S. users. A major concern is that as a potential privacy and security risk to U.S. users. A major concern is that
ByteDance is subject to Chinese laws that require companies operating in China to turn over user ByteDance is subject to Chinese laws that require companies operating in China to turn over user
data when asked to by the data when asked to by the
Chinese national government. national government. On August 6 and August 14, 2020, President Trump signed Executive Orders aimed at stopping U.S. persons and entities from doing business with ByteDance1 and requiring ByteDance to divest from any holding used to support the operation of TikTok in the United States.2 Researchers differ over how TikTok’s collection of user Researchers differ over how TikTok’s collection of user
data compares with other social media apps and whether TikTok poses a unique threat to the data compares with other social media apps and whether TikTok poses a unique threat to the
privacy and security of its U.S. users, privacy and security of its U.S. users,
including many minors.
WeChat, another Chinese-owned app, is often mentioned in conjunction with TikTok, but the two apps are quite different. TikTok has a single function—short video—while WeChat has multiple—voice and data messaging, social media, and digital payment. WeChat is used in the United States primarily by the Chinese language community, whereas TikTok is used more widely. On the same day as the TikTok order, President Trump also signed an Executive Order prohibiting any U.S. individual or entity from engaging in any transaction related to WeChat and its owner, Tencent Holdings Ltd.3 While issues with the two apps are often conflated, their functions, technical capabilities, and the data collected from their users are different. Only TikTok is discussed in this report. Background information about WeChat is in the Appendix.
What Is TikTok?
On August 2, 2018, U.S. users of the Musical.ly app, a short video service headquartered in Shanghai, China, with a U.S. office in Santa Monica, CA, found that it had been who include many minors.
This report describes the underlying technology and programming of the TikTok app and recommendation engine, as well as how TikTok collects, stores, and shares user data.
Additional information about restricting the use of TikTok, including the legal history, current legislative proposals, considerations for Congress, and a discussion of recent data privacy and national security concerns, can be found in the following CRS products:
• CRS Legal Sidebar LSB10940, Restricting TikTok (Part I): Legal History and
Background, by Stephen P. Mulligan;
• CRS Legal Sidebar LSB10942, Restricting TikTok (Part II): Legislative
Proposals and Considerations for Congress, by Stephen P. Mulligan and Valerie C. Brannon;
• CRS Insight IN12131, TikTok: Recent Data Privacy and National Security
Concerns, by Kristen E. Busch; and
• CRS Legal Sidebar LSB10972, Montana’s TikTok Ban and Pending Legal
Actions, by Sanchitha Jayaram and Madeline W. Donley.
What Is TikTok? On August 2, 2018, U.S. users of the Musical.ly app, a short-video service headquartered in Shanghai, China, with a U.S. office in Santa Monica, CA, found that their accounts had been merged into merged into
TikTok. Musical.ly had been acquired by ByteDance, the owner of TikTok, in November 2017 for TikTok. Musical.ly had been acquired by ByteDance, the owner of TikTok, in November 2017 for
$1 billion as a means$1 billion as a means
for ByteDance to enter the U.S. market. The TikTok app is available in to enter the U.S. market. The TikTok app is available in
over 155about 150 countries countries
in 39in 75 languages, and has approximately languages, and has approximately
800 million one billion monthly active users.monthly active users.
41 In the United States, In the United States,
TikTok has approximately TikTok has approximately
49150 million monthly active million monthly active
users5users,2 and the company maintains offices in and the company maintains offices in
Los Angeles and New York. When ByteDance first released the TikTok app in September 2016, Los Angeles and New York. When ByteDance first released the TikTok app in September 2016,
videos could be no longer than 15 seconds, but now videos could be no longer than 15 seconds, but now
users are allowed to create videos up to 10 minutes.3 ByteDance is currently estimated to be worth $220 billion.4
1 Brendan Doyle, “TikTok Specifics,” Wallaroo.com, March 21, 2023, https://wallaroomedia.com/blog/social-media/tiktok-statistics/.
2 Ibid. 3 Adam Birney, “What Is the Maximum Length for a TikTok Video? A Look at How TikTok’s Time Lengths Have Changed and Why,” January 18, 2023, https://www.androidauthority.com/how-long-are-tiktok-videos-3163309/.
4 “For Top VCs, ByteDance’s Historic Windfall Remains A $220 Billion Mirage,” Forbes, May 4, 2023, https://www.forbes.com/sites/alexkonrad/2023/05/04/bytedance-scrutiny-leaves-midas-investors-waiting-billions/.
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TikTok’s Recommendation Engine TikTok’s appeal relies on what has been called its “addictive” video feed, For You.5 For You is filled with endless curated content selected using TikTok’s recommendation algorithm. It is similar to Instagram’s Explore page and other recommendation-based app designs. However, while both apps consider the videos that a user has interacted with in the past, the accounts and hashtags they have followed, their location and language preferences, and the content the users themselves create, the apps have different methods to prioritize what users see when they open the app. On Instagram, the main feed contains content shared by the people that users follow; the Explore page is a secondary tab, and to see it, users must click away from their main feed. On TikTok, that is reversed: For You is populated with videos selected by TikTok’s algorithm, mostly from creators the user doesn’t know.
The app users are allowed to link together four 15-second segments.6 Longer videos recorded outside the app can also be uploaded to the platform.
1 President Donald J. Trump, “Executive Order on Addressing the Threat Posed by TikTok,” August 6, 2020, at https://www.whitehouse.gov/presidential-actions/executive-order-addressing-threat-posed-tiktok/.
2 President Donald J. Trump, “Executive Order Regarding the Acquisition of Musical.ly by ByteDance Ltd.,” August 14, 2020, at https://home.treasury.gov/system/files/136/EO-on-TikTok-8-14-20.pdf.
3 President Donald J. Trump, “Executive Order on Addressing the Threat Posed by WeChat,” August 6, 2020, at https://www.whitehouse.gov/presidential-actions/executive-order-addressing-threat-posed-wechat/.
4 Katie Brigham, “How TikTok Became the Hottest App of 2020,” CNBC.com, June 16, 2020, at https://www.cnbc.com/2020/06/16/tiktok-sees-rapid-growth-amid-quarantines-but-privacy-concerns-linger.html.
5 Raymond Zhong and Sheera Frenkel, “A Third of TikTok’s U.S. Users May Be 14 or Under, Raising Safety Questions,” New York Times, September 17, 2020, sec. Technology, at https://www.nytimes.com/2020/08/14/technology/tiktok-underage-users-ftc.html.
6 This limitation applies only to videos recorded through the app. Videos recorded using other methods or apps can be longer than 60 seconds. TikTok videos are intended for viewing on mobile device screens, rather than on computers or TV, and are formatted for that purpose.
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ByteDance is currently estimated to be worth over $100 billion.7 The company’s core product in China is Toutiao, which means “Headlines.” Toutiao began as a mobile news recommendation engine, but has evolved into a platform to deliver content and targeted advertising in other formats as well (e.g., text messages, images, question-and-answer posts, microblogs, videos).
TikTok’s Recommendation Engine
TikTok’s appeal relies on what has been called its “addictive” video feed, For You.8 The app builds this feed through a “recommendation engine” using artificial intelligence (AI) technologies builds this feed through a “recommendation engine” using artificial intelligence (AI) technologies
and data mining practices. How each user’s feed is constructed had been a tightly held secret until and data mining practices. How each user’s feed is constructed had been a tightly held secret until
recently. On June 18, 2020,June 2020, when TikTok published a blog post, “How TikTok Recommends Videos TikTok published a blog post, “How TikTok Recommends Videos
#ForYou.”#ForYou.”
96
The company says its algorithm relies on a complex set of weighted factors to recommend
The company says its algorithm relies on a complex set of weighted factors to recommend
content based on user preferences, including hashtags and videos watched; videos “liked,” shared, content based on user preferences, including hashtags and videos watched; videos “liked,” shared,
and commented on; as well as the kind of device a person is using. Each user’s feed is uniqueand commented on; as well as the kind of device a person is using. Each user’s feed is unique
to the individual. .
Table 1 lists the specific factors lists the specific factors
the company says it usesused for recommendations, according to TikTok. .
Table 1. “For You” Feed Factors and Elements
Factors
Elements
User interactions
User interactions
•
Videos liked or shared
Videos liked or shared
•
Accounts fol owed
Accounts fol owed
•
Comments posted
Comments posted
•
Content created
Content created
Video information/details
Video information/details
•
Captions
Captions
•
Sounds
Sounds
•
Hashtags
Hashtags
Device and account settings
Device and account settings
•
Language preference
Language preference
•
Country setting
Country setting
•
Device type
Device type
These factors are included to make sure the system is
These factors are included to make sure the system is
optimized for performance, but they receive lower optimized for performance, but they receive lower
weight in the recommendation system relative to other weight in the recommendation system relative to other
data points because users don’t actively express these data points because users don’t actively express these
as preferences. as preferences.
Source: “How TikTok Recommends Videos #ForYou,” TikTok Blog, June 18, 2020, at “How TikTok Recommends Videos #ForYou,” TikTok Blog, June 18, 2020, at
https://newsroom.tiktok.com/en-us/how-tiktok-recommends-videos-for-you. https://newsroom.tiktok.com/en-us/how-tiktok-recommends-videos-for-you.
7 “ByteDance, the Chinese Company Behind Tiktok, Is Now Reportedly Worth over $100 Billion,” Business Insider
India, May 20, 2020, at https://www.businessinsider.in/stock-market/news/bytedance-the-chinese-company-behind-tiktok-is-now-reportedly-worth-over-100-billion/articleshow/75850118.cms.
8
According to TikTok,
5 John Hermann, “How TikTok Is Rewriting the World,” John Hermann, “How TikTok Is Rewriting the World,”
New York Times, March 10, 2019, , March 10, 2019,
at https://www.nytimes.com/2019/03/10/style/what-is-tik-tok.html. https://www.nytimes.com/2019/03/10/style/what-is-tik-tok.html.
96 “How TikTok recommends videos #ForYou,” “How TikTok recommends videos #ForYou,”
TikTok Blog, June 18, 2020, , June 18, 2020,
at https://newsroom.tiktok.com/en-us/how-https://newsroom.tiktok.com/en-us/how-
tiktok-recommends-videos-for-you. tiktok-recommends-videos-for-you.
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TikTok: Technology Overview and Issues
According to TikTok,
[a]ll these factors are processed by our recommendation system and weighted based on [a]ll these factors are processed by our recommendation system and weighted based on
their value to a user. A strong indicator of interest, such as whether a user finishes watching their value to a user. A strong indicator of interest, such as whether a user finishes watching
a longer video from beginning to end, would receive greater weight than a weak indicator, a longer video from beginning to end, would receive greater weight than a weak indicator,
such as whether the video’s viewer and creator are both in the same country. Videos are such as whether the video’s viewer and creator are both in the same country. Videos are
then ranked to determine the likelihood of a user’s interest in a piece of content, and then ranked to determine the likelihood of a user’s interest in a piece of content, and
delivered to each unique For You feed. delivered to each unique For You feed.
The blog post was seen by
The blog post was seen by
moststakeholders as an effort to provide more transparency to the public as the as an effort to provide more transparency to the public as the
U.S. government was increasing its scrutiny of the company’s practices.U.S. government was increasing its scrutiny of the company’s practices.
107
Data Collection, Storage, and Sharing by TikTok
Critics, Critics,
as well as some membersincluding some Members of Congress, cite as problematic the amount of data that TikTok of Congress, cite as problematic the amount of data that TikTok
collects from and about its users, how that data is stored, and how it could potentially be shared collects from and about its users, how that data is stored, and how it could potentially be shared
with the Chinese government and used in influence with the Chinese government and used in influence
campaigns11campaigns8 or against U.S. citizens. or against U.S. citizens.
12 Based on these concerns, both the Democratic and Republican national committees, the Department of Defense, and some9 Because of these concerns, the federal government and more than half of U.S. states have banned the app on devices issued to certain government employees.10 Some private firms, such as Wells Fargo Inc., have banned or discouraged the use of private firms, such as Wells Fargo Inc., have banned or discouraged the use of
the TikTok app.the TikTok app.
1311
Data Collection
According to its privacy policy,
According to its privacy policy,
1412 TikTok collects a range of user information, including location TikTok collects a range of user information, including location
data and internet address, keystroke patterns, and the type of device being used to access the app. data and internet address, keystroke patterns, and the type of device being used to access the app.
The app also collects and stores a user’s browsing and search history within the app, as well as The app also collects and stores a user’s browsing and search history within the app, as well as
the content of any messages exchanged using the app. Additional information can be collected the content of any messages exchanged using the app. Additional information can be collected
based on user permission: phone number, phone book, and social-network contacts; GPS data; based on user permission: phone number, phone book, and social-network contacts; GPS data;
user age; user-generated content (e.g., photos and videos); store payment information; and the user age; user-generated content (e.g., photos and videos); store payment information; and the
videos “liked,” shared, watched all the way through, and re-watched.videos “liked,” shared, watched all the way through, and re-watched.
TikTok states that the app collects less personal data than many other apps
TikTok continues to state that the app does not collect more user data than other social media apps13 and online platforms, such as Facebook and Google, such as Facebook and Google
, (both of both of
which those companies track user activity across devicestrack user activity across devices
, while (TikTok claims that it does not).TikTok claims that it does not).
15 The 14 According to some scholars, the data that TikTok collects data that TikTok collects
from users appears from users appears
in many regards to be comparable to what other social media to be comparable to what other social media
companies
10
7 Louise Matsakis, “TikTok Finally Explains How the ‘For You’ Algorithm Works,” Louise Matsakis, “TikTok Finally Explains How the ‘For You’ Algorithm Works,”
Wired.com, June 18, 2020, , June 18, 2020,
at https://www.wired.com/story/tiktok-finally-explains-for-you-algorithm-works/. https://www.wired.com/story/tiktok-finally-explains-for-you-algorithm-works/.
118 Rebecca Jennings, “What’s Going on with TikTok, China, and the US Government?” Rebecca Jennings, “What’s Going on with TikTok, China, and the US Government?”
Vox, December 16, 2019, , December 16, 2019,
at https://www.vox.com/open-sourced/2019/12/16/21013048/tiktok-china-national-security-investigation. (Hereinafter, https://www.vox.com/open-sourced/2019/12/16/21013048/tiktok-china-national-security-investigation. (Hereinafter,
“What’s Going on with TikTok, China, and the US Government?”) “What’s Going on with TikTok, China, and the US Government?”)
129 Robert McMillan, Liza Lin, and Shan Li, “TikTok User Data: What Does the App Collect and Why Are U.S. Robert McMillan, Liza Lin, and Shan Li, “TikTok User Data: What Does the App Collect and Why Are U.S.
Authorities Concerned?” Authorities Concerned?”
Wall Street Journal, July 7, 2020, , July 7, 2020,
at https://www.wsj.com/articles/tiktok-user-data-what-https://www.wsj.com/articles/tiktok-user-data-what-
does-the-app-collect-and-why-are-u-s-authorities-concerned-11594157084. (Hereinafter, “TikTok User Data: What does-the-app-collect-and-why-are-u-s-authorities-concerned-11594157084. (Hereinafter, “TikTok User Data: What
Does the App Collect and Why Are U.S. Authorities Concerned?”) Does the App Collect and Why Are U.S. Authorities Concerned?”)
1310 Catherine Thorbecke and Brian Fung, “TikTok Ban Explained: What You Need to Know About the US Government Threat to Ban the App,” CNN Business, March 23, 2023, https://www.cnn.com/2023/03/18/tech/tiktok-ban-explainer/index.html.
11 Shelly Banjo, Kartikay Mehrotra, and William Turton, “TikTok’s Huge Data Harvesting Prompts U.S. Security Shelly Banjo, Kartikay Mehrotra, and William Turton, “TikTok’s Huge Data Harvesting Prompts U.S. Security
Concerns,” Concerns,”
Bloomberg.com, July 14, 2020, , July 14, 2020,
at https://www.bloomberg.com/news/articles/2020-07-14/tiktok-s-massive-https://www.bloomberg.com/news/articles/2020-07-14/tiktok-s-massive-
data-harvesting-prompts-u-s-security-concerns. (Hereinafter, “TikTok’s Huge Data Harvesting Prompts U.S. Security data-harvesting-prompts-u-s-security-concerns. (Hereinafter, “TikTok’s Huge Data Harvesting Prompts U.S. Security
Concerns.”) Concerns.”)
1412 The privacy policy is available online at https://www.tiktok.com/legal/privacy-policy?lang=en. The privacy policy is available online at https://www.tiktok.com/legal/privacy-policy?lang=en.
1513 Brian Fung, “TikTok Collects a Lot of Data. But That’s Not the Main Reason Officials Say It’s a Security Risk,” CNN.com, March 24, 2023, https://www.cnn.com/2023/03/24/tech/tiktok-ban-national-security-hearing/index.html.
14 “TikTok User Data: What Does the App Collect and Why Are U.S. Authorities Concerned?” “TikTok User Data: What Does the App Collect and Why Are U.S. Authorities Concerned?”
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companies gather and use.gather and use.
16 Some15 However, some critics have described TikTok’s approach to data mining as critics have described TikTok’s approach to data mining as
aggressive17 andaggressive16 and argued that its ability to track user behavior while using the app, as well as that its ability to track user behavior while using the app, as well as
its access to a user’s photos, access to a user’s photos,
videos, and phone book and geolocation tracking (based on user permissions), means that it can videos, and phone book and geolocation tracking (based on user permissions), means that it can
build extremely detailed behavioral profiles of its users that could potentially be shared with the build extremely detailed behavioral profiles of its users that could potentially be shared with the
Chinese government.Chinese government.
18 On August 11, 2020, the Wall Street Journal reported that TikTok avoided privacy safeguards in Google’s Android operating system to collect users’ mobile device MAC addresses, unique identifiers that allow “the app to track users online,” and concealed this activity with an additional layer of encryption before ending the practice after 15 months in November 2019.1917 On February 14, 2022, TheWrap reported:
TikTok can circumvent security protections on Apple and Google app stores and uses device tracking that gives TikTok’s Beijing-based parent company ByteDance full access to user data, according to the summaries of two major studies obtained by TheWrap that appear to confirm longstanding concerns raised by privacy experts about the popular video-sharing app.18
Data Storage
TikTok claims to store all content created by U.S. users—as well as data about those users—only
TikTok claims to store all content created by U.S. users—as well as data about those users—only
on servers located within the United States and on servers located within the United States and
backed up in Singapore. Those servers are owned in Singapore. Those servers are owned
or controlled by TikTok, but the company denies that it shares or would share this data with the or controlled by TikTok, but the company denies that it shares or would share this data with the
Chinese government,Chinese government,
2019 stating stating
that:
The key personnel responsible for TikTok … are all Americans based in the United
The key personnel responsible for TikTok … are all Americans based in the United
States—and therefore are not subject to Chinese law. U.S. content moderation is likewise States—and therefore are not subject to Chinese law. U.S. content moderation is likewise
led by a U.S.-based team and operates independently from China, and, as noted above, the led by a U.S.-based team and operates independently from China, and, as noted above, the
TikTok application stores U.S. user data on servers located in the United States and TikTok application stores U.S. user data on servers located in the United States and
Singapore.Singapore.
21
Data Sharing
Despite these assertions, TikTok’s website says that information can be shared with its parent company in China or other affiliates (usually advertisers), which operate under Chinese law.22 Further, a lawsuit filed in federal court in December 2019 asserted that user data was harvested and sent to servers in China.23
White House TikTok Executive Orders
President Trump has issued two Executive Orders affecting the future of TikTok in the United States, one on August 6, 2020 (E.O. 13942), and another on August 14, 2020 (No number assigned).
1620
Data Sharing
TikTok has asserted that all user data is stored in servers located within the United States and Singapore; however, in testimony to the House Committee on Energy and Commerce on March 23, 2023, TikTok’s Chief Executive Officer, Shou Zi Chew, stated that ByteDance may still have
15 Sherrod DeGrippo, “Understanding the Information TikTok Gathers and Stores,” Sherrod DeGrippo, “Understanding the Information TikTok Gathers and Stores,”
Proofpoint, January 8, 2020, , January 8, 2020,
at https://www.proofpoint.com/us/blog/threat-protection/understanding-information-tiktok-gathers-and-stores. https://www.proofpoint.com/us/blog/threat-protection/understanding-information-tiktok-gathers-and-stores.
1716 Ryan Broderick, “Forget the Trade War. TikTok Is China’s Most Important Export Right Now,” Ryan Broderick, “Forget the Trade War. TikTok Is China’s Most Important Export Right Now,”
BuzzFeed News, ,
May 16, 2019, May 16, 2019,
at https://www.buzzfeednews.com/article/ryanhatesthis/forget-the-trade-war-tiktok-is-chinas-most-https://www.buzzfeednews.com/article/ryanhatesthis/forget-the-trade-war-tiktok-is-chinas-most-
important-export. important-export.
1817 “TikTok’s Huge Data Harvesting Prompts U.S. Security Concerns.” “TikTok’s Huge Data Harvesting Prompts U.S. Security Concerns.”
19 18 Antoinette Siu, “TikTok Can Circumvent Apple and Google Privacy Protections and Access Full User Data, 2 Studies Say (Exclusive),” TheWrap, February 14, 2023, https://www.thewrap.com/tiktok-circumvent-privacy-protections-user-data/. The studies, conducted by unidentified “white hat” cybersecurity experts that hack for the public good, were completed in November 2020 and January 2021.
Kevin Poulsen and Robert McMillan, “TikTok Tracked User Data Using Tactic Banned by Google,” Kevin Poulsen and Robert McMillan, “TikTok Tracked User Data Using Tactic Banned by Google,”
Wall Street
Journal, August 11, 2020, sec. Tech, , August 11, 2020, sec. Tech,
at https://www.wsj.com/articles/tiktok-tracked-user-data-using-tactic-banned-by-https://www.wsj.com/articles/tiktok-tracked-user-data-using-tactic-banned-by-
google-11597176738. google-11597176738.
2019 “TikTok User Data: What Does the App Collect and Why Are U.S. Authorities Concerned?” “TikTok User Data: What Does the App Collect and Why Are U.S. Authorities Concerned?”
2120 “Why We Are Suing the Administration,” “Why We Are Suing the Administration,”
TikTok Blog, August 24, 2020, , August 24, 2020,
at https://newsroom.tiktok.com/en-us/https://newsroom.tiktok.com/en-us/
tiktok-tiktok-
files-lawsuit.
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access to U.S. data. Further, a lawsuit filed in federal court21 in December 2019 asserted that user data was harvested and sent to servers in China.22
White House TikTok Executive Orders Then-President Trump issued two executive orders affecting the future of TikTok in the United States, one on August 6, 2020 (E.O. 13942),23 and another on August 14, 2020 (no number assigned).24 In 2021, the Biden Administration rescinded E.O 13942;25 it has chosen thus far not to enforce the order of August 14, 2021. For details on the two executive orders and legal challenges, see CRS Legal Sidebar LSB10940, Restricting TikTok (Part I): Legal History and Background, by Stephen P. Mulligan, and CRS Legal Sidebar LSB10942, Restricting TikTok (Part II): Legislative Proposals and Considerations for Congress, by Stephen P. Mulligan and Valerie C. Brannon.
China’s Cybersecurity Law and Export Rules The Cybersecurity Law of the People’s Republic of China was passed in November 2016 and went into effect in June 2017. It was updated in November 2018 by the Regulations on Internet Security Supervision and Inspection by Public Security Organs, and again in September 2022.26 The law
• strictly controls online activities; • mandates the local storage of user data and the registration of certain network
assets; and
• allows the government to conduct onsite and remote inspection of computer
networks.27
The law requires Chinese companies to cooperate with government intelligence operations if so requested28 and may allow the Chinese government access to user data collected by any company doing business in China. One analyst notes that “by demanding access to any data collected and
21 This case was transferred to an Illinois district court as part of a multi-district litigation proceeding, In Re: TikTok, Inc., Consumer Privacy Litigation, MDL-No.-2948 (N.D. Illinois). See also, “Court Approval of Multimillion Dollar TikTok Privacy Settlement,” National Law Review, March 8, 2021, https://www.natlawreview.com/article/tik-tok-tik-tok-time-running-out-preliminary-court-approval-multimillion-dollar.
22 “Tiktok Sent US User Data to China, Lawsuit Claims,” BBC.com, December 3, 2019, https://www.bbc.com/news/business-50640110.
23 United States, Executive Office of the President, “Addressing the Threat Posed by TikTok, and Taking Additional Steps to Address the National Emergency with Respect to the Information and Communications Technology and Services Supply Chain,” 85 Federal Register 48637 (August 11, 2020), https://www.federalregister.gov/executive-order/13942.
24 United States, Executive Office of the President, “Regarding the Acquisition of Musical.ly by ByteDance, Ltd,” 85 FR 51297 (August 14, 2020), https://home.treasury.gov/system/files/136/EO-on-TikTok-8-14-20.pdf.
25 E.O. 14034. United States, Executive Office of the President, “Protecting Americans’ Sensitive Data from Foreign Adversaries,” 86 Federal Register 31423 (June 9, 2021), https://www.federalregister.gov/documents/2021/06/11/2021-12506/protecting-americans-sensitive-data-from-foreign-adversaries.
26 Arendse Huld, “China Solicits Opinions on Amendment to Cybersecurity Law,” China Briefing, September 20, 2022, https://www.china-briefing.com/news/china-cybersecurity-law-cac-solicits-opinions-on-amendment/.
27 Computer networks are generallyfiles-lawsuit.
22 “TikTok User Data: What Does the App Collect and Why Are U.S. Authorities Concerned?” 23 “Tiktok Sent US User Data to China, Lawsuit Claims,” BBC.com, December 3, 2019, at https://www.bbc.com/news/business-50640110.
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Prohibiting Transactions with ByteDance
The August 6, 2020, E.O. 13942 had been set to take effect on September 20, 2020, but that date was extended. The order does not state which specific transactions would be prohibited, but it would likely result in the removal of the TikTok app from Apple’s App Store and Google’s Play Store in the United States. It could also make it illegal for U.S. companies to purchase advertising on TikTok. Some U.S. TikTok employees have speculated that they would no longer be able to be paid.
TikTok Creators Lawsuit
On September 18, 2020, TikTok creators Douglas Marland, Cosette Rinab, and Alec Chambers (“plaintiffs”) filed a motion to prevent implementation of E.O. 13942. TikTok is suing separately to block its app from being banned, but this lawsuit is based on plaintiffs’ assertion that the ban would prevent them from earning a living. The motion was amended by plaintiffs on October 1, 2020. On October 30, 2020, a federal judge in Pennsylvania granted a preliminary injunction against a series of bans by the U.S. Department of Commerce (DoC) that had been set to go into effect on November 12, 2020. Although TikTok is suing to block its app from being banned, this ruling is from a lawsuit brought by three TikTok creators who worried the ban would prevent them from earning a living. The judge agreed that the videos constitute “informational materials,” which are protected by law. On November 12, 2020, the DoC stated that it would comply with the injunction. On November 10, 2020, TikTok filed a petition in the U.S. Court of Appeals asking for a review of actions by CFIUS because the company hadn’t heard from the committee in weeks.
Requiring Divestiture of ByteDance from TikTok
On August 14, 2020, President Trump issued an additional Executive Order, “Regarding the Acquisition of Musical.ly by ByteDance Ltd.,”24 that imposed additional conditions on the ability of ByteDance to operate TikTok in the United States. The order requires ByteDance and its “subsidiaries, affiliates, and Chinese shareholders” to divest from “any tangible or intangible assets or property, wherever located, used to enable or support ByteDance’s operation of the TikTok application in the United States” as determined by the Committee on Foreign Investment in the United States (CFIUS).25 The order also requires ByteDance to destroy all data obtained or derived from either the TikTok or Music.ly apps from U.S. users upon divestiture and certify in writing to CFIUS that it has done so. The order requires these actions within 90 days (November 12, 2020), rather than the 45 days included in the first order, giving ByteDance additional time to find a buyer.26 A transfer of ownership and operation of TikTok to a U.S. entity not subject to Chinese laws, including management of collected user data, appears designed to limit the ability of the Chinese government to acquire access to future U.S. user data.
24 President Donald J. Trump, “Executive Order Regarding the Acquisition of Musical.ly by ByteDance Ltd.,” August 14, 2020, at https://home.treasury.gov/system/files/136/EO-on-TikTok-8-14-20.pdf.
25 CFIUS is an interagency committee that serves the President in overseeing the national security implications of foreign investment in the economy. For more information, see CRS In Focus IF10177, The Committee on Foreign
Investment in the United States, by James K. Jackson.
26 Lora Kolodny, “Trump Orders Bytedance to Divest from Its U.S. Tiktok Business Within 90 Days,” CNBC.com, August 14, 2020, at https://www.cnbc.com/2020/08/14/president-trump-orders-bytedance-to-divest-from-its-us-tiktok-business-within-90-days.html.
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ByteDance Lawsuit Against Order to Divest
ByteDance opposed divestiture from TikTok and, on August 24, 2020, sued the Trump Administration.27 In a blog post, TikTok stated that it was “shocked by the recent Executive Order, which was issued without any due process.”28 On September 27, 2020, Judge Carl J. Nichols of the United States District Court for the District of Columbia granted a preliminary injunction against the Trump administration order. He stated that while President Trump has broad authority to prohibit business transactions with foreign entities that are deemed to pose a national security risk, TikTok appears to be exempt from such a prohibition because it is a personal communication service, which is protected by the International Emergency Economic Powers Act.
China’s Cybersecurity Law and Export Rules
The Cybersecurity Law of the People’s Republic of China was passed in November 2016 and went into effect in June 2017. It was updated in November 2018 by the Regulations on Internet Security Supervision and Inspection by Public Security Organs. These laws—
strictly control online activities; mandate the local storage of user data and the registration of certain network
assets; and
allow the government to conduct onsite and remote inspection of computer
networks.29
The law requires Chinese companies to cooperate with government intelligence operations if so requested30 and may allow the Chinese government access to user data collected by any company doing business in China. One analyst notes that “by demanding access to any data collected and stored in China, the updated regulations force [domestic and] foreign companies based in China to comply with its investigative measures, leaving intellectual property and private information vulnerable to government abuse.”31
On August 31, 2020, China took specific action that could prohibit the sale of TikTok’s underlying technology and processes. The new export regulations cover such technologies as “text analysis, content recommendation, speech modeling, and voice recognition.”32 Since the For You feed and algorithmic recommendation engine is considered the key element of TikTok’s
27 Rachel Lerman, “TikTok Sues Trump Administration to Fight Impending Ban,” Washington Post, August 24, 2020, at https://www.washingtonpost.com/technology/2020/08/24/tiktok-lawsuit-trump. The lawsuit complaint is available online at https://assets.documentcloud.org/documents/7043165/TikTok-Trump-Complaint.pdf.
28 “Statement on the Administration’s Executive Order,” TikTok Blog, August 7, 2020, at https://newsroom.tiktok.com/en-us/tiktok-responds. See also “Why We Are Suing the Administration,” TikTok Blog, August 24, 2020, at https://newsroom.tiktok.com/en-us/tiktok-files-lawsuit.
29 Generally defined in the Cybersecurity Law as five or more computers connected to the internet, defined in the Cybersecurity Law as five or more computers connected to the internet,
which account for a definition that applies to almost every foreign company operating in China. almost every foreign company operating in China.
3028 “What’s Going on with TikTok, China, and the US Government?”
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stored in China, the updated regulations force [domestic and] foreign companies based in China to comply with its investigative measures, leaving intellectual property and private information vulnerable to government abuse.”29
On August 31, 2020, China took specific action that could prohibit the sale of TikTok’s underlying technology and processes. The new export regulations cover such technologies as “text analysis, content recommendation, speech modeling, and voice recognition.”30 Since the recommendation engine is considered one of the key elements of TikTok’s success, a ban on transferring the technology and processes used to create it could make it more difficult to sell the app or prevent a sale altogether.31
Status of Potential Oracle Partnership with TikTok “What’s Going on with TikTok, China, and the US Government?” 31 Lauren Maranto, “Who Benefits from China’s Cybersecurity Laws?” Center for Strategic and International Studies, June 25, 2020, at https://www.csis.org/blogs/new-perspectives-asia/who-benefits-chinas-cybersecurity-laws.
32 Timothy B. Lee, “China Announces New Export Rules That Could Prevent Sale of Tiktok,” ArsTechnica.com, August 31, 2020, at https://arstechnica.com/tech-policy/2020/08/china-announces-new-export-rules-that-could-prevent-sale-of-tiktok/. (Hereinafter, “China Announces New Export Rules That Could Prevent Sale of Tiktok.”)
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success, a ban on transferring the technology and processes used to create it could make it more difficult to sell the app or prevent a sale altogether.33
Status of Potential Oracle and Walmart Partnership
with TikTok
In response to the TikTok Executive Order, two leading bidders emerged as potential buyers of the app: Oracle and a partnership between Microsoft and Walmart. Bids were reported to be in the range of $20 billion to $30 billion.34 Twitter and Google were also rumored to be interested in acquiring the app.35
On September 13, 2020, Microsoft announced that its bid had been rejected by ByteDance. In its announcement, the company stated, “We would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combating disinformation.” One expert, Alex Stamos, Director of the Stanford Internet Observatory, commented that this statement is “an attempt to poison the well against an Oracle deal where they only take over hosting. And [Microsoft] is right to do so.”36
On September 14, 2020, Oracle announced that it had reached an agreement with ByteDance to On September 14, 2020, Oracle announced that it had reached an agreement with ByteDance to
“serve as [the company’s] trusted technology provider” in the United States. “serve as [the company’s] trusted technology provider” in the United States.
Treasury Secretary Steven Mnuchin announced that he had received the proposal.37 From the terminology usedFrom the terminology used in the proposal, it appeared, it appears that the deal that the deal
may involveinvolved a partnership rather than a sale, with TikTok using Oracle’s a partnership rather than a sale, with TikTok using Oracle’s
cloud hosting services.cloud hosting services.
3832 This arrangement would keep the source code of the For You feed and This arrangement would keep the source code of the For You feed and
algorithmic recommendation engine in the hands of algorithmic recommendation engine in the hands of
ByteDance. As of June 2023, the Committee on Foreign Investment in the United States (CFIUS)—which was charged with reviewing the national security implications of the agreement—had not reached a decision regarding TikTok’s possible forced divestiture or other requirements. ByteDance. Secretary Mnuchin said that CFIUS will review the proposal and present President Trump with its opinion.
On September 19, 2020, Oracle announced that Walmart would join its bid for TikTok, with the
On September 19, 2020, Oracle announced that Walmart would join its bid for TikTok, with the
two companies acquiring 20% of a newly formed company, TikTok Global,two companies acquiring 20% of a newly formed company, TikTok Global,
39 with33 and the remaining the remaining
80% owned by ByteDance. According to announcements made by the companies, 40% of 80% owned by ByteDance. According to announcements made by the companies, 40% of
ByteDance is owned by U.S. investors, ByteDance is owned by U.S. investors,
which is meant to indicateso that the new company would be under majority U.S. ownership.34 However, this arrangement, along with TikTok keeping the For You recommendation engine algorithm,35 would not appear to satisfy the conditions of E.O. 13942.
On September 23, 2020, TikTok filed for, and was granted, an injunction in federal court to stop the ban on the app that was set to take effect on September 27, 2020. TikTok was granted an extension until November 27, 2020, to persuade the U.S. government to approve the deal with
29 Lauren Maranto, “Who Benefits from China’s Cybersecurity Laws?” Center for Strategic and International Studies, June 25, 2020, https://www.csis.org/blogs/new-perspectives-asia/who-benefits-chinas-cybersecurity-laws.
30 Timothy B. Lee, “China Announces New Export Rules That Could Prevent Sale of Tiktok,” ArsTechnica.com, August 31, 2020, https://arstechnica.com/tech-policy/2020/08/china-announces-new-export-rules-that-could-prevent-sale-of-tiktok/. (Hereinafter, “China Announces New Export Rules That Could Prevent Sale of Tiktok.”)
31 “China Announces New Export Rules That Could Prevent Sale of Tiktok.” 32 Larry Dignan, “With TikTok, Oracle Hopes Its Cloud Infrastructure Business Goes Viral,” ZDNet.com, September 21, 2020, https://www.zdnet.com/article/with-tiktok-oracle-hopes-its-cloud-infrastructure-business-goes-viral/.
33 “Walmart Statement About Potential Investment in and Commercial Agreements with TikTok Global,” Walmart, September 19, 2020, https://corporate.walmart.com/newsroom/2020/09/19/walmart-statement-about-potential-investment-in-and-commercial-agreements-with-tiktok-global.
34 Jordan Novet, Spencer Kimball, and Alex Sherman, “Trump Agrees to Tiktok Deal with Oracle and Walmart, Allowing App’s U.S. Operations to Continue,” September 22, 2020, CNBC.com, https://www.cnbc.com/2020/09/19/trump-says-he-has-approved-tiktok-oracle-deal-in-concept.html.
35 Isobel Asher Hamilton, “TikTok’s Deal with Oracle and Walmart Lets It Cling on to Its Most Valuable Asset—Its Algorithm,” BusinessInsider.com, September 21, 2020, https://www.businessinsider.com/tiktok-deal-lets-it-hold-onto-algorithm-2020-9.
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Oracle and Walmart. The extension date passed, but the Biden Administration did not enforce the ban that had been set to take effect.
Due to the ongoing CFIUS examination, as well as legislative and executive efforts to ban the app in the United States, in March 2023, TikTok was reported to be reconsidering a partnership with Oracle and Walmart.36 that the new company would
33 “China Announces New Export Rules That Could Prevent Sale of Tiktok.” 34 In addition to U.S. companies making a bid for TikTok in the United States, Centricus Asset Management and Triller are reported to have made a bid to buy TikTok’s operations in several other countries for $20 billion.
35 Kim Lyons, “Twitter and TikTok Reportedly Have Had Talks About a Deal,” TheVerge.com, August 8, 2020, at https://www.theverge.com/2020/8/8/21360259/twitter-and-tiktok-acquisition-trump-microsoft.
36 The Stanford Internet Observatory, a program of the Cyber Policy Center of the Freeman Spogli Institute for International Studies, is a cross-disciplinary program of research, teaching, and policy engagement for the study of abuse in current information technologies, with a focus on social media. Prior to his current position, Mr. Stamos served as Chief Security Officer of Facebook and Chief Information Security Officer at Yahoo. He has also been involved with securing the U.S. election system as a contributor to Harvard University’s Defending Digital Democracy Project.
37 Jordan Novet, “Oracle Confirms Deal with Tiktok-Owner Bytedance to Become ‘Trusted Technology Provider’,” CNBC.com, September 14, 2020, at https://www.cnbc.com/2020/09/14/oracle-confirms-deal-with-tiktok-owner-bytedance-to-become-trusted-technology-provider.html.
38 Larry Dignan, “With TikTok, Oracle Hopes Its Cloud Infrastructure Business Goes Viral,” ZDNet.com, September 21, 2020, at https://www.zdnet.com/article/with-tiktok-oracle-hopes-its-cloud-infrastructure-business-goes-viral/.
39 “Walmart Statement About Potential Investment in and Commercial Agreements with TikTok Global,” Walmart, September 19, 2020, at https://corporate.walmart.com/newsroom/2020/09/19/walmart-statement-about-potential-investment-in-and-commercial-agreements-with-tiktok-global.
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be under majority U.S. ownership.40 However, this arrangement, along with TikTok keeping the For You recommendation engine algorithm,41 would not appear to satisfy conditions in President Trump’s Executive Orders. In addition to U.S. approval of the proposal being uncertain given its provisions, Chinese approval of the proposal is also uncertain. China’s new export regulations appear to forbid transfer of the For You algorithm, but the United States appears to require such a transfer. So, the legal requirements of each country are at odds with each other.
On September 23, 2020, TikTok filed for, and was granted, an injunction in federal court to stop the ban on the app that was set to take effect on September 27, 2020. TikTok has now been granted an extension until November 27, 2020, to persuade the U.S. government to approve the deal with Oracle and Walmart.
Discussion
Some believe TikTok and other apps developed and owned by Chinese companies pose a serious Some believe TikTok and other apps developed and owned by Chinese companies pose a serious
security risk to the United States because Chinese companies are governed by China’s security risk to the United States because Chinese companies are governed by China’s
Cybersecurity Law. Others believe that TikTok is caught up in increasing trade tensions between Cybersecurity Law. Others believe that TikTok is caught up in increasing trade tensions between
China and the United States.China and the United States.
42 37
Threat to Security
Although TikTok forcefully states that it does not share U.S. user data with the Chinese Although TikTok forcefully states that it does not share U.S. user data with the Chinese
government, many security and privacy advocates are skeptical. government, many security and privacy advocates are skeptical.
For example, in addition to the lawsuit cited above (see “Data Sharing”), the American Civil Liberties Union argues that “Chinese apps in particular have a reputation for grabbing more data than required to provide their services, often sending information to advertising networks … [they] are frequently far more abusive than others….”43 The Chinese government obtains data about and created by its own citizens, for purposes that range from censorship to mass surveillance.44
Other countries have also taken actionTikTok did admit that employees in China had accessed the data of a few U.S. journalists in 2022. That incident is being investigated by Justice Department.38
Other countries have acted against TikTok on the grounds of security. India banned against TikTok on the grounds of security. India banned
TikTok and 50 other Chinese apps in June 2020, calling them a “threat to sovereignty and TikTok and 50 other Chinese apps in June 2020, calling them a “threat to sovereignty and
integrity.”integrity.”
4539 Also in June 2020, the European Union opened an investigation into TikTok to Also in June 2020, the European Union opened an investigation into TikTok to
examine possible violations of its General Data Protection Regulation (GDPR).examine possible violations of its General Data Protection Regulation (GDPR).
4640 Australia had threatened to ban the app, but on August 4, 2020, the country’s Prime Minister indicated that TikTok would not be banned;41 however, in March 2023, 68 federal agencies in that country banned the app on work-related phones. At least 15 other countries have partially or completely banned the app in 2022 and 2023.42
36 Dan Berthiaume, “Report: TikTok may be considering Walmart/Oracle deal again,” Chain Store Age, March 17, 2023, https://chainstoreage.com/report-tiktok-may-be-considering-walmartoracle-deal-again.
37 Kent Calder, “Opening Japan,” Foreign Policy, vol. 47 (Summer 1982), pp. 82-97, Australia had
40 Jordan Novet, Spencer Kimball, and Alex Sherman, “Trump Agrees to Tiktok Deal with Oracle and Walmart, Allowing App’s U.S. Operations to Continue,” September 22, 2020, CNBC.com, at https://www.cnbc.com/2020/09/19/trump-says-he-has-approved-tiktok-oracle-deal-in-concept.html.
41 Isobel Asher Hamilton, “TikTok’s Deal with Oracle and Walmart Lets It Cling on to Its Most Valuable Asset—Its Algorithm,” BusinessInsider.com, September 21, 2020, at https://www.businessinsider.com/tiktok-deal-lets-it-hold-onto-algorithm-2020-9.
42 Kent Calder, “Opening Japan,” Foreign Policy, vol. 47 (Summer 1982 1982), pp. 82-97, at http://www.jstor.com/http://www.jstor.com/
stable/1148443. (Hereinafter, “Opening Japan.”) stable/1148443. (Hereinafter, “Opening Japan.”)
43 “TikTok User Data: What Does the App Collect and Why Are U.S. Authorities Concerned?” 44 Isobel Cockerell, “Inside China’s Massive Surveillance Operation,” Wired.com, May 9, 2019, at https://www.wired.com/story/inside-chinas-massive-surveillance-operation/.
4538 Clare Duffy, “TikTok Confirms That Journalists’ Data Was Accessed by Employees of Its Parent Company,” CNN, December 22, 2022, https://www.cnn.com/2022/12/22/tech/tiktok-bytedance-journalist-data/index.html.
39 Kari Paul, “Should You Delete Tiktok? Here’s What Experts Say About the App Trump Wants to Ban,” Kari Paul, “Should You Delete Tiktok? Here’s What Experts Say About the App Trump Wants to Ban,”
The
Guardian, July 16, 2020, , July 16, 2020,
at https://www.theguardian.com/technology/2020/jul/16/tiktok-video-sharing-app-should-https://www.theguardian.com/technology/2020/jul/16/tiktok-video-sharing-app-should-
you-delete-it. you-delete-it.
4640 Stephanie Bodoni, “TikTok Faces Scrutiny from Eu Watchdogs over Data Practices,” Stephanie Bodoni, “TikTok Faces Scrutiny from Eu Watchdogs over Data Practices,”
Bloomberg.com, June 10, 2020 , June 10, 2020
(updated June 11, 2020), at https://www.bloomberg.com/news/articles/2020-06-10/tiktok-faces-scrutiny-from-eu-(updated June 11, 2020), at https://www.bloomberg.com/news/articles/2020-06-10/tiktok-faces-scrutiny-from-eu-
watchdogs-over-privacy-practices. For more information on the GDPR, see CRS In Focus IF10896, watchdogs-over-privacy-practices. For more information on the GDPR, see CRS In Focus IF10896,
EU Data
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threatened to ban the app, but on August 4, 2020, the country’s Prime Minister indicated that TikTok would not be banned; however, he warned Australians against the app, saying it “connects right back to China.”47 Japan, Turkey, and Pakistan48 have also taken various measures to protect their countries’ users from possibly security risks.49Protection Rules and U.S. Implications, by Rachel F. Fefer and Kristin Archick.
41 Stephen Dziedzic, “TikTok Ban ‘Not Necessary’ but Prime Minister Scott Morrison Urges Caution over App’s China Connection,” Australian Broadcasting Corporation News, August 4, 2020, https://www.abc.net.au/news/2020-08-05/prime-minister-scott-morrison-says-government-wont-ban-tiktok/12526246.
42 Daniel Ruby, “How Many Countries Have Banned TikTok (2023 Data),” DemandSage.com, May 4, 2023, https://www.demandsage.com/tiktok-banned-countries.
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Technology Trade Protectionism
Other observers argue that TikTok is caught in “the crosshairs of a global technology battle,”Other observers argue that TikTok is caught in “the crosshairs of a global technology battle,”
5043 and that a unilateral U.S. ban on any app may be comparable to China’s “Great Firewall.”and that a unilateral U.S. ban on any app may be comparable to China’s “Great Firewall.”
5144 One One
way to potentially understand U.S. and Chinese government actions in this dispute may be way to potentially understand U.S. and Chinese government actions in this dispute may be
through the concept of techno-nationalism,through the concept of techno-nationalism,
5245 which refers to a country’s refusal or reluctance to which refers to a country’s refusal or reluctance to
import other countries’ advanced technology, as well as to export, or to allow other nations to import other countries’ advanced technology, as well as to export, or to allow other nations to
benefit from, its own advanced technology. Within this framework, technology is considered a benefit from, its own advanced technology. Within this framework, technology is considered a
central pillar of a country’s wellbeing: central pillar of a country’s wellbeing:
Techno-nationalism … links technological innovation and capabilities directly to a nation’s
Techno-nationalism … links technological innovation and capabilities directly to a nation’s
national security, economic prosperity, and social stability.… [It] seeks to attain national security, economic prosperity, and social stability.… [It] seeks to attain
competitive advantage for its stakeholders, both locally and globally, and leverage these competitive advantage for its stakeholders, both locally and globally, and leverage these
advantages for geopolitical gain.advantages for geopolitical gain.
5346
One policy mechanism that nations use to protect what they view as important or sensitive
One policy mechanism that nations use to protect what they view as important or sensitive
technologies technologies
areis export controls, rules export controls, rules
whichthat limit to which foreign entities and under what limit to which foreign entities and under what
circumstances or conditions specific technologies may be sold or licensed.circumstances or conditions specific technologies may be sold or licensed.
5447 For example, in For example, in
August 2020, the Bureau of Industry and Security at the Department of Commerce announced August 2020, the Bureau of Industry and Security at the Department of Commerce announced
sanctions that restrict foreign semiconductor companies from selling chips developed or produced sanctions that restrict foreign semiconductor companies from selling chips developed or produced
Protection Rules and U.S. Implications, by Rachel F. Fefer and Kristin Archick.
47 Stephen Dziedzic, “TikTok Ban ‘Not Necessary’ but Prime Minister Scott Morrison Urges Caution over App’s China Connection,” Australian Broadcasting Corporation News, August 4, 2020, at https://www.abc.net.au/news/2020-08-05/prime-minister-scott-morrison-says-government-wont-ban-tiktok/12526246.
48 Pakistan had banned the app on October 9, 2020, but rescinded the ban 10 days later after TikTok provided assurances “that they will block all accounts repeatedly involved in spreading obscenity and immorality.” Salman Masood, “Pakistan Rescinds TikTok Ban.” New York Times, October 19, 2020, at https://www.nytimes.com/2020/10/19/business/pakistan-tiktok-ban.html.
49 Jennifer Hassan and Ruby Mellen, “It’s Not Just the United States: These Governments See Tiktok as a Growing Problem,” Washington Post, August 3, 2020, at https://www.washingtonpost.com/world/2020/08/03/its-not-just-united-states-these-governments-see-tiktok-growing-problem/.
50 “Is It Time to Delete Tiktok? A Guide to the Rumors and the Real Privacy Risks.” 51 Kevin Roose, “Don’t Ban TikTok. Make an Example of It.” New York Times, July 26, 2020, at using U.S. software or technology to Huawei, another Chinese company, without first obtaining a license to do so.48 This restriction has been called a “lethal blow”49 to the company.
Another mechanism is the use of protectionist practices that privilege domestic entities’ access to domestic markets. For example, China requires U.S. telecommunications companies to enter a partnership with a Chinese company to provide services in that country. In June 2020, the Senate Committee on Homeland Security and Governmental Affairs Permanent Subcommittee on Investigations issued a report, “Threats to US Networks: Oversight of Chinese Government Owned Carriers.” The report notes that while China has access to the U.S. telecommunications market, U.S. companies do not have that same level of access in China:
China does not provide US telecommunications companies reciprocal access to the Chinese market and requires foreign carriers seeking to operate in China to enter into joint ventures
43 “Is It Time to Delete Tiktok? A Guide to the Rumors and the Real Privacy Risks.” 44 Kevin Roose, “Don’t Ban TikTok. Make an Example of It.” New York Times, July 26, 2020, https://www.nytimes.com/2020/07/26/technology/tiktok-china-ban-model.html. The “Great Firewall” has been https://www.nytimes.com/2020/07/26/technology/tiktok-china-ban-model.html. The “Great Firewall” has been
described as “a system of surveillance and blocking technology that prevents Chinese citizens from viewing websites described as “a system of surveillance and blocking technology that prevents Chinese citizens from viewing websites
outside the country.” Danny O’Brien, “China’s Global Reach: Surveillance and Censorship Beyond the Great outside the country.” Danny O’Brien, “China’s Global Reach: Surveillance and Censorship Beyond the Great
Firewall,” Firewall,”
Electronic Frontier Foundation, October 10, 2019, , October 10, 2019,
at https://www.eff.org/deeplinks/2019/10/chinas-global-https://www.eff.org/deeplinks/2019/10/chinas-global-
reach-surveillance-and-censorship-beyond-great-firewall. reach-surveillance-and-censorship-beyond-great-firewall.
5245 “Opening Japan.” “Opening Japan.”
5346 Alex Capri, “Techno-Nationalism: What Is It and How Will It Change Global Commerce?” Alex Capri, “Techno-Nationalism: What Is It and How Will It Change Global Commerce?”
Forbes.com, December , December
20, 2019, 20, 2019,
at https://www.forbes.com/sites/alexcapri/2019/12/20/techno-nationalism-what-is-it-and-how-will-it-change-https://www.forbes.com/sites/alexcapri/2019/12/20/techno-nationalism-what-is-it-and-how-will-it-change-
global-commerce/#f8e22c0710f7. global-commerce/#f8e22c0710f7.
5447 For more information on U.S. export controls and China, see CRS In Focus IF11627, For more information on U.S. export controls and China, see CRS In Focus IF11627,
U.S. Export Control Reforms
and China: Issues for Congress, by Ian F. Fergusson and Karen M. SutterControls and China, by Karen M. Sutter and Christopher A. Casey. For more general information on U.S. export . For more general information on U.S. export
controls, see CRS Report R41916, controls, see CRS Report R41916,
The U.S. Export Control System and the Export Control Reform Initiative, by Ian F. , by Ian F.
Fergusson and Fergusson and
Paul K. Kerr.
48 “Commerce Department Further Restricts Huawei Access to U.S. Technology and Adds Another 38 Affiliates to the Entity List,” U.S. Department of Commerce, August 17, 2020, https://www.commerce.gov/news/press-releases/2020/08/commerce-department-further-restricts-huawei-access-us-technology-and.
49 Sherisse Pham, “New Sanctions Deal ‘Lethal Blow’ to Huawei. China Decries US Bullying,” CNN.com, August 18, 2020, https://www.cnn.com/2020/08/17/tech/huawei-us-sanctions-hnk-intl/index.htmlPaul K. Kerr. .
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with Chinese companies. These joint ventures often require U.S. companies to give their technology, proprietary know-how, and intellectual property to their Chinese partners.
Since China was allowed to join the World Trade Organization in 2001, the report notes that “not a single foreign firm has succeeded in establishing a new joint venture” to provide basic telecommunications services in China.
Congressional Action in the 118th Congress Controversy followed TikTok from the 117th Congress into the 118th Congress. Some Members have introduced various bills that would affect TikTok’s ability to continue operating in the United States, and the House Committee on Energy and Commerce has held a hearing on TikTok.
Legislation Representative Michael McCaul introduced the Deterring America’s Technological Adversaries (DATA) Act (H.R. 1153, H.Rept. 118-63) on February 24, 2023. Among other provisions, the bill would require federal actions to protect the sensitive personal data of U.S. persons, with a particular focus on prohibiting the transfer of such data to foreign persons influenced by China. It would also require the Department of the Treasury to issue a directive prohibiting U.S. persons from engaging in any transaction with any person who knowingly provides or may transfer sensitive personal data subject to U.S. jurisdiction to any foreign person subject to Chinese influence. The bill was reported by the Committee on Foreign Affairs on May 16, 2023, and placed on the Union Calendar, Calendar No. 43, the same day.
Representative Kat Cammack introduced the Chinese-owned Applications Using the Information of Our Nation (CAUTION) Act of 2023 (H.R. 750) on February 2, 2023. The bill would require any person who sells or distributes the social media application TikTok (or any service developed or provided by ByteDance Ltd.) to disclose, prior to download, that the use of the application is prohibited on government-owned devices. The bill was ordered to be reported, amended, on March 9, 2023, by the House Committee on Energy and Commerce.
Representative Ken Buck introduced the No TikTok on United States Devices Act (H.R. 503) on January 25, 2023. Among other provisions, the bill would impose sanctions on the parent company of the TikTok social media service, ByteDance Ltd., as long as it is involved with TikTok. Specifically, the President would be required to impose property-blocking sanctions on ByteDance or any successor entity or subsidiary if it is involved in matters relating to (1) TikTok or any successor service; or (2) information, video, or data associated with such a service. Additionally, the bill would require the Office of the Director of National Intelligence (ODNI) to report to Congress on any national security threats posed by TikTok, including the ability of China’s government to access or use the data of U.S. users of TikTok. Within 180 days of the bill’s enactment, ODNI would be required to brief Congress on the implementation of the bill. On February 27, 2023, the bill was referred to the Subcommittee on the National Intelligence Enterprise.
Senator Josh Hawley introduced the No TikTok on United States Devices Act (S. 85) on January 25, 2023. The bill is substantially similar to H.R. 503. On January 25, 2023, the bill was referred to the Committee on Banking, Housing, and Urban Affairs.
Representative Brian Babin introduced the Terminate TikTok on Campus Act of 2023 (H.R. 231) on January 10, 2023. The bill would prohibit federal funds from being provided to an institution of higher education unless the institution has banned use of TikTok on electronic
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devices. The bill was referred to the House Committee on Education and the Workforce the same day it was introduced.
Representative Jack Bergman introduced the Protecting Personal Data from Foreign Adversaries Act (H.R. 57) on January 9, 2023. Among other provisions, the bill would authorize sanctions and other prohibitions relating to software that engages in user data theft on behalf of certain foreign countries or entities, and allow the President to regulate or prohibit transactions using software that engages in the theft or unauthorized transmission of user data and provides access to such data to a communist country, the Chinese Communist Party, a foreign adversary, or a state sponsor of terrorism. Additionally, the bill would allow the President to impose visa- and property-blocking sanctions on developers and owners of software that makes unauthorized transmissions of user data to servers located in China that are accessible by China’s government or the Chinese Communist Party. It would also require the Department of State to determine and report to Congress whether WeChat or TikTok fall within certain regulations and prohibitions.
Other bills introduced in the 118th Congress would likely impact TikTok without explicitly naming the company. For example, the RESTRICT Act (S. 686) would create new authorities for the Secretary of Commerce to review and prohibit certain information and communications technology (ICT)-related transactions with foreign entities. These authorities could impact foreign entities such as TikTok. On January 9, 2023, the bill was referred to the Committee on Foreign Affairs and the Committee on the Judiciary for consideration of such provisions that fall within the jurisdiction of those committees.
Hearing On March 23, 2023, the House Committee on Energy and Commerce held a full committee hearing, “TikTok: How Congress Can Safeguard American Data Privacy and Protect Children from Online Harms.” During that hearing, Members questioned the TikTok Chief Executive Officer (CEO) Shou Zi Chew for approximately five hours about the safety and security of the app, including his company’s relationship with China, possible teen addiction to the app, and misinformation being spread on the app. In particular, some Members expressed concern that TikTok’s parent company, ByteDance, might be sharing U.S. users’ data with the Chinese government.50
After the hearing, a TikTok spokesperson, Brooke Oberwetter, stated that the day had been “dominated by political grandstanding” that didn’t acknowledge TikTok’s current attempts to address the issues raised by the lawmakers. Oberwetter also noted:
not mentioned today by members of the committee: the livelihoods of the 5 million businesses on TikTok or the First Amendment implications of banning a platform loved by 150 million Americans.51
The hearing does not appear to have settled the underlying dispute between the U.S. government and TikTok. There is no publicly available evidence that the Chinese government has accessed the information of U.S. users, but national security experts say it is a possibility. TikTok says that the Chinese government has never been shown to have influenced the app’s recommendation algorithm, though experts say it is hypothetically possible.52 TikTok has admitted that company
50 Dara Kerr, “Lawmakers Grilled TikTok CEO Chew for 5 Hours in a High-Stakes Hearing About the App,” NPR, March 23, 2023, https://www.npr.org/2023/03/23/1165579717/tiktok-congress-hearing-shou-zi-chew-project-texas.
51 Ibid. 52 Ibid.
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employees in China accessed the data of a few U.S. journalists, an incident that is being investigated by Justice Department.53
Conclusion The variety of apps available to U.S. users is enormous. Situations similar to the case of TikTok may arise in the future with other apps created by foreign companies. Congress may wish to consider various options to address such situations, including
TikTok: Technology Overview and Issues
using U.S. software or technology to Huawei, another Chinese company, without first obtaining a license to do so.55 This restriction has been called a “lethal blow”56 to the company.
Another mechanism is the use of protectionist practices that privilege domestic entities’ access to domestic markets. For example, China requires U.S. telecommunications companies to enter into a partnership with a Chinese company to provide services in that country. In June 2020, the Senate Committee on Homeland Security and Governmental Affairs Permanent Subcommittee on Investigations issued a report, “Threats to US Networks: Oversight of Chinese Government Owned Carriers.” The report notes that while China has access to the U.S. telecommunications market, U.S. companies do not have that same level of access in China.
China does not provide US telecommunications companies reciprocal access to the Chinese market and requires foreign carriers seeking to operate in China to enter into joint ventures with Chinese companies. These joint ventures often require U.S. companies to give their technology, proprietary know-how, and intellectual property to their Chinese partners.
Since China was allowed to join the World Trade Organization in 2001, the report notes that “not a single foreign firm has succeeded in establishing a new joint venture” to provide basic telecommunications services in China.”
Related Congressional Activity
Congress began taking an interest in TikTok as early as October 2019, when Senator Marco Rubio reportedly called for a formal investigation into whether TikTok posed a national security risk.57 Later that month, Senators Charles Schumer and Tom Cotton sent a letter58 to the Acting Director of National Intelligence, Joseph Maguire, expressing their concerns about TikTok and the national security risks they believe it poses. More formally, Congress has scrutinized TikTok in two hearings, and Members have introduced three related bills.
Hearings
The Senate Judiciary Committee’s Subcommittee on Crime and Terrorism has held two hearings on, among other topics, the impact of Chinese smartphone apps on U.S. citizens’ privacy:
“How Corporations and Big Tech Leave Our Data Exposed to Criminals, China,
and Other Bad Actors” was held on November 5, 2019.59
“Dangerous Partners: Big Tech and Beijing” was held on March 4, 2020.60
55 “Commerce Department Further Restricts Huawei Access to U.S. Technology and Adds Another 38 Affiliates to the Entity List,” U.S. Department of Commerce, August 17, 2020, at https://www.commerce.gov/news/press-releases/2020/08/commerce-department-further-restricts-huawei-access-us-technology-and.
56 Sherisse Pham, “New Sanctions Deal ‘Lethal Blow’ to Huawei. China Decries US Bullying,” CNN.com, August 18, 2020, at https://www.cnn.com/2020/08/17/tech/huawei-us-sanctions-hnk-intl/index.html.
57 Makena Kelly, “TikTok Should Be Investigated for Censorship, Marco Rubio Says,” TheVerge.com, October 9, 2019, at https://www.theverge.com/2019/10/9/20906971/tiktok-censorship-china-bytedance-musically-marco-rubio-senate-mnuchin-cfius-treasury.
58 Senator Tom Cotton, “Cotton, Schumer Request Assessment of National Security Risks Posed by China-Owned Video-Sharing Platform, Tiktok, a Potential Counterintelligence Threat with over 110 Million Downloads in U.S., Alone,” press release, October 24, 2019, at https://www.cotton.senate.gov/?p=press_release&id=1239. 59 The hearing page with archived video and other documents is online at https://www.judiciary.senate.gov/meetings/how-corporations-and-big-tech-leave-our-data-exposed-to-criminals-china-and-other-bad-actors.
60 The hearing page with archived video and other documents is online at https://www.judiciary.senate.gov/meetings/
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TikTok was invited to testify at these hearings, but declined to appear.61
Legislation
Three bills have been introduced that would prohibit the use of TikTok and WeChat on U.S. government devices:
S. 445262 is a bill to prohibit federal employees from downloading or using
WeChat on government devices. It was introduced on August 5, 2020, by Senator John Kennedy and referred to the Senate Homeland Security and Governmental Affairs the same day.
S. 3455,63 the No TikTok on Government Devices Act, was introduced on March
12, 2020, by Senator Josh Hawley. This bill was passed by the Senate on August 6, 2020, and received in the House the following day. (See S.Rept. 116-250.64)
H.R. 6896,65 also called the No TikTok on Government Devices Act, is the House
companion bill to S. 3455. It was introduced on May 15, 2020, by Representative Ken Buck and referred to the House Committee on Oversight and Reform and the House Committee on Administration the same day.
Conclusion
The variety of apps available to U.S. users is enormous. Situations similar to the case of TikTok may arise in the future with other apps created by foreign companies. Congress may consider taking one or both of two parallel approaches to address such situations: (1) developing an : (1) developing an
overarching legal and regulatory framework to protect the security and privacy of U.S. citizens’ overarching legal and regulatory framework to protect the security and privacy of U.S. citizens’
data and communications, and (2) establishing a uniform, transparent process to assess the risks data and communications, and (2) establishing a uniform, transparent process to assess the risks
posed by foreign apps and establish mechanisms to mediate those risks. posed by foreign apps and establish mechanisms to mediate those risks.
dangerous-partners-big-tech-and-beijing.
61 Tony Romm, “Apple, TikTok Decline to Testify at Second Congressional Hearing Probing Tech’s Ties to China,” Washington Post, February 24, 2020, at https://www.washingtonpost.com/technology/2020/02/24/apple-tiktok-congress-hearing-china/.
62 The latest information on this legislation is available online at https://www.congress.gov/bill/116th-congress/senate-bill/4452.
63 The latest information on this legislation is available online at https://www.congress.gov/bill/116th-congress/senate-bill/3455.
64 The report is available online at https://www.congress.gov/congressional-report/116th-congress/senate-report/250/1. 65 The latest information on this legislation is available online at https://www.congress.gov/bill/116th-congress/house-bill/6896.
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Appendix. What Is WeChat?
WeChat was released in January 2011 and in 2018 became the world’s most-used standalone mobile app, with over 1 billion monthly active users.66 WeChat has been described as China’s “app for everything”67 because of its wide range of functions. Through the app, users can send messages, make mobile payments for purchases and send money to other users,68 hail a ride, exchange contact information through Quick Response (QR) codes, share “moments” (similar to Facebook’s “Newsfeed”), buy tickets to movies, and book a hotel room—as well as many other activities. In the second quarter of 2020, the app had an estimated 1.2 billion monthly active users,69 up from about 889 million monthly active users in 2016.
Tencent, the Chinese company that owns WeChat, is the biggest video game company in the world. It was founded in 1998 and is worth about $500 billion as of May 2020.70 The company owns the U.S. game studio Riot Games, as well as a large stake in U.S.-based Epic Games, which developed the popular game Fortnite.
As with TikTok, researchers have found evidence that WeChat shares user data with the Chinese government: “Every day, millions of WeChat conversations held inside and outside China are flagged, collected, and stored in a database connected to public security agencies in China.”71 Some U.S. users have reported that their messages to friends, family, and colleagues in China stopped being delivered after they shared news articles critical of the Chinese government; once they stopped sharing such articles, their access was restored.72
Author Information
Patricia Moloney Figliola
Specialist in Internet and Telecommunications Policy
66 “Number of Monthly Active Wechat Users from 2nd Quarter 2011 to 2nd Quarter 2020,” Statista, August 20, 2020, at https://www.statista.com/statistics/255778/number-of-active-wechat-messenger-accounts/.
67 “How WeChat Became China’s App for Everything,” FastCompany.com, January 2, 2017, at https://www.fastcompany.com/3065255/china-wechat-tencent-red-envelopes-and-social-money. (Hereinafter, “How WeChat Became China’s App for Everything.”) 68 “How WeChat Became China’s App for Everything.” 69 “Number of Monthly Active Wechat Users from 2nd Quarter 2011 to 2nd Quarter 2020,” Statista, August 20, 2020, at https://www.statista.com/statistics/255778/number-of-active-wechat-messenger-accounts.
70 “WeChat Revenue and Usage Statistics (2020),” BusinessOfApps.com, July 30, 2020, at https://www.businessofapps.com/data/wechat-statistics/#1.
71 “China Intercepts WeChat Texts from U.S. and Abroad, Researchers Say,” NPR.org, August 29, 2019, at https://www.npr.org/2019/08/29/751116338/china-intercepts-wechat-texts-from-u-s-and-abroad-researcher-says. (Hereinafter, “China Intercepts WeChat Texts from U.S. and Abroad, Researchers Say.”) 72 “China Intercepts WeChat Texts From U.S. and Abroad, Researchers Say.”
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53 Clare Duffy, “TikTok Confirms That Journalists’ Data Was Accessed by Employees of Its Parent Company,” CNN, December 22, 2022, https://www.cnn.com/2022/12/22/tech/tiktok-bytedance-journalist-data/index.html.
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Appendix. Related Congressional Activity—117th Congress During the 117th Congress, 10 bills were introduced that would have affected the operation of TikTok in the United States; one became law. Four hearings were held that focused on TikTok’s operation in the United States.
Laws One TikTok-related bill became law in the 117th Congress.
• H.R. 2617 (P.L. 117-328), Consolidated Appropriations Act, 2023
Introduced by Gerald E. Connolly on April 16, 2021, and became law on December 29, 2022. The law, which adopted the provisions of S. 1143, prohibits the installation and use of the TikTok app on devices owned by the federal government.
Legislation Ten TikTok-related bills that did not become law were introduced in the 117th Congress.
• H.R. 8772, Block the Tok Act
Introduced by Representative Dusty Johnson and referred to the House Committee on Energy and Commerce Subcommittee on Consumer Protection and Commerce on September 6, 2022. This bill would have prohibited TikTok from accessing user data of U.S. citizens from within China and required the Federal Trade Commission to investigate whether TikTok engaged in unfair or deceptive practices. The bill also would have prohibited the download or use of TikTok at U.S. military installations, at certain federal agencies, and on federal government devices.
• H.R. 6837, No TikTok on Department of Homeland Security Devices Act
Introduced by Representative Michael Guest and referred to the House Committee on Homeland Security Subcommittee on Oversight, Management, and Accountability on February 25, 2022. This bill would have prohibited Department of Homeland Security (DHS) employees and contractors from using TikTok on DHS computers or other information technology equipment. It also would have required DHS to remove the application from DHS equipment. The bill included exceptions for law enforcement activities, national security interests and activities, and security researchers.
• H.R. 4793, Protecting Personal Data from Foreign Adversaries Act
Introduced by Representative Jack Bergman on July 29, 2021, and referred to the House Committee on the Judiciary Subcommittee Immigration and Citizenship and Subcommittee on Courts, Intellectual Property, and the Internet on November 1, 2022. This bill would have authorized sanctions and other prohibitions relating to software that engage in user data theft on behalf of certain foreign countries or entities. It also would have allowed the President to regulate or prohibit transactions using software that engages in the theft or unauthorized transmission
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of user data and provides access to such data to (1) a communist country, (2) the Chinese Communist Party, (3) a foreign adversary, or (4) a state sponsor of terrorism.
• H.R. 4521, United States Innovation and Competition Act of 2021
Introduced by Representative Eddie Bernice Johnson on July 29, 2021, and reported (amended) by the Committee on Science, Space, and Technology; passed/agreed to in the Senate on March 28, 2022. The bill would have required, with certain exceptions, that executive agencies requiring the remove TikTok and similar apps from their information technology.
• H.R. 3057, ACES Act of 2021
Introduced by Representative Lisa C. McClain on May 7, 2021, and referred to the House Committee Energy and Commerce Subcommittee on Consumer Protection and Commerce on May 10, 2021. This bill would have required certain actions related to ByteDance Ltd., the Chinese parent company of TikTok, including requiring ByteDance to divest itself of assets or property used to enable or support ByteDance’s operation of TikTok in the United States.
• S. 1260, United States Innovation and Competition Act of 2021
Introduced by Representative Charles E. Schumer on April 20, 2021, and passed the Senate on June 8, 2021. The bill would have required, with certain exceptions, that executive agencies remove TikTok and similar apps from their information technology.
• H.R. 2566, No TikTok on Government Devices Act
Introduced by Representative Ken Buck and referred to the House Committee on Oversight and Reform on April 15, 2021. This bill would have required, with certain exceptions, that TikTok be removed from the information technology of federal agencies.
• S. 1143, No TikTok on Government Devices Act
Introduced by Representative Josh Hawley on April 15, 2021, and received and held at the desk in the House on December 15, 2022. This bill was included as section 102 of Division R of the Consolidated Appropriations Act, 2023 (P.L. 117-328) and requires TikTok to be removed from the information technology of federal agencies.
• S. 47, APP Act
Introduced by Representative Marco Rubio and referred to the Senate Committee on Commerce, Science, and Transportation on January 26, 2021. This bill would have established requirements for owners and operators of certain software (e.g., TikTok) from specified countries who make their software available to consumers in the United States. For example, before making such software available for download, the software would have been required to provide users with a warning to include the name of the owner and the owner’s country of principal operation.
Hearings Three hearings were held in the Senate and one joint hearing was held that focused on issues related to TikTok.
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• U.S.-China Relations: Improving U.S. Competitiveness Through Trade (S. Hrg.
117-351)54 Senate Committee on Finance April 22, 2021.
• Congressional-Executive Commission on China (Annual Report 2022)55
Joint Hearing November 3, 2022.
• Emerging Technologies and Their Impact on National Security (S. Hrg. 117-
148)56 Senate Committee on Armed Services February 23, 2021.
• Nominations of the 117th Congress, Second Session, Part II (S. Hrg. 117-642)57
Senate Committee on Foreign Relations June 23, 2022, through November 30, 2022.
Author Information
Patricia Moloney Figliola
Specialist in Internet and Telecommunications Policy
Acknowledgments
This report includes contributions from Kristen Busch, Analyst in Science and Technology Policy.
54 Information on this hearing can be found at https://www.govinfo.gov/app/details/CHRG-117shrg48401/CHRG-117shrg48401/context.
55 Information on this hearing can be found at https://www.govinfo.gov/app/details/CHRG-117jhrg47949/CHRG-117jhrg47949/context.
56 Information on this hearing can be found at https://www.govinfo.gov/app/details/CHRG-117shrg46695/CHRG-117shrg46695/context.
57 Information on this hearing can be found at https://www.govinfo.gov/app/details/CHRG-117shrg51737/CHRG-117shrg51737/context.
Congressional Research Service
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TikTok: Technology Overview and Issues
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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