TikTok On Trial: To Ban Or Not To Ban?

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In this week’s newsletter, we take a look at the controversy around TikTok and how we got here.

Since the U.S. House of Representatives passed the bill that would force the sale of TikTok by its Chinese owners or face a ban in the country, there have been heightened discussions about the future of this app which is used by 170 million Americans. 

Most notably, former President Donald Trump, who previously supported banning TikTok, has been against this bill because he thinks that a ban would profit Meta Platforms Inc. and its CEO Mark Zuckerberg.

While TikTok has enlisted the help of its content creators to lobby Congress and thwart the potential ban, some people also think that the U.S. government might just be crying wolf again, and this bill may again end up being on the backburner. 

Source: Giphy

On the other hand, there are also people like Elon Musk, who think the bill constitutes more than just what’s on the surface, calling it a medium toward “complete internet censorship and Government control” on social media companies. 

Musk, who acquired Twitter, now rebranded as X, for $44 billion in October 2022, has previously criticized the bill saying that it goes beyond TikTok. 

According to the tech mogul, if the bill were solely targeted at the short-form video hosting service and its Chinese parent company ByteDance, it would only highlight “foreign control” as the issue, which is not the case.

TikTok's Wild Ride

The Early Days: Expansion and Scrutiny (2017-2019)

TikTok's global rise was swift. After merging with Musical.ly in 2017, the app quickly caught the attention of U.S. lawmakers.

By October 2019, concerns about national security, privacy, and censorship led to calls for a security review. TikTok's parent company, ByteDance, denied any foreign government influence.

Heightened Tension and Failed Deals (2020)

Scrutiny intensified in 2020. The U.S. launched a formal security review, while TikTok hired former Disney executive Kevin Mayer as CEO to ease concerns.

Still, controversies erupted over alleged censorship and child privacy violations.

President Trump threatened a ban or forced sale to U.S. companies, sparking a proposed (but uncertain) deal with Oracle and Walmart.

Shifting Tides, Ongoing Concerns (2021-2022)

President Biden's 2021 inauguration paused the immediate threat of a ban, but his administration ordered a broader review of foreign-owned apps.

TikTok continued to face criticism over data privacy. Meta (Facebook) launched a smear campaign against its rival, while the Federal Communications Commission (FCC) questioned TikTok's security.

Escalation and Influence (2023-2024)

The fight intensified in 2023-2024. The U.S. demanded ByteDance sell its TikTok stake, and legal battles ensued. Montana attempted the platform's first state-level ban.

Source: Giphy

However, in a surprising twist, both President Biden and Ivanka Trump joined TikTok in 2024, highlighting the platform's unavoidable influence on U.S. politics and culture despite ongoing security and privacy concerns.

This Week In Tech

In an interesting move, Microsoft has welcomed two founders of rival company, Inflection AI, into its fold.

Reports have emerged that Apple is in active discussions with Google to license the latter's Gemini AI models for future iPhone software features.

OpenAI, the parent company of ChatGPT, is reportedly preparing to launch an improved model, GPT-5, by mid-year.

Nvidia's newly unveiled GB200 AI superchip has been making waves in the tech community. It is reported to offer 8,470 times the computing performance of Nvidia's first AI supercomputer, the DGX-1.

Apple has developed a new multimodal AI with a staggering 30 billion parameters, potentially powering future text and vision features on iPhones.

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