US to control TikTok's algorithm under new deal with China
What's the story
The White House has announced a major deal that would give American companies control over the TikTok algorithm. The agreement also lets Americans hold six out of seven board seats for the app's US operations, leaving ByteDance with just one board member for the new entity. The announcement comes as part of ongoing negotiations with China, and could be signed "in the coming days," according to White House Press Secretary Karoline Leavitt. However, Beijing is yet to comment.
Tech involvement
Oracle to oversee data and privacy
Leavitt also revealed that tech giant Oracle will be in charge of data and privacy for the app in the US. The company is chaired by Larry Ellison, a billionaire and Trump ally. "The algorithm will also be controlled by America as well," Leavitt said, adding that all details have already been agreed upon, and now they just need to sign this deal.
International talks
Trump, Xi discuss potential TikTok deal
US President Donald Trump and Chinese President Xi Jinping recently discussed a deal on the future of TikTok's US operations. The call was described as "productive" by Trump, who said he "appreciated" Xi's engagement in the discussion. However, China's Commerce Ministry was less clear about the deal, stating that "China's position on TikTok is clear.... to carry out commercial negotiations in accordance with market rules to reach a solution compliant with China's laws and regulations."
Algorithm control
Ownership of TikTok's algorithm a major sticking point
The ownership of TikTok's powerful algorithm, which pushes content to its American users, has been a major sticking point in the US-China negotiations. Leavitt said the TikTok algorithm "will be secured, retrained, and operated in the US outside of ByteDance's control." This is significant because in recent years, US officials have warned that China could use the algorithm to influence what Americans see on social media.
Legal developments
US Supreme Court upheld law banning app without divestment
In January, the US Supreme Court upheld a law banning the app unless ByteDance divested from its US operations. The app only went "dark" briefly at that time, before the ban was delayed. The US Department of Justice had earlier warned that TikTok's access to data of American users posed a national security threat of "immense depth and scale."