United States lawmakers have voiced concerns regarding ByteDance’s deal to establish a majority American-owned joint venture for TikTok, aimed at preventing a U.S. ban on the social media app. Prominent figures in Congress are calling for thorough scrutiny of the agreement. TikTok is a social media platform used by over 200 million Americans. ByteDance is a Chinese technology company that develops and operates internet and mobile applications.
Representative Jack Moolenaar, chair of the House select committee on China, stated that the committee would oversee the deal. He raised concerns about China’s potential influence over TikTok’s algorithm and the security of American user data. Senator Ed Markey echoed these concerns, criticising the White House for a lack of transparency regarding the agreement’s details and whether TikTok’s algorithm is truly free of Chinese influence. He said that Congress has a responsibility to investigate the deal and ensure that any arrangement truly protects national security while keeping TikTok online.
The deal is a milestone for the social media firm after years of battles that began in August 2020, when President Donald Trump unsuccessfully tried to ban the app over national security concerns. ByteDance disclosed that TikTok USDS Joint Venture LLC would protect U.S. user data, apps, and algorithms through stringent data privacy and cybersecurity measures, while divulging limited details about the divestiture. The agreement stipulates that American and global investors will hold 80.1% of the venture, with ByteDance retaining a 19.9% stake.
Investors in the venture include Oracle, Silver Lake, MGX, Dell Family Office, Vastmere Strategic Investments, Alpha Wave Partners, Revolution, Merritt Way, Via Nova, Virgo LI, and NJJ Capital. Representative Ro Khanna has previously sought to repeal the 2024 law and said the “deal is once again causing uncertainty among many creators.” The Chinese Embassy in Washington has stated that its position on the TikTok issue remains consistent and clear, although it did not comment on whether it had approved the deal.
