The Prague Post - TikTok in the US goes American, but questions remain

EUR -
AED 4.249553
AFN 75.213133
ALL 96.186095
AMD 435.797137
ANG 2.071352
AOA 1061.085055
ARS 1612.158131
AUD 1.666249
AWG 2.082827
AZN 2.003128
BAM 1.961413
BBD 2.325375
BDT 141.6654
BGN 1.977886
BHD 0.436899
BIF 3437.822289
BMD 1.157126
BND 1.487023
BOB 7.97783
BRL 5.952603
BSD 1.154514
BTN 107.542752
BWP 15.839396
BYN 3.421049
BYR 22679.675822
BZD 2.321965
CAD 1.609759
CDF 2661.390701
CHF 0.923508
CLF 0.026855
CLP 1060.395255
CNY 7.96404
CNH 7.934635
COP 4261.71937
CRC 537.230414
CUC 1.157126
CUP 30.663847
CVE 110.939499
CZK 24.507262
DJF 205.644323
DKK 7.472608
DOP 70.150808
DZD 153.761626
EGP 63.006565
ERN 17.356895
ETB 181.316437
FJD 2.589301
FKP 0.874391
GBP 0.871403
GEL 3.100941
GGP 0.874391
GHS 12.740322
GIP 0.874391
GMD 85.057135
GNF 10156.680613
GTQ 8.832275
GYD 241.641499
HKD 9.066808
HNL 30.791277
HRK 7.534629
HTG 151.529043
HUF 381.295679
IDR 19753.303365
ILS 3.628441
IMP 0.874391
INR 107.489513
IQD 1515.835476
IRR 1522546.807854
ISK 144.398076
JEP 0.874391
JMD 182.020096
JOD 0.820447
JPY 184.585924
KES 150.540494
KGS 101.190926
KHR 4642.970373
KMF 494.092741
KPW 1041.416438
KRW 1732.090476
KWD 0.358363
KYD 0.962153
KZT 547.095609
LAK 25410.494318
LBP 103609.245137
LKR 364.268714
LRD 213.2003
LSL 19.514975
LTL 3.416693
LVL 0.699934
LYD 7.376645
MAD 10.850954
MDL 20.314661
MGA 4814.802931
MKD 61.695853
MMK 2430.095513
MNT 4134.772815
MOP 9.320773
MRU 46.424093
MUR 54.407734
MVR 17.877786
MWK 2009.347371
MXN 20.494963
MYR 4.662641
MZN 74.009975
NAD 19.520168
NGN 1596.985052
NIO 42.500861
NOK 11.191981
NPR 172.066167
NZD 2.022934
OMR 0.444919
PAB 1.154504
PEN 3.964604
PGK 4.983697
PHP 69.567573
PKR 322.895512
PLN 4.267441
PYG 7468.436769
QAR 4.217844
RON 5.095863
RSD 117.35691
RUB 90.833631
RWF 1690.56155
SAR 4.34485
SBD 9.309359
SCR 15.900445
SDG 695.433172
SEK 10.945692
SGD 1.484431
SHP 0.868144
SLE 28.461896
SLL 24264.37284
SOS 661.297919
SRD 43.219775
STD 23950.178542
STN 24.936072
SVC 10.101908
SYP 128.099164
SZL 19.509085
THB 37.611813
TJS 11.066168
TMT 4.049942
TND 3.377638
TOP 2.786082
TRY 51.6179
TTD 7.832516
TWD 36.934312
TZS 3008.528736
UAH 50.564261
UGX 4331.395037
USD 1.157126
UYU 46.753794
UZS 14088.012279
VES 547.86136
VND 30476.392949
VUV 137.981466
WST 3.200947
XAF 657.83382
XAG 0.01587
XAU 0.000247
XCD 3.127192
XCG 2.080754
XDR 0.817224
XOF 657.827342
XPF 119.331742
YER 276.092912
ZAR 19.435791
ZMK 10415.524495
ZMW 22.31104
ZWL 372.594202
  • RBGPF

    -13.5000

    69

    -19.57%

  • RIO

    -0.4400

    94.01

    -0.47%

  • AZN

    -0.6600

    202.83

    -0.33%

  • CMSC

    0.1400

    22.18

    +0.63%

  • BCE

    -0.1900

    24.26

    -0.78%

  • NGG

    -0.9300

    87.06

    -1.07%

  • GSK

    -0.3200

    56.37

    -0.57%

  • BCC

    0.5500

    73.75

    +0.75%

  • CMSD

    0.0900

    22.35

    +0.4%

  • BTI

    0.4300

    58.71

    +0.73%

  • RELX

    0.0200

    33.61

    +0.06%

  • RYCEF

    -0.2400

    15.75

    -1.52%

  • JRI

    0.1200

    12.73

    +0.94%

  • BP

    0.3600

    47.48

    +0.76%

  • VOD

    -0.0700

    15.14

    -0.46%

TikTok in the US goes American, but questions remain
TikTok in the US goes American, but questions remain / Photo: Olivier DOULIERY - AFP/File

TikTok in the US goes American, but questions remain

After a long legal saga, TikTok has established a majority American-owned joint venture to operate its US business, deflecting the threat of a ban over its Chinese ownership.

Text size:

Here is a look at the potential consequences of the deal -- if any -- for users and beyond:

- What it means for users -

Whether the 200 million users in the United States will notice any difference in their online experience remains unclear. After the deal, users don't need to download a new app, though they were prompted to accept new terms of service covering "new types of location information" and data usage.

At the heart of the ownership drama is TikTok's powerful algorithm, which US lawmakers feared could be weaponized for data or propaganda by the Chinese government. The new ownership has promised to "retrain" the app's magic sauce, but how that will affect the user experience is still unknown.

TikTok insists that US users will maintain a "global TikTok experience," meaning US creators can still be discovered internationally and businesses can "operate on a global scale."

However, the US-only algorithm raises questions.

"There are still questions of how this new entity will interact with other versions of TikTok globally," said Jennifer Huddleston of the CATO Institute in Washington.

She also wondered about "what influence the US government may have over the algorithm and the free speech concerns that could arise from this new arrangement."

A major investor in the new entity is Larry Ellison, who is also financing his son David's recent takeover of Paramount and bidding war to take over Warner Bros -- potentially giving the family unprecedented power over US media.

Creators are watching especially closely, since their popularity and income depend on the algorithm's mysterious workings. Some have already migrated to other platforms, frustrated or anxious about the political turmoil surrounding the app.

- What it means for TikTok -

Before President Donald Trump took office, TikTok's fate in the United States looked bleak. The app was even briefly switched off in its biggest market after exhausting all legal options.

The political chaos has likely taken a toll on TikTok, despite Trump ultimately coming to its rescue.

"TikTok remains incredibly popular in the US, but it's facing more competition than ever, particularly from Instagram Reels," said Emarketer analyst Minda Smiley.

The algorithm that took the world by storm five years ago is no longer unique. Instagram Reels and YouTube Shorts now offer similar experiences, retaining engagement and attracting advertisers at comparable scale.

According to Emarketer, while US TikTok users still spend more time on the app than on other social networks, that time is declining each year, "signaling that the app is struggling to keep users hooked in the way it once did."

- What it means for national security -

The divestment may have satisfied the Trump administration, but whether it will satisfy the lawmakers who passed the divest-or-ban law remains to be seen, warned University of Florida media professor Andrew Selepak.

"The TikTok deal has improved the privacy of exactly no one and has done nothing to improve national security," said Kate Ruane of the Washington-based Center for Democracy & Technology.

ByteDance now owns just under 20 percent of the company, with the rest spread across several mainly US companies.

However, John Moolenaar, the Republican chairman of the House Foreign Affairs Committee, has vowed to conduct full oversight of the agreement, signaling potential trouble ahead.

TikTok says key functions like e-commerce and marketing will remain tied to the global entity and that could be problematic.

"I don't know how you could accomplish e-commerce and not take data from me as an American user," Selepak said.

For Carl Tobias of the University of Richmond School of Law, "It seems like Trump has just eclipsed whatever Congress might have intended in terms of national security."

H.Dolezal--TPP