State Champ Radio ByteDance
President Joe Biden signed into law a national security bill on Wednesday that would force TikTok to be sold by its owner, ByteDance, or face a possible ban in the United States. Minutes later, TikTok CEO Shou Zi Chew responded with a video posted to the platform, declaring that “rest assured, we aren’t going anywhere.”
“Make no mistake, this is a ban, a ban on TikTok and a ban on you and your voice,” Chew says in the video. “Politicians may say otherwise. But don’t get confused.”
The legislation signed by Biden gives ByteDance nine months to sell TikTok, with a possible three-month extension if a sale is in progress. It would also keep ByteDance from controlling TikTok’s algorithm, which is credited with helping the app rocket in popularity.
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In his video, Chew suggests that freedom of speech will be the company’s argument against the ban, saying that the bill becoming law is “a disappointing moment, but it does not need to be a defining one.
“It’s actually ironic because the freedom of expression on TikTok reflects the same American values that make the United States a beacon of freedom,” he continues. “TikTok gives everyday Americans a powerful way to be seen and heard.”
To that end, Chew also seeks to reassure users that the app is not going anywhere anytime soon and to rally its users to weigh in publicly on how important TikTok is to them:
“You will still be able to enjoy TikTok like you always have, in fact, if you have a story about how TikTok impacts your life, we would love for you to share it to showcase exactly what we’re fighting for,” he says.
With the legislation now law, it is only a matter of time before TikTok sues to stop it, and the countdown clock has officially started. As of writing, barring a court-issued delay, ByteDance will have until Jan. 24, 2025, to find a buyer, or risk having the app wiped away from U.S. users.
“We are confident, and we will keep fighting for your rights in the courts,” Chew says in the video. “The facts and the Constitution are on our side and we expect to prevail.”
This article was originally published by The Hollywood Reporter.
The Senate passed legislation Tuesday night that would force TikTok’s China-based parent company to sell the social media platform under the threat of a ban, a contentious move by U.S. lawmakers that’s expected to face legal challenges and disrupt the lives of content creators who rely on the short-form video app for income.
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The TikTok legislation was included as part of a larger $95 billion package that provides foreign aid to Ukraine and Israel and was passed 79-18. It now goes to President Joe Biden, who said in a statement immediately after passage that he will sign it Wednesday.
A decision made by House Republicans last week to attach the TikTok bill to the high-priority package helped expedite its passage in Congress and came after negotiations with the Senate, where an earlier version of the bill had stalled. That version had given TikTok’s parent company, ByteDance, six months to divest its stakes in the platform. But it drew skepticism from some key lawmakers concerned it was too short of a window for a complex deal that could be worth tens of billions of dollars.
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The revised legislation extends the deadline, giving ByteDance nine months to sell TikTok, and a possible three-month extension if a sale is in progress. The bill would also bar the company from controlling TikTok’s secret sauce: the algorithm that feeds users videos based on their interests and has made the platform a trendsetting phenomenon.
TikTok did not immediately return a request for comment Tuesday night.
The passage of the legislation is a culmination of long-held bipartisan fears in Washington over Chinese threats and the ownership of TikTok, which is used by 170 million Americans. For years, lawmakers and administration officials have expressed concerns that Chinese authorities could force ByteDance to hand over U.S. user data, or influence Americans by suppressing or promoting certain content on TikTok.
“Congress is not acting to punish ByteDance, TikTok or any other individual company,” Senate Commerce Committee Chairwoman Maria Cantwell said. “Congress is acting to prevent foreign adversaries from conducting espionage, surveillance, maligned operations, harming vulnerable Americans, our servicemen and women, and our U.S. government personnel.”
Opponents of the bill say the Chinese government could easily get information on Americans in other ways, including through commercial data brokers that traffic in personal information. The foreign aid package includes a provision that makes it illegal for data brokers to sell or rent “personally identifiable sensitive data” to North Korea, China, Russia, Iran or entities in those countries. But it has encountered some pushback, including from the American Civil Liberties Union, which says the language is written too broadly and could sweep in journalists and others who publish personal information.
Many opponents of the TikTok measure argue the best way to protect U.S. consumers is through implementing a comprehensive federal data privacy law that targets all companies regardless of their origin. They also note the U.S. has not provided public evidence that shows TikTok sharing U.S. user information with Chinese authorities, or that Chinese officials have ever tinkered with its algorithm.
“Banning TikTok would be an extraordinary step that requires extraordinary justification,” said Becca Branum, a deputy director at the Washington-based Center for Democracy & Technology, which advocates for digital rights. “Extending the divestiture deadline neither justifies the urgency of the threat to the public nor addresses the legislation’s fundamental constitutional flaws.”
Sen. Ron Wyden, a Democrat who voted for the legislation, said he has concerns about TikTok, but he’s also worried the bill could have negative effects on free speech, doesn’t do enough to protect consumer privacy and could potentially be abused by a future administration to violate First Amendment rights.
“I plan to watchdog how this legislation is implemented,” Wyden said in a statement.
China has previously said it would oppose a forced sale of TikTok, and has signaled its opposition this time around. TikTok, which has long denied it’s a security threat, is also preparing a lawsuit to block the legislation.
“At the stage that the bill is signed, we will move to the courts for a legal challenge,” Michael Beckerman, TikTok’s head of public policy for the Americas, wrote in a memo sent to employees on Saturday and obtained by The Associated Press.
“This is the beginning, not the end of this long process,” Beckerman wrote.
The company has seen some success with court challenges in the past, but it has never sought to prevent federal legislation from going into effect.
In November, a federal judge blocked a Montana law that would ban TikTok use across the state after the company and five content creators who use the platform sued. Three years before that, federal courts blocked an executive order issued by then-President Donald Trump to ban TikTok after the company sued on the grounds that the order violated free speech and due process rights.
The Trump administration then brokered a deal that had U.S. corporations Oracle and Walmart take a large stake in TikTok. But the sale never went through.
Trump, who is running for president again this year, now says he opposes the potential ban.
Since then, TikTok has been in negotiations about its future with the secretive Committee on Foreign Investment in the United States, a little-known government agency tasked with investigating corporate deals for national security concerns.
On Sunday, Erich Andersen, a top attorney for ByteDance who led talks with the U.S. government for years, told his team that he was stepping down from his role.
“As I started to reflect some months ago on the stresses of the last few years and the new generation of challenges that lie ahead, I decided that the time was right to pass the baton to a new leader,” Andersen wrote in an internal memo that was obtained by the AP. He said the decision to step down was entirely his and was decided months ago in a discussion with the company’s senior leaders.
Meanwhile, TikTok content creators who rely on the app have been trying to make their voices heard. Earlier Tuesday, some creators congregated in front the Capitol building to speak out against the bill and carry signs that read “I’m 1 of the 170 million Americans on TikTok,” among other things.
Tiffany Cianci, a content creator who has more than 140,000 followers on the platform and had encouraged people to show up, said she spent Monday night picking up creators from airports in the D.C. area. Some came from as far as Nevada and California. Others drove overnight from South Carolina or took a bus from upstate New York.
Cianci says she believes TikTok is the safest platform for users right now because of Project Texas, TikTok’s $1.5 billion mitigation plan to store U.S. user data on servers owned and maintained by the tech giant Oracle.
“If our data is not safe on TikTok,” she said. “I would ask why the president is on TikTok.”
TikTok has returned to the bargaining table with Universal Music Group (UMG), but a fast-tracked Congressional bill that could result in the platform being sold, or, as a last result, banned in the United States may reach President Joe Biden’s desk before those negotiations are finished.
A source familiar with the talks says Bytedance — the Chinese company that owns TikTok — has returned to the bargaining table with UMG after the label group pulled its music from the social media platform at the end of January citing its refusal to address three “critical” issues: “appropriate compensation for our artists and songwriters,” “protecting human artists from the harmful effects of AI” and “online safety for TikTok’s users.”
It’s unclear whether any progress has resulted — neither UMG nor TikTok will comment — but ByteDance currently faces a more urgent, existential issue now that the Speaker of the House of Representatives has attached what’s being called the TikTok national security bill to the foreign aid package for Ukraine and Israel that is expected to move quickly through Congress. The House may vote on it as early this weekend and the Senate is expected to act quickly. If it passes in both houses, President Biden has promised to sign it immediately.
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Officially titled The Protecting Americans From Foreign Adversary Controlled Applications Act, the proposed legislation was drawn up after White House national security and intelligence leaders briefed House lawmakers on the potential dangers that TikTok, which is used by 170 million Americans, poses to the nation.
What the TikTok National Security Bill Does
If Biden signs the bill into law, ByteDance will have approximately a year from its enactment — the original bill gave it just 90 days — to sell TikTok to a buyer in a country that the United States does not consider a foreign adversary. If ByteDance, which has ties to the Chinese Communist Party and is subject to its government, refuses to divest itself of TikTok or does not meet the deadline, then the app could be banned from being downloaded or used in the United States.
Rick Lane, TikTok Coalition.org leader and child safety advocate, says the TikTok bill “is moving forward very quickly. The language between the House and Senate is so close — they are millimeters apart, and I think agreements are being made to bring them together. Unless something drastic happens, I don’t see this bill’s momentum slowing down, no matter who’s on the other side. That is why adding it to the foreign aid bill makes sense.”
At a time when Congress is mired in ideological infighting, particularly among Republicans, the House of Representatives moved with remarkable speed to mark up and pass the bill and send it to the Senate.
Despite a deluge of calls and messages from TikTok users protesting the legislation, the House passed it, 352 votes to 65, on March 13 — less than a week after national security and intelligence officials held a classified briefing for an executive session of the House Energy and Commerce Committee. A music industry source familiar with activity on Capitol Hill tells Billboard that, before the briefing started, “members and staffers devices were taken away, and the committee room’s AV systems and the like were removed.” Following the morning briefing, the committee marked up the bill that afternoon and voted unanimously to advance it to the full House of Representatives.
A classified intelligence briefing was also held in the Senate and prompted similar remarks of concern. Republican senator from Missouri Eric Schmitt told Axios that the Chinese-controlled platform’s “ability to spy is shocking.”
“We don’t know exactly what was briefed,” says the music industry source. “But what is absolutely crystal clear is that whatever has been presented to Congress members by the intelligence community is clearly driving this. You don’t see — particularly Congress members — reacting with that kind of dispatch and unanimity.”
A ‘Once-in-a-Lifetime’ Alarm
“This is really a once-in-a-lifetime kind of alarm,” the source adds. “People who have been around the Hill for decades don’t remember there ever being this level of concern.”
An unclassified 2024 Annual Threat Assessment issued by the Office of the Director of National Intelligence (ODNI) in February may offer a glimpse of these security concerns. The assessment reported that “China is demonstrating a higher degree of sophistication in its influence activity, including experimenting with generative AI. TikTok accounts run by a [People’s Republic of China] propaganda arm reportedly targeted candidates from both political parties during the U.S. midterm election cycle in 2022.”
In response, a TikTok spokesperson referred Billboard to its written response to the ODNI, dated March 15, which asserts that the social media platform “regularly takes action against deceptive behavior, including covert influence networks throughout the world, and has been transparent in reporting them publicly. TikTok has protected our platform through more than 150 elections globally,” the response continues, “and is continuing to work with electoral commissions, experts, and fact-checkers to safeguard our community during this historic election year.”
In addition to the intelligence briefings, Billboard obtained a slide presentation that one Capitol Hill source says has been shown to staffers for over 40 senators. The presentation cobbles together previously published articles, analyses and reports about TikTok’s alleged dissemination of disinformation and propaganda to much of the same demographic that uses the app for music discovery. (According to a 2024 Pew Research Center report, 56% of U.S. adults 18 to 34 use the platform and 52% of the users in this age group have posted a video to the platform.)
‘TikTok Is a News Organization‘
As one tech policy expert says, “TikTok is a news organization. Trends are indicating that up to 40% of adults 18-to-29 will be getting their news from TikTok in 2024. It’s their CNN or Fox News or MSNBC.”
One of the first slides, titled “TikTok Has Rapidly Evolved From an Entertainment to a News Platform, Enormously Expanding Its Influence on The U.S. Population,” includes a graph built from Pew Research Center data that shows 43% of TikTok users regularly got their news from the platform in 2023, nearly double the 22% that did so in 2020. Only X (59%) and Facebook (54%) were higher. And nearly a third of that 43% were adults under 30 years of age.
Although music’s role in TikTok’s alleged dispersal of disinformation is not examined in the presentation, the tech policy expert says it’s definitely a factor. A 2023 report released by the rights management startup Pex in February revealed that 85% of TikTok videos contain music, more than YouTube (84%), Instagram (58%) and Facebook (49%), and the tech policy expert says that music played on the platform often functions as an emotional gateway to propaganda.
“The power of music is what draws people to social interaction,” the source says. “They’re taking music that gets people excited and, for instance, following them with horrific videos — and the interaction of those data points creates this powerful tool to affect policy.” The expert adds that TikTok’s algorithm enables the platform to essentially tailor its approach to each user. “It’s no longer just one size fits all; the ability now is to take visual cues, music and sound and target each individual with what sets them off — and they can do that on a massive scale.
“The argument in favor of TikTok is that Meta and Alphabet are collecting data from even more people, but they are not based in an adversarial country,” the expert continues. “There’s another key difference as well. TikTok sends you videos that they think you are interested in no matter what. Most young people want to be influencers. In order to be an influencer on TikTok, you have to follow what’s trending, so your video is blasted to more people. You tag along with feeds. In the policy realm, if they want to influence public policy, your view is going to be whatever direction that feed is going in.”
A TikTok spokesperson responds: “There is absolutely no evidence to these assertions. We have clear rules prohibiting deceptive behaviors.”
‘They Deserve It’
The music industry’s view of the proceedings in Washington is mixed. The perspective of artists and songwriters is arguably best expressed by David Lowery, the artist rights activist and frontman for the bands Cracker and Camper Van Beethoven, who also was one of more than 200 creators that, in early April, signed an open letter to tech platforms urging them to stop using AI “to infringe upon and devalue the rights of human artists.”
“The rates TikTok pays artists are extremely low, and it has a history — at least with me — of using my catalog with no licenses,” Lowery says. “I just checked to make sure and there are plenty of songs that I wrote on TikTok, and I have no idea how they have a license for those songs.”
As a result, Lowery says that while “I’m kind of neutral as to whether TikTok needs to be sold to a U.S. owner, the bill pleases me in a general way because I feel that they’ve gotten away with abusing artists for so long that they deserve it. I realize the bill doesn’t punish them for doing that,” he continues, “but that’s why a lot of musicians feel they really deserve it.”
The consensus among label executives is that TikTok is not going anywhere, but were the app banned in the United States, they wouldn’t spill many tears. In early April, Billboard reported that two months after UMG pulled its music from TikTok, its market share and chart appearances had not been greatly affected. And though numerous UMG artists have devised workarounds to maintain a presence on TikTok, one senior label executive says, “When you’re looking at the competitive set for TikTok, you see a migration to YouTube, Instagram and Snap. And those platforms see a real opportunity, so they’re starting to lean in. The absence of TikTok would just mean migration to other platforms and, frankly, because those platforms monetize better, even if you lose a significant chunk of your audience, you’re still going to make more money.”
$8.7 Million For Lobbyists
Capitol Hill sources say ByteDance has enlisted a small army of lobbyists to keep TikTok on U.S. mobile devices. In 2023, ByteDance spent $8.7 million on lobbyists, according to the nonprofit government transparency organization OpenSecrets. That’s almost double the $4.9 million it dropped in 2022, although a TikTok spokesperson attributes the year-to-year increase to “a unique, one-time higher expenditure in the third quarter of 2023 that reflects the vesting of Restricted Stock Units related to the launch of our U.S. buyback program.” (Data for 2024 lobbyist expenditures were not available at publication time.)
That 2023 outlay was the fourth-highest amount spent on lobbyists by a tech company that year, behind Meta ($19.3 million); Amazon.com (nearly $19.3 million) and Alphabet (almost $12.4 million). In 2019, ByteDance spent less than $1 million on lobbyists.
Lobbyists hired by ByteDance include Rosemary Gutierrez, the former deputy chief of staff for Democratic Senator Maria Cantwell of Washington, who chairs the Senate Commerce Committee — which will review the TikTok legislation before a floor vote is taken — and Kellyanne Conway, former senior counselor to President Donald Trump. Conway is reportedly considering joining Trump’s reelection campaign, but last month, Politico reported that she was working for the conservative Club for Growth to lobby on TikTok’s behalf.
One of the Club for Growth’s biggest donors is billionaire Jeffrey Yass, who owns 15% of ByteDance, which is reportedly worth roughly $40 billion. Yass’ trading firm, Susquehanna International Group, is also the largest institutional shareholder — 2% — of Digital World Acquisition Corporation, which merged with Trump Media & Technology Group, the parent company of the former president’s Truth Social app, and took it public in late March. (The New York Times reported that it’s unclear if Susquehanna still owned the shares at the time of the IPO.)
Given Yass’ support of Trump, it’s not shocking that, after attempting to ban TikTok during his time in office, Trump has said on social media and in interviews that though he still considers TikTok a national security risk, he has reconsidered banning the platform. One reason he has cited is that such a move would benefit Meta and its social media app Facebook. Trump has made no secret of his enmity for Meta’s chairman/CEO Mark Zuckerberg and Facebook, which banned him in 2021. (Trump was reinstated in 2023.)
The Taylor Factor
The news last week that Taylor Swift had restored her Taylor’s Version songs to TikTok in the run-up to the April 19 release of her new album The Tortured Poets Department led to speculation that the superstar singer-songwriter — who has often spoken out for artists’ rights — could be weaponized by TikTok in its standoff with UMG. In Washington, however, TikTok Coalition leader Lane says, “Taylor Swift being or not being on TikTok has never come up in any meeting I’ve been in on Capitol Hill.” He sees Swift’s return to the app as “a business decision” that’s no different than President Biden’s and Congress members’ presence on the app, or even UMG’s continued talks with TikTok. “It doesn’t diminish the strong bipartisan/bicameral support within Congress and the White House that TikTok is a clear and present danger to the U.S. national security and needs to be divested from ByteDance,” he says.
Trump’s sway over the GOP has some on Capitol Hill predicting that passage of the TikTok National Security bill in concert with the foreign aid package is not a slam dunk. “It’s hard to say how it’s going to play on the Republican side,” says the music industry source familiar with the Capitol Hill proceedings. “Because while they’re feeling pressure from the former President on one hand to oppose the bill, they are also feeling heat from their constituents to support it.”
Former Treasury Secretary Steven Mnuchin said Thursday that he will put together an investor group to buy TikTok after the House passed a bill that would ban the popular video app in the U.S. if its China-based owner does not sell its stake.
During an interview on CNBC’s “Squawk Box,” Mnuchin, who served under President Donald Trump, said he had spoken “to a bunch of people” about creating an investor group that would purchase the popular social media company. He offered no details about who may be in the group or about TikTok’s possible valuation.
“This should be owned by U.S. businesses,” Mnuchin said. “There’s no way that the Chinese would ever let a U.S. company own something like this in China.”
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TikTok did not immediately respond to a request for comment.
The House bill, passed by a vote of 352-65, now goes to the Senate, where its prospects are unclear. Lawmakers in the Senate have indicated that the measure will undergo a thorough review. If it passes in the Senate, President Joe Biden has said he will sign it.
House lawmakers acted on concerns that TikTok’s current ownership structure is a national security threat. Lawmakers from both parties and administration officials have voiced concerns that TikTok’s parent company, ByteDance, could be compelled by Chinese authorities to hand over data on American users, spread pro-Beijing propaganda or suppress topics unfavorable to the Chinese government.
TikTok, for its part, has long denied that it could be used as a tool of Chinese authorities. The company insists it has never shared U.S. user data with the Chinese government and will not do so if asked. To date, the U.S. government also has not provided evidence that shows TikTok shared such information with authorities in China.
The White House had no immediate reaction Thursday to Mnuchin’s potential bid for TikTok.
“We’re still focused on continuing to work, providing some technical support and assistance to Congress, as this bill, which just passed the House, moves on to the Senate,” White House national security spokesman John Kirby said when asked about whether the Mnuchin consortium could assuage the administration’s national security concerns about TikTok.
“There is an ongoing legislative process for that. We obviously want to see the Senate take it up swiftly and we’re focused on making sure we’re providing them the context and information we believe is important so that this bill can actually do and address the national security concerns that we have with respect to TikTok.”
The fight over the platform takes place as U.S.-China relations have shifted into strategic rivalry, especially in areas such as advanced technology and data security, seen as essential to each country’s economic prowess and national security.
If passed and signed into law, the House bill would give ByteDance 180 days to sell the platform to a buyer that satisfies the U.S. government. It would also require the company to give up control of the TikTok algorithm that feeds users videos based off their preferences.
In addition to Mnuchin, some other investors, including “Shark Tank” star Kevin O’Leary, have voiced interest in buying TikTok’s U.S. business. But experts have said it could be challenging for ByteDance to sell the platform to a buyer who could afford it in a few months.
Big tech companies are best positioned to make such a purchase, but they would likely face intense scrutiny from antitrust regulators, which Mnuchin emphasized.
“I don’t think this should be controlled by any of the big U.S. tech companies. I think there could be antitrust issues on that,” he said during the interview. “This should be something that’s independent so we have a real competitor. And users love it, so it shouldn’t be shut down.”
He also said the app would need to be rebuilt in the U.S. with new technology.
In many ways, social media companies have become battlegrounds for partisan disagreements about how to control disinformation while protecting free speech. Mnuchin’s effort to buy TikTok comes as Trump and his allies have long complained about what they see as social media muzzling conservative voices.
Trump himself has voiced opposition to the House bill, saying that a ban on TikTok would help its rival, Facebook, which he continues to lambast over his 2020 election loss. Some other Republicans who oppose the bill say the U.S. should simply tell Americans about the security concerns with TikTok, but let them decide if they want to use the platform.
Meanwhile, some Democrats have expressed concern about singling out one company when other social media platforms also collect vast amounts of data on users. Opponents of the bill also say it would disrupt the lives of content creators who rely on the platform for income and run afoul of the First Amendment, which protects free speech.
This isn’t the first time a TikTok sale has been in play.
When Mnuchin was Treasury secretary, the Trump administration brokered a deal in 2020 that would have had U.S. corporations Oracle and Walmart take a large stake in TikTok on national security grounds.
The deal would have also made Oracle responsible for hosting all TikTok’s U.S. user data and securing computer systems to ensure national security requirements are satisfied. Microsoft also made a failed bid for TikTok that its CEO, Satya Nadella, later described as the “strangest thing” he had ever worked on.
Instead of congressional action, the 2020 arrangement was in response to a series of executive actions by Trump targeting TikTok.
But the sale never went through for a number of reasons. Trump’s executive orders got held up in court as the 2020 presidential election loomed. China also imposed stricter export controls on its technology providers.
The House on Wednesday passed a bill that would lead to a nationwide ban of the popular video app TikTok if its China-based owner doesn’t sell, as lawmakers acted on concerns that the company’s current ownership structure is a national security threat.
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The bill, passed by a vote of 352-65, now goes to the Senate, where its prospects are unclear.
TikTok, which has more than 150 million American users, is a wholly owned subsidiary of Chinese technology firm ByteDance Ltd.
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The lawmakers contend that ByteDance is beholden to the Chinese government, which could demand access to the data of TikTok’s consumers in the U.S. any time it wants. The worry stems from a set of Chinese national security laws that compel organizations to assist with intelligence gathering.
“We have given TikTok a clear choice,” said Rep. Cathy McMorris Rodgers, R-Wash. “Separate from your parent company ByteDance, which is beholden to the CCP (the Chinese Communist Party), and remain operational in the United States, or side with the CCP and face the consequences. The choice is TikTok’s.
House passage of the bill is only the first step. The Senate would also need to pass the measure for it to become law, and lawmakers in that chamber indicated it would undergo a thorough review. Senate Majority Leader Chuck Schumer, D-N.Y., said he’ll have to consult with relevant committee chairs to determine the bill’s path.
President Joe Biden has said if Congress passes the measure, he will sign it.
The House vote is poised to open a new front in the long-running feud between lawmakers and the tech industry. Members of Congress have long been critical of tech platforms and their expansive influence, often clashing with executives over industry practices. But by targeting TikTok, lawmakers are singling out a platform popular with millions of people, many of whom skew younger, just months before an election.
Opposition to the bill was also bipartisan. Some Republicans said the U.S. should warn consumers if there are data privacy and propaganda concerns, while some Democrats voiced concerns about the impact a ban would have on its millions of users in the U.S., many of which are entrepreneurs and business owners.
“The answer to authoritarianism is not more authoritarianism,” said Rep. Tom McClintock, R-Calif. “The answer to CCP-style propaganda is not CCP-style oppression. Let us slow down before we blunder down this very steep and slippery slope.”
Ahead of the House vote, a top national security official in the Biden administration held a closed-door briefing Tuesday with lawmakers to discuss TikTok and the national security implications. Lawmakers are balancing those security concerns against a desire not to limit free speech online.
“What we’ve tried to do here is be very thoughtful and deliberate about the need to force a divestiture of TikTok without granting any authority to the executive branch to regulate content or go after any American company,” said Rep. Mike Gallagher, the bill’s author, as he emerged from the briefing.
TikTok has long denied that it could be used as a tool of the Chinese government. The company has said it has never shared U.S. user data with Chinese authorities and won’t do so if it is asked. To date, the U.S. government also has not provided any evidence that shows TikTok shared such information with Chinese authorities. The platform has about 170 million users in the U.S.
The security briefing seemed to change few minds, instead solidifying the views of both sides.
“We have a national security obligation to prevent America’s most strategic adversary from being so involved in our lives,” said Rep. Nick LaLota, R-N.Y.
But Rep. Robert Garcia, D-Calif., said no information has been shared with him that convinces him TikTok is a national security threat. “My opinion, leaving that briefing, has not changed at all,” he said.
“This idea that we’re going to ban, essentially, entrepreneurs, small business owners, the main way how young people actually communicate with each other is to me insane,” Garcia said.
“Not a single thing that we heard in today’s classified briefing was unique to TikTok. It was things that happen on every single social media platform,” said Rep. Sara Jacobs, D-Calif.
Republican leaders have moved quickly to bring up the bill after its introduction last week. A House committee approved the legislation unanimously, on a 50-vote, even after their offices were inundated with calls from TikTok users demanding they drop the effort. Some offices even shut off their phones because of the onslaught.
Lawmakers in both parties are anxious to confront China on a range of issues. The House formed a special committee to focus on China-related issues. And Schumer directed committee chairs to begin working with Republicans on a bipartisan China competition bill.
Senators are expressing an openness to the bill but suggested they don’t want to rush ahead.
“It is not for me a redeeming quality that you’re moving very fast in technology because the history shows you make a lot of mistakes,” said Sen. Ron Wyden, D-Ore.
In pushing ahead with the legislation, House Republicans are also creating rare daylight between themselves and former President Donald Trump as he seeks another term in the White House.
Trump has voiced opposition to the effort. He said Monday that he still believes TikTok poses a national security risk but is opposed to banning the hugely popular app because doing so would help its rival, Facebook, which he continues to lambast over his 2020 election loss.
As president, Trump attempted to ban TikTok through an executive order that called “the spread in the United States of mobile applications developed and owned by companies in the People’s Republic of China (China)” a threat to “the national security, foreign policy and economy of the United States.” The courts, however, blocked the action after TikTok sued, arguing such actions would violate free speech and due process rights.
ByteDance will shut down its music streaming service Resso in India at the end of January, Billboard has confirmed with a ByteDance representative.
The decision, which was first reported by India-based outlet Moneycontrol, was made after Resso was removed from the Google Play and the Apple App stores in December on the orders of the Indian government. Billboard had not been able to determine the reason behind those removals at press time.
Notably, India was Resso’s last remaining market after the app was previously shuttered in Brazil and Indonesia.
“Unfortunately, owing to local market conditions, we can no longer continue to serve users of Resso in India,” said a ByteDance spokesperson in a statement sent to Billboard. “We have therefore taken the decision to shut down Resso and its associated operations on January 31st. Users will be offered a refund of their remaining subscription fees.”
Another factor working against Resso in India — where streaming competitors include such widely-used platforms as Spotify, Gaana, JioSaavn and Wynk — was Sony Music’s removal of its catalog from the service in September 2022.
ByteDance, the Chinese-owned company behind TikTok, first launched Resso in India and Indonesia in March 2020, offering both free and paid tiers, before introducing it in Brazil later that year. In May 2023, ByteDance ended the free tier, making Resso a premium-only service.
In July, ByteDance announced it would roll out its new social music streaming service, TikTok Music, in Brazil and Indonesia, leading to the shutdown of Resso in both markets. Just two weeks later, TikTok Music was launched in closed beta in three additional countries: Mexico, Australia and Singapore, followed by a public launch in those markets in October.
ByteDance confirmed with Billboard that it has no plans to launch TikTok Music in India, where the government banned TikTok in June 2020, along with 58 other Chinese-owned apps, citing data privacy concerns. Those bans were made permanent in January 2021.
Shortly after its initial official launch, TikTok Music is already in expansion mode.
The new app, which is a full-catalog subscription music streaming service that ties into a user’s TikTok account, is launching in three additional countries: Mexico, Australia and Singapore, the company announced today (July 18). The announcement comes just two weeks after the company announced the creation of TikTok Music, with its initial availability limited to Brazil and Indonesia.
The launch in the three new countries will initially be in closed beta, with users being invited to try the service with a three-month trial after downloading the app.
“TikTok Music is a new kind of music service that combines the power of music discovery on TikTok with a music streaming service offering millions of tracks from thousands of artists,” a TikTok spokesperson said in a statement. “We are now beta testing TikTok Music in Australia, Mexico [and] Singapore, and will have more news to share on the launch of TikTok Music in the coming months.”
TikTok Music grew out of, and is replacing, TikTok’s initial foray into music streaming, which it called Resso and which had been operating in India and Indonesia since March 2020, before later expanding into Brazil. That service was initially a free, ad-supported streamer before TikTok’s parent company, ByteDance, announced in May that it would become subscription-only. Resso’s availability in Indonesia and Brazil is sunsetting on Sept. 5.
The announcement caps a big day for TikTok, which also unveiled a major new licensing partnership with Warner Music Group (WMG) allowing the company’s music to be used on the main app as well as in its commercial library, among other uses, while giving WMG artists greater access to some of TikTok’s tools to reach fans and sell merchandise. TikTok also announced the launch of a new emerging artist program called Elevate to promote artists both on and off the app.
TikTok Music is a significant step in the relationship between the wildly-popular social media app and the music business, which has been contested in recent years but has since begun to thaw with an increased partnership between the sides. Sony, which had pulled its catalog from Resso in recent months, struck a deal to return its catalog to both Resso and TikTok Music, for example. TikTok has also been rolling out tools to help creators, and additionally to help users find artists on the platform. The expansion of its streaming service could be a huge change in the digital service provider landscape, which hasn’t seen a new major player emerge in several years at this point — particularly one with as massive and engaged a user base as TikTok.
TikTok is launching a new “social music streaming service” in Indonesia and Brazil, the company announced Thursday (July 6).
TikTok Music is a premium-only service that users will be able to synch with their existing TikTok accounts in order to listen to, share and download the tracks they discover on TikTok. The service is available starting now in both countries; all new TikTok Music users will be offered a one-month free trial.
TikTok Music will launch with a “full catalogue of music from thousands of labels and artists,” according to a press release. That includes Sony Music, whose catalog hasn’t been available on TikTok’s existing streaming service, Resso, since September. The release adds that Sony’s catalog will become available on Resso again beginning Thursday.
Following Thursday’s launch, Resso — which launched in March 2020 in India and Indonesia before later being made available in Brazil — will cease operating in both Indonesia and Brazil on Sept. 5. Existing Resso users will be invited to transfer their accounts to TikTok Music “with the click of a button,” the release states.
TikTok’s pivot to a subscription-based streamer began in May, when its Chinese parent company, ByteDance, announced that Resso would become a premium-only service.
Among other features, TikTok Music subscribers will have the ability to swipe up and down on the app to explore personalized music recommendations; connect with “like-minded” music fans; sing along to real-time lyrics; co-create collaborative playlists with friends; import their music libraries from external playlists; and search for lyrics to discover songs, according to the press release. The service will include uninterrupted ad-free listening and a download function allowing users to listen to music offline.
“We are pleased to introduce TikTok Music, a new kind of service that combines the power of music discovery on TikTok with a best-in-class streaming service. TikTok Music will make it easy for people in Indonesia and Brazil to save, download and share their favourite viral tracks from TikTok,” said Ole Obermann, global head of music business development at TikTok, in a statement. “We are excited about the opportunities TikTok Music presents for both music fans and artists, and the great potential it has for driving significant value to the music industry.”
For more than a year, ByteDance has been signaling its intention to launch a music streaming service that would compete with Spotify, Apple Music, Amazon Music and YouTube. In spring 2022, the company registered the handles @TikTokMusic on both Twitter and Instagram; that May, it also filed a trademark application with the U.S. Patent and Trademark Office for a service under the same name. In October, Billboard confirmed that ByteDance was in conversations with all major music rights holders to launch its music streaming service in additional countries in Latin America, Southeast Asia, Australia and New Zealand.
The launch of TikTok Music is a potential game-changer for the music industry, as rights holders have pressured the company to embrace a subscription model over an ad-supported one. Streaming subscriptions are a primary driver of music industry revenue, with paid subscription streaming revenue surpassing $10 billion in the United States for the first time last year, according to the RIAA. It accounts for 77% of all streaming revenue and nearly two-thirds of total revenue.
TikTok’s parent company ByteDance launched its own music creation tool called Ripple on Friday (June 30th) for a small group of beta testers in the U.S.
Ripple offers audio recording and editing capabilities as well as a “melody to song” function, which allows users to hum a melody and spits out an instrumental version of it in an assortment of genres. TikTokers could use it to create sounds for their videos.
The beta launch of Ripple makes sense at a time when the music industry is increasingly cognizant of the fact that young listeners are no longer content to sit back and just listen to someone else’s song — they want to add their own twist, or even make one themselves. Ole Obermann, TikTok’s global head of music, told a conference earlier this year that listeners “want to put their fingerprints on the song.”
This is becoming a common sentiment: Surveys show “how much Gen Z wants to actively participate in music,” Tatiana Cirisano, music industry analyst and consultant at Midia Research, told Billboard last year. In March, John Fleckenstein, COO of RCA Records, told Billboard that “Gen Z has an expectation, because they’ve grown up as digital natives, that if you do something, they can iterate or comment on it. That doesn’t end in the comments section of a social media post: It’s now bleeding into the art itself.”
One of the companies that has had a lot of success by making it easy for the masses to make music music is BandLab, a free app which had more than 60 million registered creators pumping out more than 16 million songs a month at the start of the year. Meng Ru Kuok, the company’s CEO, is fond of saying “we think everyone is a creator, including fans.”
Right now, millions of aspiring creators use BandLab or GarageBand or another program to make or manipulate audio, which they might then upload to TikTok as an original sound. But if Ripple becomes popular, TikTok’s massive user-base could produce soundtracks for their videos without ever leaving a ByteDance app.
And ByteDance has already launched another popular app that meshes well with TikTok: CapCut. CapCut “makes it a lot easier for your everyday user to be able to create more polished videos,” Jen Darmafall, director of marketing at ATG Group, told Billboard earlier this year. “You don’t have to have a particular skill set when it comes to editing — there are templates on the platform for you to go and plug in what you want, whether it’s photos or videos or text overlays or transitions. That’s helped it skyrocket.”
A former executive at ByteDance, the Chinese company which owns the popular short-video app TikTok, says in a legal filing that some members of the ruling Communist Party used data held by the company to identify and locate protesters in Hong Kong.
Yintao Yu, formerly head of engineering for ByteDance in the U.S., says those same people had access to U.S. user data, an accusation that the company denies.
Yu, who worked for the company in 2018, made the allegations in a recent filing for a wrongful dismissal case filed in May in the San Francisco Superior Court. In the documents submitted to the court he said ByteDance had a “superuser” credential — also known as a god credential — that enabled a special committee of Chinese Communist Party members stationed at the company to view all data collected by ByteDance including those of U.S. users.
The credential acted as a “backdoor to any barrier ByteDance had supposedly installed to protect data from the C.C.P’s surveillance,” the filing says.
ByteDance said in a statement that Yu’s accusations were “baseless.”
“It’s curious that Mr. Yu has never raised these allegations in the five years since his employment for Flipagram was terminated in July 2018,” the company said, referring to an app that ByteDance later shut down for business reasons. “His actions are clearly intended to garner media attention.
“We plan to vigorously oppose what we believe are baseless claims and allegations in this complaint,” ByteDance said.
Charles Jung, Yu’s lawyer and a partner at the law firm Nassiri & Jung, said Yu chose to raise the allegations because he was “disturbed to hear the recent Congressional testimony of TikTok’s CEO” when Shou Zi Chew, a Singaporean, vehemently denied Chinese authorities had access to user data.
“Telling the truth openly in court is risky, but social change requires the courage to tell the truth,” Jung said. “It’s important to him that public policy be based on accurate information, so he’s determined to tell his story.”
TikTok is under intense scrutiny in the U.S. and worldwide over how it handles data and whether it poses a national security risk. Some American lawmakers have expressed concern that TikTok’s ties to ByteDance means the data it holds is subject to Chinese law.
They also contend that the app, which has over 150 million monthly active users in the U.S. and more than a billion users worldwide, could be used to expand China’s influence.
During the combative March House hearing, lawmakers from both parties grilled Chew over his company’s alleged ties to Beijing, data security and harmful content on the app. Chew repeatedly denied TikTok shares user data or has any ties with Chinese authorities.
To allay such concerns, TikTok has said that it would work with Oracle to store all U.S. data within the country.
In an earlier court filing, Yu accused ByteDance of serving as a “propaganda tool” for the Chinese Communist Party by promoting nationalistic content and demoting content that does not serve the party’s aims. He also said that ByteDance was responsive to the Communist Party’s requests to share information.
Yu also accused ByteDance of scraping content from competitors and users to repost on its sites to exaggerate key engagement metrics. He says he was fired for sharing his concerns about “wrongful conduct” he saw with others in the company.
In mainland China, ByteDance operates Douyin, which is targeted at the domestic market. TikTok is its global app that is available in most other countries. It was also available in Hong Kong until TikTok pulled out of the market in 2020 following the imposition of a sweeping national security law.
Anyone who tries to open TikTok from within Hong Kong will see a message that reads “We regret to inform you that we have discontinued operating TikTok in Hong Kong.”
