News Analysis
The Gist
- Limited authority. TikTok CEO Shou Chew struggled to address critical concerns during the Congressional hearing, revealing his limited decision-making power.
- Ban possibility. Chew's testimony may increase the likelihood of a TikTok ban in the US, impacting social media competitors like Facebook and YouTube.
- Uncertain future. Despite ongoing scrutiny, TikTok continues to grow in popularity and influence, facing an uncertain future with potential regulatory challenges.
TikTok CEO Shou Chew had one mission as he appeared before Congress Thursday: Convince US lawmakers that TikTok had some separation from its China-based parent company, Bytedance.
He was there because worries over China’s ability to access TikTok user data, or influence its content filtering, had US lawmakers, regulators and the White House considering a ban or forced sale. Sound testimony from Chew could’ve cooled the situation. Instead, he inflamed it.
From the hearing’s first minutes, Chew made clear his power at the helm of TikTok is limited. He could not say definitively that TikTok wouldn’t promote messages supporting Chinese hostilities toward Taiwan. He could not commit that TikTok wouldn’t sell its data. He couldn’t even clearly answer questions about who helped him prepare for the hearing.
TikTok CEO's Struggles Raise Doubts and Fuel Ban Speculation
To those watching, Chew came off as someone struggling to discuss issues above his pay grade. Even as TikTok’s CEO, he didn’t seem like the boss.
“He doesn’t run it,” Geoffrey Cain, a senior fellow at the Lincoln Network who briefed the committee, told me via DM. “I don’t think he’s fit for these hearings. There’s a reason they didn’t roll him out until now.”
With TikTok’s lack of independence now even clearer in lawmakers’ heads, support to ban it in the US will likely grow — as will speculation about what the move will mean for Facebook, YouTube and others — but there’s a long road ahead until anything moves forward.
The hearings took place as the US Committee on Foreign Investment (CFIUS) reviews TikTok’s ability to operate in the country following its 2017 acquisition of Musical.ly. That review has been underway for years though. And while Chew’s performance might help the US win more assurances from TikTok around data security, those assurances may not mean much anymore.
Related Article: How TikTok Is Changing the Digital Marketing Game
Learning Opportunities
Webinar
May
30
ChatGPT and the Future of Conversational AI
This discussion explores various aspects of AI implementation, ethical considerations, and challenges for your organization.
Webinar
May
31
The Evolution of Employee Listening - 2023 Trends & Best Practices
Learn proven effective methods and solutions to supporting an inspirational future of Employee Voice
Webinar
Jun
1
How organizations can design, build and run Generative AI into the Customer Experience
Discover how to drive enhanced CX through Generative AI
Webinar
Jun
6
The Future of Social Media: Emerging Trends and How to Stay Ahead of the Curve
The impact of emerging technologies like AI on social media
Webinar
Jun
7
The Building Blocks of Personalization
This webinar will explore how personalization can create powerful ecommerce shopping experience.
Webinar
Jun
13
The Future of Contact Centers with AI at the Helm
Learn how to balance human intuition and interaction with the potential uses of AI to create delightful and lasting CX
Webinar
May
30
ChatGPT and the Future of Conversational AI
This discussion explores various aspects of AI implementation, ethical considerations, and challenges for your organization.
Webinar
May
31
The Evolution of Employee Listening - 2023 Trends & Best Practices
Learn proven effective methods and solutions to supporting an inspirational future of Employee Voice
Congress Working on Backup Plans to Ban Technology From China
The U.S. Congress is already working on backup plans in case it doesn’t get what it wants from CFIUS. A bill called The Restrict Act that’s making its way through Congress would empower the Commerce Department to ban technology from China, including TikTok. But given that 150 million Americans use TikTok, an outright ban would be politically tricky (though perhaps not impossible).
Getting Bytedance to divest TikTok is one remaining option. “The solution is the forced sale,” said Cain. But that option’s also challenging. Public investors own 60% of TikTok, employees own 20%, and its founders own the remaining 20%, according to the company. A forced sale would be difficult for a company with that structure to complete. The Chinese government’s intent to fight such a sale would further complicate matters. So, it might take an extreme event to push anything into action.
Related Article: Is It the 11th Hour for TikTok?
TikTok's Fate Tied to Flailing US-China Relations
And indeed, that this is all happening without any proof that TikTok is actually doing the things it might do is remarkable. It speaks to the flailing nature of the U.S.-China relationship, one that seems to be worsening as China’s stood by Russia amid its invasion of Ukraine.
A similar pursuit of Taiwan by China would assuredly hasten any action the US is contemplating against TikTok. But until then, the app will most likely continue on, gaining users and influence, marching toward an uncertain future with a figurehead at the helm.
