.TikTok_US opens up nearly $1.5B proposal to accommodate US regulators
The Chinese-owned social media giant offered details about a complex $1.5 billion plan that would reorganize the company's U.S. presence, according to the Wall Street Journal. The company has been quiet about its negotiations for months, but growing pressure from state and federal officials on the app is pushing the company to be more open about the details of its plans.
The discussions include creating systems for monitoring TikTok's algorithm, continuing to run all U.S. TikTok traffic through the Oracle server system, and hiring monitors to ensure the China-based parent company ByteDance is not manipulating the app. Several aspects of these plans have been reported in the past, but this is the first time that TikTok has been open about its intentions. The company was reportedly struggling to hire employees for related roles, freezing the hiring process last week.
The app faces multiple bans. State leaders and Congress passed bans on installing the app on government devices. Rep. Mike Gallagher and Sen. Marco Rubio filed a bill in December that would outright ban the app.Lawmakers' concerns arise due to the potential use of U.S. data for Chinese surveillance purposes. ByteDance fired four employees in December for spying on U.S. journalists through the TikTok app, claiming it was a fluke.
Other lawmakers have become concerned about the app's influence after it was revealed that lobbyists representing TikTok had visited the White House multiple times. Sen. Dan Sullivan has called for a"crucial" hearing on the practice to address various issues.
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