© Reuters. FILE PHOTO: The TikTok emblem is pictured in Culver Metropolis, California, U.S., September 15, 2020. REUTERS/Mike Blake/File Picture
By David Shepardson and Rami Ayyub
WASHINGTON (Reuters) -U.S. lawmakers on Thursday battered TikTok’s CEO about potential Chinese language affect over the platform and mentioned its quick movies have been damaging kids’s psychological well being, reflecting bipartisan issues concerning the app’s energy over Individuals.
CEO Shou Zi Chew’s testimony earlier than Congress did little to assuage U.S. worries over TikTok’s China-based father or mother firm ByteDance and added recent momentum to lawmakers’ calls to ban the platform nationwide.
Over 5 hours of testimony, Chew repeatedly denied the app shares information or has connections with the Chinese language Communist Social gathering and argued the platform was doing all the things to make sure security for its 150 million American customers.
Chew mentioned TikTok for greater than two years has been “constructing what quantities to a firewall to seal off protected U.S. consumer information from unauthorized international entry. The underside line is that this: American information saved on American soil, by an American firm, overseen by American personnel,” Chew mentioned.
However not a single lawmaker provided help for TikTok, as they deemed Chew’s solutions on China evasive and aired issues over the facility the app holds over U.S. kids.
Others accused TikTok of selling content material that encourages consuming issues amongst kids, unlawful drug gross sales and sexual exploitation.
“TikTok may very well be designed to attenuate the hurt to youngsters, however a call was made to aggressively addict youngsters within the identify of income,” mentioned Consultant Kathy Castor, a Democrat, on the Home of Representatives Power and Commerce committee listening to.
Chew responded to many pointed questions by saying the problems have been “complicated” and never distinctive to TikTok.
The corporate says it has spent greater than $1.5 billion on information safety efforts underneath the identify “Venture Texas” which at present has almost 1,500 full-time workers and is contracted with Oracle Corp (NYSE:) to retailer TikTok’s U.S. consumer information.
However critics weren’t appeased as the corporate did not announce any new efforts to safeguard privateness.
Chew, who started his testimony by referring to his Singaporean roots, mentioned: “We don’t promote or take away content material on the request of the Chinese language authorities.”
He added: “It’s our dedication to this committee and all our customers that we are going to hold (TikTok) free from any manipulation by any authorities.” He mentioned the app strictly screens content material that would hurt kids.
It’s not clear how lawmakers will proceed after the listening to or how shortly they may transfer to move laws to strengthen the Biden administration’s authorized powers to ban TikTok.
‘NOT ABOUT THE OWNERSHIP’
Some 20 U.S. senators – 10 Democrats and 10 Republicans – have backed bipartisan laws giving President Joe Biden’s administration a path to ban TikTok, and the app’s destiny has added a brand new component to tensions between Washington and Beijing.
TikTok final week mentioned the Biden administration demanded its Chinese language homeowners divest their stakes or face a possible ban.
When requested a few potential divestiture, Chew mentioned the difficulty was “not concerning the possession” and argued U.S. issues may very well be addressed by shifting information to its U.S. storage facilities.
China’s commerce ministry mentioned forcing TikTok’s sale “will significantly harm the arrogance of buyers from all around the world, together with China, to put money into america,” and that China would oppose any sale.
Some lawmakers cited China’s feedback to reject TikTok’s rivalry that it’s separate from the Chinese language authorities.
At Thursday’s Home listening to, Consultant Neal Dunn requested Chew if ByteDance has spied on Individuals at Beijing’s request. Chew answered, “No.”
Republican Dunn then requested about U.S. media studies {that a} China-based crew at ByteDance deliberate to make use of TikTok to watch the placement of particular U.S. residents, and repeated his query about whether or not ByteDance was spying.
“I do not assume that spying is the suitable solution to describe it,” Chew mentioned. He went on to explain the studies as involving an “inside investigation,” however was minimize off by Dunn, who known as TikTok’s widespread use “a most cancers.”
Shares of U.S. social media corporations that compete with TikTok for promoting rose on Thursday, with Fb father or mother Meta Platforms Inc (NASDAQ:) closing 2.2% greater and Snap Inc (NYSE:) up 3.1%.
“SNAP and META are up on concept that the CEO did not do effectively and TikTok could also be banned,” mentioned Thomas Hayes, chairman and managing member of Nice Hill Capital. “I believe the rumors of TikTok’s demise could also be significantly exaggerated.”
‘SAVE OUR CHILDREN’
Democratic lawmaker Tony Cardenas mentioned Chew was a “good dancer with phrases” and accused him of avoiding robust questions on proof that the app has harmed kids’s psychological well being.
Chew mentioned the corporate was investing in content material moderation and synthetic intelligence to restrict such content material.
Consultant Diana DeGette, a Democrat, mentioned TikTok’s efforts to forestall the unfold of misinformation on the platform weren’t working.
“You gave me solely generalized statements that you just’re investing, that you just’re involved, that you just’re doing work. That is not sufficient for me. That is not sufficient for the dad and mom of America,” DeGette mentioned.
Consultant Gus Bilirakis confirmed the committee a set of quick TikTok movies that appeared to glorify self-harm and suicide, or outright inform viewers to kill themselves.
“Your expertise is actually resulting in demise,” Bilirakis mentioned. “We should save our kids from massive tech corporations like yours, who proceed to abuse and manipulate them in your personal achieve.”
Chew instructed Bilirakis that TikTok takes the difficulty of suicide and self-harm “very, very significantly.”
TikTok is just not accessible in China, the place ByteDance gives a Chinese language equal Douyin. Nonetheless, the listening to was intently watched within the nation, with associated information posts gathering thousands and thousands of views on microblogging website Weibo (NASDAQ:) the place many customers expressed sympathy for Shou and criticized U.S. “hostility.”
Hu Xijin, a former editor-in-chief of state-run tabloid International Instances, mentioned in a tweet on Thursday: “The U.S. is robbing TikTok this time, however it’s hypocritically going by way of the method of a listening to.”
ByteDance didn’t reply to a request for remark.
