TikTok Ban Results in Oracle Deal After Security Concerns

TikTok is a fast-growing, video-based social media service that has undergone intense scrutiny for being owned by a Beijing-based company called ByteDance. These concerns revolve around both their relationship to China and their access to our data. Though it ranks among the most popular apps in the world, India was one of the first countries to ban it along with other Chinese apps. In addition, various companies, notably including Wells Fargo, have made it a policy to forbid employees from using TikTok.

However, the conversation escalated on September 15, 2020, when President Trump framed TikTok as a threat to security. He gave China a 45-day ultimatum to sell the app to an American company or suffer the traffic loss that would occur by effectively banning the app in the United States.

On September 19, 2020, TikTok users around the country received a notification informing them that TikTok, though still up and running, would no longer be available in the App store. Some people laud the decision, claiming that TikTok is a danger to Americans. On the other hand, many deride the decision, claiming that banning apps is a dangerous precedent to set. Other users simply resent that they are losing an app that gives them joy during a pandemic.

Why TikTok? What’s the Deal?

The controversy surrounding TikTok is largely associated with President Trump. However, the first concerns about the app’s ties to China predate the President’s statements. Indeed, the concerns started with an investigation run by the Peterson Institute for International Economics. This report stated that the U.S. had been ignoring clear risks to our security. They cite that the biometric data, images, and locations the app mines could theoretically be shared with the Chinese government. The report claims that TikTok essentially can be leveraged as a Chinese surveillance software to extract Western military intelligence.

TikTok’s parent company, ByteDance, released a statement on October 24, 2019, saying that “Our data centers are located entirely outside of China, and none of our data is subject to Chinese law”. However, TikTok’s privacy policy previously had a statement warning users that they could plausibly share information with Chinese authorities if they are legally required to do so. This is a precedent that has already been set within America. Quartz published a report for the U.S. law enforcement data requests to various apps and the success rates from January 2015 to June 2015. Of the 17,577 requests for user data, Facebook complied with 80% of requests. Of the 12,002 requests for user data, Google complied with 78%.

As a result of these concerns, in October 2019, Marco Rubio asked that the Committee on Foreign Investments in the United States (CFIUS) investigate TikTok. In July of 2020, the United States Department of Treasury admitted CFIUS launched an investigation into TikTok. This came very quickly after Mike Pompeo announced the proposed “ban on TikTok“.

Is TikTok a Cybersecurity Risk?

TikTok, like any social media site, has had a problematic past regarding user data. In 2019, TikTok had to settle out of court with the Federal Trade Commission (FTC) due to accusations that they were collecting user information from kids under the age of 13. Another report from last month showed that TikTok was accessing user clipboards to save what people copy and paste. ByteDance claims this was a now defunct anti-spam measure.

These are valid concerns, though many argue that the security sins of TikTok are not worse than other apps like Facebook and Instagram. But this does not dispel security concerns, it only raises additional concerns about social media data privacy across the board. In its privacy policy, TikTok claims that it collects usage info, IP addresses, user’s mobile network carrier, unique device identifiers, keystroke patterns, location, and “other data”.

Is TikTok Giving Our Data to the Chinese Government?

There is no explicit proof that TikTok is a Chinese surveillance tool. However, there is proof that the app gathers more data than the average user would be comfortable with. In fact, TikTok likely gives larger data sets than most social media sites. This is due to the visual nature of the app. The entire premise of TikTok is taking videos of yourself, often lip-syncing a song. By actively using the app, you are divulging your likes, dislikes, consumer habits, locations, and patterns of life.

The Executive Order on Addressing the Threat Posed by TikTok addresses the mining of these data points, stating that the data collection processes may potentially allow “…China to track the locations of Federal employees and contractors, build dossiers of personal information for blackmail, and conduct corporate espionage.”

Other issues that TikTok users are vulnerable to include addiction, misinformation campaigns, and cyberbullying. Many users are additionally young and vulnerable to the dangers that face kids on social media apps.

The Fate of TikTok

TikTok is currently in the hands of Oracle and Walmart. They are splitting 20% of shares to take over U.S. operations. The specific details of the plan, how it will affect the data, the users, and TikTok’s relationship with China, are not public at the time of this writing. However, the expectation is that the deal will satisfy users while simultaneously addressing and satiating American security concerns. As of now, TikTok is currently available on all phones that have previously downloaded it. However, it is not available on the app store and users cannot update it. This will undoubtedly cause problems down the road; if there is a security exploit, TikTok will not be able to offer a patch upgrade.

No one is sure exactly how this scenario will play out on the national stage. But it is important to remember that whether on TikTok, or any social media site, your data is being monetized. It is important to take proper precautions to not divulge certain information while on these apps. Limit time usage, and don’t assume that you have any true data security or privacy. It’s wise to err on the cautious side with any social media. Though TikTok carries the political implications between the United States and China, making the social media app more complex than others, the choice of what to divulge on these apps still carries a lot of weight.

Update

9/28/20: On Sunday, September 27th, 2020, a federal judge blocked President Trump’s proposed TikTok ban, temporarily allowing users to download the app. During an emergency hearing, lawyers argued that the ban on TikTok constitutes an infringement on First Amendment rights.

The fate of said app and the deal surrounding it is still pending. ByteDance, Oracle, and Walmart still must finalize their ownership structure. Until a specific deal is squared away, TikTok will continue to operate as normal. A full court hearing will occur, though there is no set date for the case.

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Should you intend to create or to join any service, receive or request any such news, messages, alerts or other information from our Services concerning companies, stock quotes, investments or securities, please review the above Sections Warranty Disclaimers and Limitations of Liability again. In addition, for this particular type of information, the phrase “Let the investor beware” is appropriate. American Publishing, LLC’s content is provided primarily for informational purposes, and no content that shall be provided or included in our Services is intended for trading or investing purposes. American Publishing, LLC and our licensors shall not be responsible or liable for the accuracy, usefulness or availability of any information transmitted and/or made available by way of our Services, and shall not be responsible or liable for any trading and/or investment decisions based on any such information.

EXCLUSION AND LIMITATIONS
THERE ARE SOME JURISDICTIONS WHICH DO NOT ALLOW THE EXCLUSION OF CERTAIN WARRANTIES OR THE LIMITATION OF EXCLUSION OF LAIBILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES. THEREFORE, SOME OF THE ABOVE LIMITATIONS OF SECTIONS WARRANTY DISCLAIMERS AND LIMITATION OF LIABILITY MAY NOT APPLY TO YOU.

THIRD PARTY BENEFICIARIES
You herein acknowledge, understand and agree, unless otherwise expressly provided in this TOS, that there shall be third-party beneficiaries to this agreement.

NOTICE
American Publishing, LLC may furnish you with notices, including those with regards to any changes to the TOS, including but not limited to email, regular mail, MMS or SMS, text messaging, postings on our website Services, or other reasonable means currently known or any which may be herein after developed. Any such notices may not be received if you violate any aspects of the TOS by accessing our Services in an unauthorized manner. Your acceptance of this TOS constitutes your agreement that you are deemed to have received any and all notices that would have been delivered had you accessed our Services in an authorized manner.

TRADEMARK INFORMATION
You herein acknowledge, understand and agree that all of the American Publishing, LLC trademarks, copyright, trade name, service marks, and other American Publishing, LLC logos and any brand features, and/or product and service names are trademarks and as such, are and shall remain the property of American Publishing, LLC. You herein agree not to display and/or use in any manner the American Publishing, LLC logo or marks.

COPYRIGHT OR INTELLECTUAL PROPERTY INFRINGEMENT CLAIMS NOTICE
& PROCEDURES
American Publishing, LLC will always respect the intellectual property of others, and we ask that all of our users to the same. With regards to appropriate circumstances and at its sole discretion, American Publishing, LLC may disable and/or terminate the accounts of any user who repeatedly violates our TOS and/or infringes the rights of others. If you feel that your work has been duplicated in such a way that would constitute copyright infringement, or if you believe your intellectual property rights have been otherwise violated, you should provide to us the following information:
a) The electronic or the physical signature of the individual that is authorized on behalf of the owner of the copyright or other intellectual property interest;
b) A description of the copyrighted work or other intellectual property that you believe has been
infringed upon;
c) A description of the location of the site which you allege has been infringing upon your work;
d) The physical address, telephone number, and email address;
e) A statement, in which you state that the alleged and disputed use of your work is not authorized by the copyright owner, its agents or the law;
f) And finally, a statement, made under penalty of perjury, that the aforementioned information in your notice is the truth and accurate, and that you are the copyright or intellectual property owner, representative or agent authorized to act on the copyright or intellectual property owner’s behalf. The American Publishing, LLC Agent for notice of claims of copyright or other intellectual property infringement can be contacted as follows:
Mailing Address:
American Publishing, LLC
Attn: Copyright Agent
17 Hoff Court, Suite B
Baltimore, Maryland 21221
Telephone: 443.231.7438
Fax: 410.238.2835
Email: karen.austin@uscybersecurity.net
CLOSED CAPTIONING
BE IT KNOWN, that American Publishing, LLC complies with all applicable Federal Communications Commission rules and regulations regarding the closed captioning of video content. For more information, please visit our website at www.uscybersecurity.net.

GENERAL INFORMATION
ENTIRE AGREEMENT
This TOS constitutes the entire agreement between you and American Publishing, LLC and shall govern the use of our Services, superseding any prior version of this TOS between you and us with respect to American Publishing, LLC Services. You may also be subject to additional terms and conditions that may apply when you use or purchase certain other American Publishing, LLC Services, affiliate Services, third-party content or third-party software.

CHOICE OF LAW AND FORUM
It is at the mutual agreement of both you and American Publishing, LLC with regard to the TOS that the relationship between the parties shall be governed by the laws of the state of Maryland without regard to its conflict of law provisions and that any and all claims, causes of action and/or disputes, arising out of or relating to the TOS, or the relationship between you and American Publishing, LLC, shall be filed within the courts having jurisdiction within the County of Baltimore, Maryland or the U.S. District Court located in said state. You and American Publishing, LLC agree to submit to the jurisdiction of the courts as previously mentioned, and agree to waive any and all objections to the exercise of jurisdiction over the parties by such courts and to venue in such courts.

WAIVER AND SEVERABILITY OF TERMS
At any time, should American Publishing, LLC fail to exercise or enforce any right or provision of the TOS, such failure shall not constitute a waiver of such right or provision. If any provision of this TOS is found by a court of competent jurisdiction to be invalid, the parties nevertheless agree that the court should endeavor to give effect to the parties’ intentions as reflected in the provision, and the other provisions of the TOS remain in full force and effect.

NO RIGHT OF SURVIVORSHIP NON-TRANSFERABILITY
You acknowledge, understand and agree that your account is non-transferable and any rights to your ID and/or contents within your account shall terminate upon your death. Upon receipt of a copy of a death certificate, your account may be terminated and all contents therein permanently deleted.

STATUTE OF LIMITATIONS
You acknowledge, understand and agree that regardless of any statute or law to the contrary, any claim or action arising out of or related to the use of our Services or the TOS must be filed within year(s) after said claim or cause of action arose or shall be forever barred.

VIOLATIONS
Please report any and all violations of this TOS to American Publishing, LLC as follows:
Mailing Address:
American Publishing, LLC
Attn: Copyright Agent
17 Hoff Court, Suite B
Baltimore, Maryland 21221
Telephone: 443.231.7438
Fax: 410.238.2835
Email: karen.austin@uscybersecurity.net

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