Don’t Say Epstein!

Key Concepts

• TikTok USDS Joint Venture LLC: The new corporate entity formed to satisfy US demands for divestment of TikTok’s American operations.
• Algorithmic Nudging: The subtle manipulation of user experience through the recommendation algorithm to influence behavior.
• Data Harvesting: The extensive collection of user data, including biometric information, location data, and keystrokes.
• Shadowbanning: The practice of limiting the visibility of a user’s content without explicitly banning them.
• Push Model (vs. Search Model): TikTok’s algorithm-driven content delivery system, contrasting with traditional search-based internet navigation.
• Rational Business Actor Theory: The idea that TikTok’s new owners will prioritize profit and avoid overtly suppressing political views.

The Transformation of TikTok: From National Security Threat to Politically Connected Asset

The recent transition of TikTok’s US operations to TikTok USDS Joint Venture LLC has been marked by controversy, raising concerns about censorship, data privacy, and political influence. What began as a national security concern regarding Chinese ownership has evolved into a situation where a consortium of politically connected American investors now controls the platform, potentially wielding significant influence over the information consumed by 170 million Americans.

Initial Concerns and the Divestment Deal

In August 2020, the Trump administration labeled TikTok a national security threat, citing concerns that its Chinese ownership (ByteDance) allowed the Chinese Communist Party to access user data for espionage and blackmail. This led to an ultimatum in April 2024: sell US operations or face a nationwide ban. The resulting deal, finalized on January 22nd, established TikTok USDS Joint Venture LLC, but did not represent a complete separation from ByteDance. ByteDance retains a 19.9% ownership stake – the maximum allowed – and continues to manage TikTok’s core revenue streams, including advertising, marketing, and TikTok Shop.

The $14 billion valuation was significantly lower than previous estimates (35-50 billion), and the deal was brokered with the direct approval of Chinese President Xi Jinping, according to CNBC reports. No ByteDance representatives were present at the signing. This bargain price raised questions about the motivations behind the sale.

Early Signs of Change: Censorship and Technical Issues

Immediately following the ownership change, users reported changes in the platform’s behavior. The word “Epstein” was reportedly blocked in direct messages, initially characterized by TikTok as a “technical glitch” but viewed by many as a suspicious coincidence. Reports also surfaced of shadowbanning or failed uploads of videos documenting ICE raids, and the comedian Megan Stalter deleted her account after a post on the topic received no traction on TikTok while performing well on other platforms. Freelance journalist David Levid experienced his political videos being flagged as ineligible for recommendation, resulting in zero views. These incidents led to the trending hashtag “TikTok censorship” and prompted an investigation by California regulators.

The New Ownership Consortium

The new ownership structure consists of Oracle (15% stake), Silver Lake (15% stake), and MGX (backed by Emirati investors). Oracle is responsible for overseeing the recommendation algorithm and content moderation. This places significant power in the hands of Larry Ellison, co-founder of Oracle, and his family, who have increasingly engaged in politically charged media acquisitions. Following a merger between Skydance and Paramount Global, David Ellison (Larry’s son) installed conservative figures at CBS News and secured a $16 million settlement for Donald Trump related to a 60 Minutes interview. The Ellison family is currently pursuing a hostile takeover of Warner Brothers Discovery (CNN).

Data Privacy Concerns: A Shift in Focus

While the initial concern was foreign access to data, the new ownership has not removed the extensive data collection practices previously criticized. Instead, the context has shifted from marketing to “compliance.” TikTok now collects biometric data (facial expressions, pupil dilation) through the camera, precise GPS location data, and information about users’ racial/ethnic origin, religious beliefs, sexual orientation, and immigration status. The new terms of service grant TikTok a broad license to use user content, including drafts and recordings, to train its generative AI models. This represents a significant expansion of data harvesting capabilities.

The Algorithm and the Push Model of Content Delivery

TikTok’s algorithm-driven “push” model, where users are shown content rather than actively searching for it, is a key factor in its potential for influence. Unlike search engines, which only hide information from those actively seeking it, TikTok’s algorithm can subtly shape the “ambient reality” of its users. This “algorithmic nudging” can be difficult to detect, as there is no neutral feed for comparison. The control over this algorithm grants a level of influence that surpasses that of traditional media moguls.

Political Dynamics and the Shifting Narrative

The political narrative surrounding TikTok has undergone a dramatic shift. Donald Trump, who initially threatened to ban the app, now publicly defends it, arguing that a ban would benefit Meta (Facebook). This change coincided with significant political donations from Jeff Yass, a major investor in ByteDance, to Trump-aligned political action committees. Trump himself acknowledged the app’s usefulness in reaching Gen Z voters, amassing over 16 million followers on his personal account.

The role reversal has created confusion in Washington, with Republicans now praising TikTok’s commitment to American values and Democrats expressing concerns about censorship. The initial “technical glitches” and content blocking incidents suggest that the influence over the platform may have simply shifted hands.

Is it Censorship or Technical Issues?

While concerns about censorship are valid, Reason Magazine argues that TikTok’s new owners are rational business actors who would avoid overtly suppressing political views due to the potential for commercial damage. They suggest that the initial issues were likely technical growing pains from migrating data to Oracle servers. However, the history of similar incidents on other platforms (e.g., Twitter/X) suggests that attempts to re-engineer the algorithm to align with a specific worldview can lead to unintended and problematic consequences. The national security label now shields the platform from transparency, making it difficult to determine the true extent of algorithmic manipulation.

Conclusion

The TikTok takeover represents a transfer of custody, not a resolution of concerns. The threat of foreign influence has been replaced by the potential for domestic manipulation. While the data is now stored in the US, the extensive data collection practices remain, and the platform’s algorithm continues to wield significant influence over the information consumed by millions of Americans. The deal highlights the complex interplay between national security, data privacy, and political power in the digital age. Recent reports of user deletions (up 150% in the 5 days following the deal) suggest potential challenges for the new TikTok US venture.