A new algorithm, which will be under the control of Trump allies, could lead to a ‘user revolt’, analysts warn (Copyright 2020 The Associated Press. All rights reserved)
TikTok's Chinese parent company, ByteDance, is reportedly close to a deal to transfer its US operations to American owners following a nationwide ban.
The ban, initially signed by Joe Biden and upheld by the Supreme Court, mandated ByteDance's divestment due to concerns over alleged ties to the Chinese Communist Party.
The proposed agreement would introduce a new US-only version of TikTok, featuring an algorithm audited by Oracle and retrained using solely US user data.
Analysts warn that these changes could degrade the user experience, potentially leading to a 'user revolt' and prompting advertisers to reallocate their spending.
Concerns have been raised that investors with connections to President Trump, including Oracle, Silver Lake, and Andreessen Horowitz, could influence the app's content and policies.