Why TikTok's Security Risks Keep Raising Fears

The TikTok app logo is seen in this illustration taken, August 22, 2022. (Reuters)
The TikTok app logo is seen in this illustration taken, August 22, 2022. (Reuters)
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Why TikTok's Security Risks Keep Raising Fears

The TikTok app logo is seen in this illustration taken, August 22, 2022. (Reuters)
The TikTok app logo is seen in this illustration taken, August 22, 2022. (Reuters)

TikTok is once again fending off claims that its Chinese parent company, ByteDance, would share user data from its popular video-sharing app with the Chinese government, or push propaganda and misinformation on its behalf.

China’s Foreign Ministry on Wednesday accused the United States itself of spreading disinformation about TikTok's potential security risks following a report in the Wall Street Journal that the Committee on Foreign Investment in the US — part of the Treasury Department — was threatening a US ban on the app unless its Chinese owners divest their stake, The Associated Press said.

So are the data security risks real? And should users be worried that the TikTok app will be wiped off their phones?

Here’s what to know:

WHAT ARE THE CONCERNS ABOUT TIKTOK?

Both the FBI and the Federal Communications Commission have warned that ByteDance could share TikTok user data — such as browsing history, location and biometric identifiers — with China’s authoritarian government.

A law implemented by China in 2017 requires companies to give the government any personal data relevant to the country’s national security. There’s no evidence that TikTok has turned over such data, but fears abound due to the vast amount of user data it, like other social media companies, collects.

Concerns around TikTok were heightened in December when ByteDance said it fired four employees who accessed data on two journalists from Buzzfeed News and The Financial Times while attempting to track down the source of a leaked report about the company.

HOW IS THE US RESPONDING?

White House National Security Council spokesperson John Kirby declined to comment when asked Thursday to address the Chinese foreign ministry's comments about TikTok, citing the review being conducted by the Committee on Foreign Investment.

Kirby also could not confirm that the administration sent TikTok a letter warning that the US government may ban the application if its Chinese owners don’t sell its stake but added, “we have legitimate national security concerns with respect to data integrity that we need to observe.”

In 2020, then-President Donald Trump and his administration sought to force ByteDance to sell off its US assets and ban TikTok from app stores. Courts blocked the effort, and President Joe Biden rescinded Trump’s orders but ordered an in-depth study of the issue. A planned sale of TikTok’s US assets was also shelved as the Biden administration negotiated a deal with TikTok that would address some of the national security concerns.

In Congress, US Sens. Richard Blumenthal and Jerry Moran, a Democrat and a Republican, wrote a letter in February to Treasury Secretary Janet Yellen urging the Committee on Foreign Investment panel, which she chairs, to “swiftly conclude its investigation and impose strict structural restrictions” between TikTok's American operations and ByteDance, including potentially separating the companies.

At the same time, lawmakers have introduced measures that would expand the Biden administration's authority to enact a national ban on TikTok. The White House has already backed a Senate proposal that has bipartisan support.

HOW HAS TIKTOK ALREADY BEEN RESTRICTED?

On Thursday, British authorities said they are banning TikTok on government-issued phones on security grounds, following similar moves by the European Union’s executive branch, which temporarily banned TikTok from employee phones. Denmark and Canada have also announced efforts to block it on government-issued phones.

Last month, the White House said it would give US federal agencies 30 days to delete TikTok from all government-issued mobile devices. Congress, the US armed forces and more than half of US states had already banned the app.

WHAT DOES TIKTOK SAY?

TikTok spokesperson Maureen Shanahan said the company was already answering security concerns through “transparent, US-based protection of US user data and systems, with robust third-party monitoring, vetting, and verification.”

In June, TikTok said it would route all data from US users to servers controlled by Oracle, the Silicon Valley company it chose as its US tech partner in 2020 in an effort to avoid a nationwide ban. But it is storing backups of the data in its own servers in the US and Singapore. The company said it expects to delete US user data from its own servers, but it has not provided a timeline as to when that would occur.

TikTok CEO Shou Zi Chew is set to testify next week before the House Energy and Commerce Committee about the company’s privacy and data-security practices, as well as its relationship with the Chinese government.

Meanwhile, TikTok’s parent company ByteDance has been trying to position itself as more of an international company -- and less of a Chinese company that was founded in Beijing in 2012 by its current chief executive Liang Rubo and others.

Theo Bertram, TikTok’s vice president of policy in Europe, said in a Tweet Thursday that ByteDance “is not a Chinese company.” Bertram said its ownership consists of 60% by global investors, 20% employees and 20% founders. Its leaders are based in cities like Singapore, New York, Beijing and other metropolitan areas.

ARE THE SECURITY RISKS LEGITIMATE?

It depends on who you ask.

Some tech privacy advocates say while the potential abuse of privacy by the Chinese government is concerning, other tech companies have data-harvesting business practices that also exploit user information.

“If policy makers want to protect Americans from surveillance, they should advocate for a basic privacy law that bans all companies from collecting so much sensitive data about us in the first place, rather than engaging in what amounts to xenophobic showboating that does exactly nothing to protect anyone,” said Evan Greer, director of the nonprofit advocacy group Fight for the Future.

Karim Farhat, a researcher with the Internet Governance Project at Georgia Tech, said a TikTok sale would be “completely irrelevant to any of the alleged ‘national security’ threats” and go against “every free market principle and norm” of the state department’s internet freedom principles.

Others say there is legitimate reason for concern.

People who use TikTok might think they’re not doing anything that would be of interest to a foreign government, but that’s not always the case, said Anton Dahbura, executive director of the Johns Hopkins University Information Security Institute. Important information about the United States is not strictly limited to nuclear power plants or military facilities; it extends to other sectors, such as food processing, the finance industry and universities, Dahbura said.

IS THERE PRECEDENCE FOR BANNING TECH COMPANIES?

Last year, the US banned the sale of communications equipment made by Chinese companies Huawei and ZTE, citing risks to national security. But banning the sale of items could be more easily done than banning an app, which is accessed through the web.

Such a move might also go to the courts on grounds that it might violate the First Amendment as some civil liberties groups have argued.



OpenAI Enters Google-Dominated Search Market with SearchGPT 

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
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OpenAI Enters Google-Dominated Search Market with SearchGPT 

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)

OpenAI is venturing into a territory long dominated by Google with the selective launch of SearchGPT, an artificial intelligence-powered search engine with real-time access to information from the internet.

The move, announced on Thursday, also places the AI giant in competition with its largest backer Microsoft's Bing search and emerging services such as Perplexity — a search-focused AI chatbot firm backed by Amazon founder Jeff Bezos and semiconductor giant Nvidia.

Shares of Google's parent company Alphabet ended 3% lower on Thursday after OpenAI's announcement.

OpenAI said it has opened sign-ups for the new tool, which is currently in the prototype stage and is being tested with a small group of users and publishers. The company plans to integrate the best features from the search tool into ChatGPT in the future.

"AI-powered search tools from OpenAI and Perplexity re-affirm search as a content engagement model but pressure Google to be better at its own game," Canaccord Genuity analyst Kingsley Crane said.

Google dominates the search engine market with a 91.1% share as of June, according to web analytics firm Statcounter.

SearchGPT will provide summarized search results with source links in response to user queries, OpenAI said in a blog post. Users will also be able to ask follow-up questions and receive contextual responses.

The company will give publishers access to tools for managing how their content appears in SearchGPT results. News Corp and The Atlantic are publishing partners for SearchGPT.

SearchGPT signals a closer collaboration between publishers and OpenAI, following content licensing agreements with major organizations like Associated Press, News Corp and Axel Springer.

"Newer AI-powered search providers could face challenges of their own, with Perplexity already facing pending legal action from publishers like Wired and Forbes, and Condé Nast," said Crane.

Major search engines have been trying to integrate AI into search since ChatGPT first launched in November 2022. Microsoft, through its early investment, adopted OpenAI technology for its Bing search engine, while Google rolled out AI-powered summaries for the wider public at its developer conference in May.

Google did not respond to a Reuters query on the potential impact of SearchGPT on its business.

Reuters had earlier reported on OpenAI's plans around AI search in May.