Did you enjoy watching TikTok video, and did you know that TikTok invaded your privacy?

Summary

• ByteDance recently came into radar, as leading media reports revealed the Company breaching Google policy to collate the user data without disclosing the same to their users.
• The news came in a moment when Trump administration had been weighing ways to restrict usage of TikTok app and has given the Company time till 15 September to strike a deal regarding divestment of TikTok’s US operations.
• Two tech leaders Microsoft and Twitter have shown interests in the US operations of TikTok with discussions still at nascent stage.
• The White house is troubled from the fact that the data collated of users may be used against the individuals by Chinese government, if procured from TikTok.
• ByteDance had previously paid a fine of US$5.7 million to the Federal Trade Commission for illegally gathering personal data from underage children below 13, without taking any parental consent.

TikTok app has been one of the most popular apps around the world with teens and generation Z glued to their mobile sets, creating, and accessing videos.

In a very short time, the app experienced more than billion downloads. The social media app is owned by China based firm, ByteDance, and was launched in 2016 as Douyin. A year later, the app travelled international borders as TikTok and gained massive popularity in Asia. ByteBance also bought a US based video sharing app Musical.ly and later merged it with TikTok.

Both the apps added millions of users, giving data access of millions of users to the Company ByteDance.

The shocking revelation

Recently, according to media reports, it was revealed that TikTok app had been tracking its users online without allowing its users to opt out, thus violating Google’s policy that restrict apps from tracking people.

The information of tracking the users was not provided by the Company. According to technology experts, an additional layer encryption was hiding this practise, which the company stopped in November 2019. The company had been tracking the data for almost 15 months.

The information came out when many economies around the world were shunning off China made products from their shelves and discussing on prohibiting the use of China based apps.

Furthermore, with Twitter (TWTR) and Microsoft (MSFT) eyeing the US operations of TikTok as potential acquisition, the data privacy contingency has certainly created a hard space for the TikTok parent ByteDance with pressure mounting from the White House. The news is also acting as a damper as ByteDance intends to sue Trump government as a response to save its US business, according to news report.

The White house Concern

The White house is troubled over the fact that the identifiers, also called MAC addresses, collated by TikTok, could be procured by the Chinese government, which may lead to espionage targeting individuals. The identifiers or MAC addresses are in general utilised for advertising purposes. The White House mentioned that it was concerned that users' data might be utilised in creating comprehensive case history of people for blackmailing them.

Trump recently called for an executive order banning "any transactions" between Americans and TikTok or Wechat for 45 Days; however, the legality of the order is still in question.

In July, Trump administration was also assessing steps taken against TikTok including a national level ban on TikTok or divestment of the US operation of TikTok by ByteDance. Trump reluctantly has given ByteDance time till 15 September to finalise an acquisition deal.

ByteDance, in order to save TikTok's US operations, has started to look for US based investors or tech companies, and have received proposals from Twitter and Microsoft. Its US based operations are being valued between $10-$50 billion, with only Microsoft confirming being in talks with ByteDance regarding the acquisition of the US operations of TikTok.

Also Read: The TikTok Talk: Microsoft's Efforts around Pocketing a Big deal

Earlier in 2019 February, TikTok had paid US$5.7 million as fine to the Federal Trade Commission (FTC) as settlement towards allegation that the Company illegally gathered personal data from underage children below 13, without taking any parental consent.

Since the settlement, the advocates representing the children have been accusing TikTok of violating FTC settlement by not changing its policies and denying removing videos and data acquired illegally. This has led FTC and US Justice Department to look at the allegations that defies the 2019 agreement.

A federal investigation commenced through Committee on Foreign Investment in the United States (CFIUS) in November 2019 focusing on ByteDance's acquisition of the US based video sharing App, Musical.ly in 2017. Any decision is yet to be publicly released by CFIUS.

However, the Company has highlighted that the privacy and user’s data will remain safe and that it keeps updating its app to address emerging security challenges. The Company also said that the current TikTok App version does not gather MAC addresses.

Also Read: Trump Cuts US ties with ByteDance and Tencent