Concerns raised over TikTok algorithm licensing deal

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The chair of the House Select Committee on China, Representative John Moolenaar, expressed serious concerns regarding a potential licensing agreement for TikTok’s algorithm.

The deal would arise from Chinese company ByteDance’s efforts to sell its U.S. assets related to the short video app.Moolenaar awaits further details about the arrangement, which White House officials indicated would involve the new ownership licensing the algorithm.

He explained the risks associated with China maintaining influence over the algorithm, stating, “anytime you have (China) with leverage over the algorithm, I think that’s a problem.”

President Donald Trump previously signed an executive order asserting that the sale of TikTok’s U.S. operations meets national security requirements, allowing 120 days for the transaction’s completion. Moolenaar noted that technology experts question whether the algorithm can be effectively reprogrammed.

Detailed Concerns

The executive order also stated that the U.S. company’s security partners would retrain and monitor the algorithm, placing it under the control of the new joint venture.

Under the agreement, ByteDance would appoint one board member out of seven in the new entity, while Americans would occupy the remaining six seats.

The arrangement mandates that ByteDance maintain less than a 20% ownership stake in TikTok U.S. to comply with a 2024 law threatening to shut down the app by January 2025 if the Chinese parent company does not divest its U.S. assets.

Holders of key positions worry about potential national security risks linked to algorithm control.