TikTok‘s New Era: What Changes Lie Ahead Under American Ownership?

In a significant shift for the popular social media platform TikTok, a consortium of American companies is set to take control, marking a pivotal moment in the app’s history. This transition comes amid ongoing concerns about data privacy and national security, particularly regarding its previous ownership by the Chinese company ByteDance. As the platform prepares for this new chapter, questions arise about how the algorithm will be retrained and what this means for users worldwide.

The Consortium Behind TikTok’s New Ownership

The consortium leading the charge includes notable figures such as Oracle’s co-founder Larry Ellison, media moguls Rupert and Lachlan Murdoch, and tech entrepreneur Michael Dell. Investment firms Silver Lake Partners and the UAE-based MGX are also part of this group. According to reports from Bloomberg, each of these entities could hold approximately a 15% stake in the newly structured TikTok.

This consortium will oversee a seven-member board of directors, primarily composed of American national and cybersecurity experts. The White House has confirmed that six of these members will be American citizens, while ByteDance will retain the right to appoint one board member. This arrangement suggests that while the Murdochs and their partners will have a voice in the platform’s direction, they will not have unilateral control.

Algorithmic Changes: What to Expect

Tom Sulston, head of policy at Digital Rights Watch, has expressed skepticism about the extent of changes users can expect. He noted that TikTok, like many social media platforms, is fundamentally driven by profit motives. “It’s about clicks, eyeballs, and money,” Sulston stated, emphasizing that the algorithm will likely continue to prioritize attention-grabbing content aimed at maximizing user engagement.

While former President Donald Trump has indicated a desire for the platform to prioritize “Make America Great Again” (MAGA) content, he also assured that the new TikTok would not be manipulated to favor any particular group. “Every group will be treated fairly,” Trump claimed during the announcement of the deal.

The Murdochs’ Influence: A Double-Edged Sword

The Murdoch family’s involvement raises questions about the potential for bias in content curation. With a media empire that includes Fox News and other outlets, their influence could shape the platform’s narrative. However, the extent of this influence remains uncertain. The Murdochs will have a seat at the table but will not control the entire operation.

TikTok boasts over a billion users globally, with significant user bases in the United States and Australia. This vast audience presents both opportunities and challenges for the new ownership group, particularly in navigating the complex landscape of social media regulation and user expectations.

User Experience: Will It Change?

Despite the ownership transition, Sulston believes that the overall user experience will remain largely unchanged. The algorithm will still be tailored to deliver content based on individual user data and internet history. “Users were already being surveilled through the app, and that’s unlikely to change,” he noted. This raises ongoing concerns about data privacy, especially for users in Australia, where local tech giants also collect substantial amounts of personal information.

While the move to store U.S. user data domestically may alleviate some fears regarding Chinese access to sensitive information, it does not necessarily provide complete reassurance for users in other countries. The reality is that major U.S. tech companies also engage in extensive data collection practices.

The Challenge of Misinformation

One of the pressing issues facing TikTok, regardless of its ownership, is the prevalence of misinformation and extreme content. Sulston pointed out that such content often garners significant engagement, making it a staple of social media algorithms. “Misinformation and hateful content is engaging … it sucks you in,” he remarked, suggesting that the new TikTok will still be driven by commercial interests rather than political agendas.

A Global Platform: What About Australian Users?

Reports had initially suggested that the new ownership structure could lead to a U.S.-only version of TikTok, while the rest of the world would continue using the existing platform. However, the latest announcements indicate that the new TikTok will remain a single, global entity, transitioning away from Chinese ownership to a consortium of U.S. businesses.

Next Steps: What Lies Ahead?

While the deal for the new TikTok is not yet finalized, it represents a significant step toward reshaping the platform’s future. Chinese officials must still approve the plan, and the specifics of the business arrangement will take time to finalize. Once completed, control of the app will gradually shift to the U.S.-based consortium.

As this transition unfolds, the implications for users, advertisers, and content creators will become clearer. The new ownership structure may bring about changes in content moderation, data privacy practices, and user engagement strategies, but the core challenges of misinformation and user surveillance are likely to persist.

Conclusion

The impending transition of TikTok to American ownership marks a crucial juncture in the platform’s evolution. With a powerful consortium at the helm, the app faces both opportunities and challenges as it navigates the complex landscape of social media. While users may not see drastic changes in their experience, the implications of this new ownership will resonate across the digital landscape, shaping the future of content creation and consumption on one of the world’s most popular platforms. As the world watches, the question remains: will TikTok emerge as a safer, more responsible platform, or will it continue to grapple with the same issues that have plagued social media for years?