Business Wars: TikTok vs. the U.S.A. | Trending Upwards | Episode 1

Host: David Brown
Release Date: February 5, 2025
Series: Business Wars by Wondery

1. Introduction and Background

In the inaugural episode of Business Wars titled "TikTok vs. the U.S.A. | Trending Upwards," host David Brown delves into the intense rivalry between TikTok and major American stakeholders, including tech giants and the U.S. government. The episode chronicles TikTok’s meteoric rise in the United States, the ensuing national security concerns, and the intricate battle for dominance in the social media landscape.

2. TikTok's Entry and Explosive Growth in the U.S.

Zhang Yiming, inspired by American entrepreneurs like Bill Gates and Steve Jobs, founded ByteDance in 2012. By 2018, ByteDance launched TikTok in the U.S., aiming to rival platforms such as Instagram, Facebook, and Snapchat. Initially leveraging the acquisition of Musical Ly—a platform with a substantial, albeit predominantly preteens, user base—TikTok sought to ignite its presence in the Western market.

Despite industry skepticism that no Chinese-based app could penetrate the Western market effectively, TikTok's aggressive marketing strategy, including spending approximately $3 million daily on advertising, began to yield significant results. By 2019, TikTok had surpassed expectations, drawing users away from established platforms and solidifying its position as a formidable competitor.

3. Censorship and Data Privacy Concerns

While TikTok flourished, concerns about data privacy and censorship began to surface. Reports emerged suggesting that TikTok's recommendation algorithm suppressed content critical of the Chinese government. In September 2019, The Washington Post highlighted the lack of content related to the Hong Kong protests on TikTok, sparking suspicions that ByteDance was influencing the platform's content moderation in favor of Chinese government interests.

A whistleblower later leaked internal documents confirming that TikTok had indeed instructed moderators to restrict videos discussing various independence movements, not only in China but globally. These revelations fueled allegations that TikTok was leveraging its platform to advance Chinese geopolitical agendas, raising alarms about national security impacts.

4. Mark Zuckerberg's Concerns and Government Response

Amidst these tensions, Mark Zuckerberg, CEO of Facebook, publicly voiced his concerns about the rise of Chinese tech companies. During a speech at Georgetown University in October 2019, Zuckerberg highlighted the shift in internet dominance from American to Chinese platforms, stating:

"A decade ago, almost all of the major Internet platforms were American. Today, six of the top 10 are Chinese.... Is that the Internet that we want?"
— Mark Zuckerberg [14:40]

This statement underscored the growing unease among American tech leaders regarding foreign influence and the potential erosion of free speech on domestic platforms.

Following Zuckerberg's remarks, bipartisan efforts escalated. Senators Chuck Schumer (Democrat) and Tom Cotton (Republican) formally urged the Director of National Intelligence to investigate TikTok's potential threats to national security, focusing on data collection practices and censorship policies.

5. TikTok's Surge During COVID-19 and Social Movements

The onset of the COVID-19 pandemic in March 2020 dramatically altered the digital landscape. With lockdowns and social distancing measures in place, TikTok experienced a surge in user engagement. The platform became a primary source of entertainment and social interaction, contributing to its user base exceeding 2 billion globally by April 2020.

Simultaneously, TikTok played a pivotal role in amplifying social movements. The murder of George Floyd in May 2020 ignited nationwide protests against police brutality. TikTok became a vital tool for activists to organize, share information, and foster solidarity. The hashtag #BlackLivesMatter garnered 4.9 billion views, showcasing the platform's significant influence in shaping public discourse.

6. TikTok as a Political Tool and Influence

TikTok's integration into political activism was further exemplified during the controversy surrounding President Donald Trump's planned rally in Tulsa, Oklahoma, on June 19, 2020—a date symbolically significant due to its association with Juneteenth and the 1921 Tulsa race massacre.

Mary Jo Loup, a TikTok user, capitalized on the platform's reach to challenge the rally's timing and location. By urging followers to reserve tickets, Loup's campaign aimed to dilute the rally's attendance. Her efforts culminated in the rally being under-attended, with only 6,200 of 19,000 seats filled, despite a million tickets being reserved. This incident underscored TikTok's potential to influence political events and public opinion, thereby drawing further scrutiny from the U.S. government.

7. Attempt to Ban TikTok and ByteDance's Response

In mid-July 2020, the U.S. government intensified its stance against TikTok. Deputy National Security Advisor Matt Pottinger outlined TikTok's perceived threats:

1. Data Security: The potential for ByteDance to be compelled by the Chinese government to access American user data.
2. Misinformation: The platform's algorithm could be manipulated to spread misinformation or influence elections.

Debate ensued within the Cabinet on how to address these concerns. Options ranged from waiting for the Committee on Foreign Investment in the United States (CFIUS) to conclude its investigation, to mandating a partnership with an American company to manage TikTok’s U.S. operations, or outright banning the app.

Ultimately, President Trump announced the intention to ban TikTok, a move that prompted immediate action from ByteDance. CEO Zhang Yiming mobilized his team to counteract the ban, emphasizing TikTok's significant investments in the U.S., including hiring 1,000 American staff members and establishing a $1 billion creators fund to support U.S.-based content creators.

8. Conclusion

The episode concludes by highlighting the high-stakes battle between TikTok and the U.S. government, emblematic of broader tensions between Chinese tech enterprises and American regulatory bodies. TikTok's journey from a rising social media app to a national security concern underscores the complex interplay between technology, politics, and global influence in the modern digital era.

Notable Quotes with Attribution

• Mark Zuckerberg [14:40]:
  "A decade ago, almost all of the major Internet platforms were American. Today, six of the top 10 are Chinese.... Is that the Internet that we want?"

• YouTube Executive [23:53]:
  "I can't breathe. I can't breathe."

• YouTube Executive [31:25]:
  "What did you guys do? Like, seriously? Are you kidding me right now?"

• YouTube Executive [31:32]:
  "To those of you that are in your 20s and teens, to those of you that aren't even old enough to vote yet. Remember this moment. Remember this feeling...."

Further Reading and References

For a more comprehensive understanding of TikTok’s impact and the geopolitical implications discussed in this episode, listeners are encouraged to explore:

• "TikTok Boom" by Chris Stoeckl Walker
• "How TikTok Became a Diplomatic Crisis" by Alex W. Palmer, originally published in The New York Times Magazine

This summary is based on dramatizations and historical research as presented in the podcast. For the full narrative and immersive experience, listen to the episode on the Wondery App or your preferred podcast platform.