Why is US congress trying to ban TikTok? It’s complicated


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March 14, 2024

Could the US Congress really ban TikTok? Yes, but that’s not the right question. Unfortunately, the better question – why are US officials pushing for a TikTok ban? – doesn’t have a simple explanation, but it’s important to look at the nuance and various motives, some legitimate and others jealousy based, to truly see what’s going on.

The most important factor in the rare, bipartisan push from both Republican and Democratic officials trying to rein in TikTok is data privacy, and the lack of transparency from ByteDance, parent company of TikTok, as to how user data is stored, used and subject to secretive policies from the Chinese government. Make no mistake, TikTok consumes a lot of user data, and it knows a lot about what you’re watching, what you’re rewinding, what you’re sharing, and what you’re stitching (to borrow a TikTok phrase).

The app and its algorithm are the envy of the social media world. TikTok’s chief executive, Shou Zi Chew, recently said as much during his appearance at Saudi Arabia’s Leap technology conference in Riyadh. What isn’t so clear, despite multiple testimonies before Congress, is the safety of all that data, and if it’s vulnerable to compromise by ByteDance, which is based out of China.

The US isn’t alone with these concerns, not by a long shot. Try using the TikTok app in India, and you’ll get slim to no engagement. Why? It’s banned there. The app is also banned from various government-issued devices in the UK, Canada and Norway, just to name a few countries. TikTok’s accumulated data is subject to Chinese government regulations, and those regulations and laws, despite ample international prodding, are far from clear.

Youngsters record a video for TikTok in Mumbai in 2019. The app was banned in India the following year. AFP
Youngsters record a video for TikTok in Mumbai in 2019. The app was banned in India the following year. AFP
In a post-industrial world, the US is used to being the country where innovations flourish and startups set the pace for the rest of the world

Let’s circle back for a moment, to that TikTok algorithm that so many speak about with envy. Anybody who has ever used TikTok will tell you that it’s the secret sauce that makes the video-based social media app so addictive. It knows what you want to see better than you, and it is coveted, imitated and researched by startups all over the world.

That’s where fear and jealousy come into the picture.

In a post-industrial world, the US is used to being the country where innovations flourish and startups set the pace for the rest of the world. It’s not an exaggeration to say that Silicon Valley is known all over the world, along with the companies such as Apple, Meta, Google, and most recently, Nvidia and OpenAI. I could go on and on, but you get the point. TikTok broke that rhythm. Suddenly, there was a company and a social media platform that didn’t bloom from the US-based Silicon Valley garden, and whether or not elected officials and tech leaders will admit it, that made some a little uncomfortable.

Those US-based companies, which for so long were disrupting industries around the world, suddenly found themselves being disrupted and playing catchup.

Look at Meta, parent company of Facebook, Instagram and WhatsApp, to see the sort of envy that played out when TikTok’s slow but steady ascent turned into a rocket-ship blast off to social media dominance.

TikTok became the place to go, particularly for younger people on social media. User-generated video, and yes, the algorithm, made it very successful and lucrative. The incumbents, Facebook and Instagram, suddenly looked passe. So in 2020, Meta introduced Reels – short, vertical videos with various filters that let users make the most of their content.

Meanwhile, over at YouTube, owned by Google, something called Shorts were introduced. You guessed it – vertical videos that were shorter in length, which allowed users to scroll through like a slot machine to check out other content they might like.

TikTok chief executive Shou Zi Chew and Meta chief executive Mark Zuckerberg arrive to testify before the US Senate Judiciary Committee hearing in January. AFP
TikTok chief executive Shou Zi Chew and Meta chief executive Mark Zuckerberg arrive to testify before the US Senate Judiciary Committee hearing in January. AFP

Suddenly, a plethora of social media apps looked a lot like TikTok.

It still remains to be seen if YouTube Shorts will achieve mainstream success. Instagram, on the other hand, has quietly made up lost ground and managed to create an experience that’s eerily similar to TikTok. Go ahead and try using both TikTok and Instagram; I’m willing to bet that you occasionally get confused as to what app you’re in. It’s also routinely the top downloaded app in various app stores. Not an easy feat for an app that’s been around since 2010.

What’s my point? The corporate, institutional and entrepreneurial jealousy from TikTok’s success was and is very real. Meta founder Mark Zuckerberg once referred to TikTok as a “very effective competitor” in an interview with CNBC and acknowledged that his company was ″somewhat slow to this”. Now that there’s a formidable alternative to the platform (Instagram Reels), Congress has an opportunity to attempt a TikTok ban, while at the same time allowing users to potentially flock to a similar platform where it has more regulatory leverage.

I’m not suggesting that incumbent US social media companies and US elected officials conspired to knock TikTok off its pedestal. There are concerns about the lack of transparency over how TikTok uses and stores data that have yet to be addressed – and there are sometimes concerns about data leaks and privacy breaches related to media companies in the US.

I am, however, pointing out that jealousy, fear, institutional guilt, along with political concerns over personal data, are all creating a perfect storm that might be hard to survive.

As for TikTok, heavy is the head that wears the social media crown.

Tuesday's fixtures
Group A
Kyrgyzstan v Qatar, 5.45pm
Iran v Uzbekistan, 8pm
N Korea v UAE, 10.15pm

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UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Global Fungi Facts

• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil

Results:

CSIL 2-star 145cm One Round with Jump-Off

1.           Alice Debany Clero (USA) on Amareusa S 38.83 seconds

2.           Anikka Sande (NOR) For Cash 2 39.09

3.           Georgia Tame (GBR) Cash Up 39.42

4.           Nadia Taryam (UAE) Askaria 3 39.63

5.           Miriam Schneider (GER) Fidelius G 47.74

The more serious side of specialty coffee

While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.

The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.

Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”

One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.

Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms. 

How Filipinos in the UAE invest

A recent survey of 10,000 Filipino expatriates in the UAE found that 82 per cent have plans to invest, primarily in property. This is significantly higher than the 2014 poll showing only two out of 10 Filipinos planned to invest.

Fifty-five percent said they plan to invest in property, according to the poll conducted by the New Perspective Media Group, organiser of the Philippine Property and Investment Exhibition. Acquiring a franchised business or starting up a small business was preferred by 25 per cent and 15 per cent said they will invest in mutual funds. The rest said they are keen to invest in insurance (3 per cent) and gold (2 per cent).

Of the 5,500 respondents who preferred property as their primary investment, 54 per cent said they plan to make the purchase within the next year. Manila was the top location, preferred by 53 per cent.

How to keep control of your emotions

If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.

Greed

Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.

Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.

Fear

The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.

Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.

Hope

While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.

Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.

Frustration

Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.

Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.

Boredom

Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.

Tip: Open an online demo account and get your thrills without risking real money.

Major matches on Manic Monday

Andy Murray (GBR) v Benoit Paire (FRA)

Grigor Dimitrov (BGR) v Roger Federer (SUI)

Rafael Nadal (ESP) v Gilles Muller (LUX)

Adrian Mannarino (FRA) Novak Djokovic (SRB)

UAE currency: the story behind the money in your pockets
MATCH INFO

Quarter-finals

Saturday (all times UAE)

England v Australia, 11.15am 
New Zealand v Ireland, 2.15pm

Sunday

Wales v France, 11.15am
Japan v South Africa, 2.15pm

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Fifa Club World Cup quarter-final

Kashima Antlers 3 (Nagaki 49’, Serginho 69’, Abe 84’)
Guadalajara 2 (Zaldivar 03’, Pulido 90')

Updated: March 14, 2024, 2:44 PM