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What to know about the deal to keep TikTok in US

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What to know about the deal to keep TikTok in US

TikTok has at last finalized a deal to keep the popular video sharing platform operating in the U.S. after years of uncertainty, but questions remain about whether users’ experience will change and whether the changes actually address security concerns around the app.

Here’s what to know about the deal, which created a new TikTok U.S. joint venture after social video platform company signed agreements with major investors including Oracle, Silver Lake and the Emirati investment firm MGX.

Why was the deal needed?

After wide bipartisan majorities in Congress passed — and President Joe Biden signed — a law that would ban TikTok in the U.S. if it did not find a new owner in the place of China’s ByteDance, the platform was set to go dark on the law’s January 2025 deadline. For several hours, it did. But on his first day in office, President Donald Trump signed an executive order to keep it running while his administration sought an agreement for the sale of the company. A string of orders continued to extend the deadline until this deal was reached.

In this July 21, 2020 file photo, a man opens social media app 'TikTok' on his cell phone, in Islamabad, Pakistan. (AP Photo/Anjum Naveed, File)

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We don’t know how the TikTok experience will change, but there’s no new app

AP AUDIO: What to know about the deal to keep TikTok in US

AP correspondent Donna Warder reports on a U.S. TikTok deal.

American TikTok users can continue using the same app, according to TikTok. But exactly what American users will see on their TikTok feeds once the changeover happens remains unclear.

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The algorithm — the secret sauce that powers its addictive video feed — powering the U.S. backend will be licensed from ByteDance and then retrained on U.S. user data. The act of retraining the content recommendation formula is certain to at least have subtle changes to a user’s personalized feeds.

Any noticeable changes made to a social media platform’s service raises the risk of alienating its audience, said Jasmine Enberg, an analyst for the research firm eMarketer.

TikTok’s press release claims U.S. creators will still be discoverable in other regions worldwide, and businesses will be able to maintain global reach. But how interoperability between the U.S. and ByteDance to maintain a global TikTok experience is currently unknown.

The retrained algorithm means that the trends — “and what dominates feeds — will feel distinctly American,” said Forrester analyst Kelsey Chickering.

“Global content will still appear, but its ranking will change,” she said. “This matters because the algorithm is the heartbeat of the app’s addictive experience. The question becomes: Will a U.S.-centric feed supercharge engagement, or will it chip away at TikTok’s cultural cachet?”

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What is known, however, is that there is an updated Terms of Service.

One of the updates notes that while users retain ownership of their content, TikTok is able to use that content to operate or improve the platform, subject to settings.

Americans under the age of 13 will be limited to an “Under 13 Experience.”

And users are also responsible for any posted AI-generated content and must label it as created by artificial intelligence.

TikTok’s new owners have ties to Trump

Although he no longer runs Oracle as its CEO, company co-founder Larry Ellison remains a top executive while also overseeing an estimated personal fortune of $225 billion. Ellison, 81, now could be in line to become a behind-the-scenes power player in the media, having already helped finance Skydance’s recently completed $8 billion merger with Paramount, a deal engineered by his son, David. Ellison’s relationship with the Trump administration dates back to the president’s first term, where he played a role in the administration’s efforts to get ByteDance to sell TikTok.

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These ties have raised concerns among some users around content moderation and what videos American users will see on their feeds.

“If moderation happens to tilt toward one political viewpoint or fails to curb misinformation, TikTok risks a user exodus to rival platforms,” Chickering said. “We’ve seen this before when Twitter’s transformation into X triggered fallout from users and advertisers.”

Vice President JD Vance, who was tasked with helping lead the White House’s efforts to find a U.S. buyer for TikTok, was involved in negotiating meetings along with way, as was Trump, according to a person familiar with the meetings who was not authorized to speak publicly.

In September, when U.S. officials including Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, met in Madrid with Chinese officials, Vance and Trump joined some of the negotiating meetings by phone and they pressured China to agree a deal by the end of the trip, which they did, according to the official.

That led to Trump’s September executive order that allowed TikTok to continue operating in the U.S.

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The deal does not completely address security concerns in the law

Lawmakers previously expressed concern that the Chinese government could use TikTok’s algorithm to push propaganda or gather data on individual users, a key reason Congress passed legislation in 2024 requiring the company’s divestment from Beijing-based owner ByteDance.

The law prohibits “any cooperation with respect to the operation of a content recommendation algorithm” between ByteDance and a new potential American ownership group, so it is unclear how ByteDance’s continued involvement in this arrangement — especially since they will license the algorithm to the U.S. entity — will play out.

How are users and creators reacting?

Skip Chapman, co-owner of KAFX Body in Manasquan, New Jersey, which makes and sells natural deodorants, launched his business in April 2023 on TikTok when TikTok shop was still in beta testing. He said he’s mainly glad he can stop worrying about the potential of a TikTok ban, the threat of which has been looming over his business for over a year. He sells his products on his own website and Amazon, but 80% of sales still come from the TikTok shop and it is the primary way he reaches new customers.

He said he is cautiously optimistic the deal will be good for TikTok and his shop, but he is a little concerned that the new owners might de-prioritize the e-commerce aspect of TikTok.

“The past two years, TikTok has really leaned into this live social commerce and just the ability to sell on the platform and they’ve kind of prioritized it and I’m hoping that the new owners continue to prioritize it and even more so add more features, more benefits, more opportunities for my business,” he said.

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Vanessa Barreat owns La Vecindad Mexican restaurant in Las Vegas, and she has TikTok page for the restaurant that has over 100,000 followers. Visibility on the site has helped her attract customers, particularly out-of-towners, and spend less on marketing.

She said she’s in a “wait-and-see mindset” about the deal.

“Anytime there’s a major shift or deal, there’s uncertainty, but I’m not operating from fear,” she said. “TikTok has empowered so many voices that historically didn’t have access to platforms like this, and that impact doesn’t disappear overnight.”

AP Business Writer Mae Anderson in Nashville, Tennessee and Michelle Price in Washington contributed to this story.

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Anthropic pledges $200 million to research AI’s economic impact as CEO suggests job loss solutions

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Anthropic pledges 0 million to research AI’s economic impact as CEO suggests job loss solutions

Anthropic on Wednesday joined growing calls for the artificial intelligence industry to find ways to cushion people from the technology’s disruptions, announcing an initial $200 million investment to research AI’s impact on jobs and the economy.

Alongside new policy proposals from the maker of the Claude chatbot, Anthropic CEO and co-founder Dario Amodei published an essay on his personal website that expanded on his position that the government should promise economic support for those financially impacted by AI. The technology could produce much larger disruptions to the labor market than previous technological advancements, Amodei wrote, and those disruptions could last longer.

“The key challenge in such a world won’t be incentivizing growth, but finding a way for everyone to share in the benefits,” Amodei wrote.

The announcement comes on the heels of Anthropic rival OpenAI on Monday outlining goals that included ensuring gains from the technology are “widely shared.” OpenAI CEO Sam Altman recently met with Sen. Bernie Sanders to discuss a plan for the public to take an ownership stake in artificial intelligence companies like OpenAI, using their stock to create a public wealth fund that would spread the fortune generated by AI behemoths.

In the Oval Office on Wednesday, President Donald Trump told reporters that he will soon meet with executives from several leading AI companies to discuss “giving back” to the public.

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“We’re talking about giving back something to the public, and if we do that, the ⁠public will become very rich,” Trump said. “I think they’ll do that, and I think it’ll make it very popular.”

In his essay, Amodei said he has warned of job displacement not because he is “trying to be a ‘prophet of doom’” but because he wants “both policymakers and the private sector to have the best chance to adapt and respond.” He proposed better data collection to track AI job displacement, pro-employment policy incentives to slow or reduce displacement and “mechanisms such as universal basic income” if job displacement more permanently drives down labor demand.

That universal basic income could be financed through taxes on “relevant companies” or by raising the capital gains tax, Amodei wrote.

Scant details were available Wednesday about the $200 million commitment from Anthropic, but the company said it will go to what it calls an Economic Futures Research Fund that will back research trials and “program evaluation” on public policies it deems promising. The company is also establishing a $150 million national fellowship program it says will help early-career professionals “extend the benefits of AI to communities across America.”

Anthropic and OpenAI each recently announced they were moving toward initial public offerings of shares, following Elon Musk’s rocket company SpaceX, which is pitching itself as an AI-focused space company as it prepares to go public.

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The economic policy framework Anthropic proposed Wednesday set recommendations for how the U.S. government could respond to three levels of economic disruption caused by AI: one in which the national unemployment rate reaches 5%, 10% and an unspecified, “unprecedented” level. The latest unemployment rate, reported last week, was 4.3%.

In the “unprecedented” scenario, the company wrote that more permanent support will be necessary, and it listed several ways to generate and share revenue broadly, including basic income, sovereign wealth models and equity-sharing mechanisms. This would be “novel economic territory,” the company wrote.

The company’s proposals also outlined several suggestions for mitigating safety and security risks. Anthropic is known for its emphasis on safety and building reliable, “steerable” AI systems, with Amodei and its co-founders splitting off from OpenAI to form the new company in 2021.

The proposals add that the government should be able to “block or deter” the rollout of AI models that “pose a significant risk of catastrophic harms.”

Amodei wrote that AI regulations should match the rigor of Federal Aviation Administration regulations in that AI models would be required to go through technical testing and auditing like airplanes. They wouldn’t be released if they didn’t meet high safety standards.

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Last week, Trump signed an executive order on AI oversight that established a framework for the government to vet the national security risks of the most advanced AI systems for up to a month before their public release.

Amodei added existing regulations for aircraft, automobiles and drugs should serve as models for regulating AI. They are all “powerful technologies essential to the modern economy,” he wrote, “but capable of killing large numbers of people if designed or operated poorly.”

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UK spy powers draw US scrutiny over alleged Apple encryption backdoor demand

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UK spy powers draw US scrutiny over alleged Apple encryption backdoor demand

NEWYou can now listen to Fox News articles!

U.K. surveillance laws drew scrutiny from House Judiciary Committee Chairman Jim Jordan, R-Ohio June 5 amid warnings they could expose communications of officials and American citizens, according to reports.

The concern centered on the U.K.’s use of secret Technical Capability Notices under the Investigatory Powers Act, which critics say could make U.S. companies weaken encryption or create “backdoors” weaken encryption or create “backdoors” while preventing firms from disclosing requests without U.K. government approval.

Critics have argued this could undermine privacy, create vulnerabilities and limit congressional oversight with one former intelligence official warning of a “standing invitation to Beijing.”

“We have already seen how this ends,” former Department of Defense official Andrew Badger told Fox News Digital.

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JD VANCE ‘DIRECTLY’ CONVINCED UK TO DROP APPLE BACKDOOR DATA DEMAND, PROTECTING AMERICANS’ RIGHTS: US OFFICIAL

Rep. Jim Jordan said Republicans are “the party of common sense,” and Democrats are “the party that takes these crazy positions.” (Kevin Dietsch/Getty Images)

“There are legitimate privacy concerns here, and those have been well aired. The less examined issue is national security,” Badger said.

“A backdoor compelled by one ally becomes a standing invitation to Beijing, Moscow and Tehran so once one government can quietly compel access, others will demand the same, and a one-off concession hardens into a permanent vulnerability,” he warned.

According to the Telegraph, a June 5 letter sent by Jordan to U.K. Home Secretary Shabana Mahmood, showed the Trump ally had called for a review.

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The report said Mahmood’s decision had been to deny a U.S. company permission to speak with Congress about an alleged encryption backdoor notice.

Jordan was also said to have warned that a lack of bilateral coordination raised concerns about the “trust and effective partnership between our two countries.”

“Five Eyes works because every partner trusts the others not to weaken the systems they all depend on,” Badger, co-author of “The Great Heist: China’s Epic Campaign to Steal America’s Secrets,” said.

“If Washington also concludes that U.K. surveillance powers could inadvertently expose Americans and American officials to espionage, it puts real strain on the relationship and makes future cooperation on intelligence and cyber harder to sustain.”

US SPIES URGED TO REFOCUS EFFORTS ON AMERICA’S BACKYARD, NEW HOUSE INTEL CHAIR SAYS

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The Thames House headquarters of MI5 in London on Nov. 18, 2025. Britain’s domestic security service has warned of growing state-backed threats, including more than 20 Iran-backed plots uncovered in the UK, as lawmakers consider new legislation targeting foreign state-linked groups. (Betty Laura Zapata/Bloomberg via Getty Images)

On the encryption issue, Badger noted that mainstream encrypted platforms now function as “de facto infrastructure for sensitive communication well beyond the consumer market.”

“Any access point built into them becomes a permanent target. It is not a private key the requesting government gets to keep to itself,” he said.

U.S. and British cyber officials have also repeatedly warned that an axis of hostile states — including Russia, China and Iran — poses threats to Western security and infrastructure.

As previously reported by Fox News Digital, cyberespionage by groups such as Salt Typhoon, linked to China, has carried out operations targeting sensitive communications.

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“China is actively running one of the largest state-backed cyberespionage operations ever uncovered. The Salt Typhoon campaign has targeted hundreds of organizations across roughly 80 countries and, through those intrusions, gained access to sensitive communications and networks used by senior Western officials,” Badger warned.

“Chinese state hackers didn’t defeat encryption. They walked straight through the lawful-intercept systems telecom providers had built, reaching the communications of senior officials and even information about surveillance targets.”

CHINESE BIOWEAPON SMUGGLING CASE SHOWS US ‘TRAINS OUR ENEMIES,’ ‘LEARNED NOTHING’ FROM COVID: SECURITY EXPERT

The flag of China is flown behind a pair of surveillance cameras outside the Central Government Offices. (Roy Liu/Bloomberg via Getty Images)

Reports also surfaced that U.K. Foreign Secretary Yvette Cooper used a burner phone during a recent trip to Beijing and raising further concerns about state-sponsored espionage.

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Badger noted that the episode reflects a broader pattern of Chinese targeting of British democratic institutions, including the “hacking of senior Downing Street officials’ phones and an Electoral Commission breach that exposed the data of roughly 40 million voters,” he said.

“The telling thing is that no one issues burner phones for a trip to Sweden or Germany,” he said.

“The precaution is itself an admission of the threat environment. The working assumption — correctly — is that anything digital taken into China should be treated as potentially compromised.”

The systemic vulnerability also highlights a fundamental contradiction in Western diplomatic strategy, according to Badger.

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“This case perfectly underscores the contradiction at the heart of the U.K. Labour government’s China policy: chasing positive economic relations and expanded trade with Beijing on one hand, while being forced to take elaborate precautions against a state whose core interests remain fundamentally at odds with its own on the other,” Badger said.

“You can’t simultaneously treat China as a trusted economic partner and a hostile intelligence threat. It’s a fundamental contradiction. The need to use burner phones symbolically underscore this.”

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Trade and defence top of agenda at EU-South Korea summit

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Trade and defence top of agenda at EU-South Korea summit

European Commission President Ursula von der Leyen, European Council President Antonio Costa and with South Korean President Lee Jae-myung celebrated the signing of new a digital trade agreement at a ceremony in Brussels on Wednesday.

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The event marked the EU and South Korea’s 11th summit, with everything from security and defence to trade on the agenda.

“Korea is one of Europe’s closest partners in the Indo-Pacific region and on the global stage,” von der Leyen said. “In today’s uncertain world, stable and trusted partnerships like ours are more precious than ever.”

The trio released a joint statement extolling the value of the talks and committing the two sides to a firm and friendly relationship.

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“We reaffirm our shared commitment to effective multilateralism, and to a stable and predictable rules-based free and fair economic order,” the statement reads.

The semiconductor factor

Both sides have an interest in diversifying their trade relationships at a time of growing tensions with both China and the US, and the EU-South Korea digital trade agreement comes more than a decade after a landmark free trade deal.

Since 2015, trade between the EU and South Korea has doubled, with goods trade reaching approximately €124.25 billion in 2025, according to figures from the European Commission.

“The European Union-Korea Free Trade Agreement remains one of the European Union’s most successful trade agreements since its entry into enforcement in 2011,” European Council António Costa said on Wednesday.

South Korea is becoming an increasingly important investor in Europe, particularly in strategic sectors such as batteries, electric vehicles and semiconductors.

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For the EU, a key objective is to secure semiconductor supply chains while attracting further investment from Korean companies into Europe.

“Korea has a global leadership position in semiconductors,” an EU official said. “This is clearly an area with significant potential for cooperation that would benefit both sides.”

The digital trade agreement concluded on Wednesday is expected to complement the broader trade partnership by reducing “unnecessary barriers to digital trade” and providing greater “legal certainty” for businesses operating across the two markets, according to another EU official. It will facilitate cross-border data flows while prohibiting the mandatory transfer of source code.

The deal is also designed to establish robust online consumer protection rules, though both partners intend to maintain their respective levels of protection for personal data and privacy.

Economic security was also high on the summit agenda, with the two sides agreeing to establish a high-level dialogue on supply chain resilience.

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Supply chains came under pressure last year following China’s restrictions on exports of strategic materials, including rare earths – essential for green technologies and the defence sector – as well as products linked to the chip industry, which are critical to automotive manufacturing.

Security and defence

One thing that did not get over the line was a security of information agreement, which had been touted by EU officials prior to the summit as a means of strengthening the flow of classified information between Brussels and Seoul.

“I hope that the security of information agreement will be adopted soon, so that Korea and the EU can share confidential information safely, which will allow the two sides to engage in industrial and research cooperation actively through information exchange exchange,” President Lee said on Wednesday.

The agreement would build on the Security and Defence Partnership agreement that South Korea and the EU signed in 2024. That deal was designed to facilitate cooperation in areas spanning maritime security, countering hybrid threats, fighting foreign information manipulation and interference, and more besides.

In the run-up to this week’s talks, a senior EU official said a key topic of the discussions will be nuclear non-proliferation, as North Korea continues to hold a small but concerning stockpile of nuclear-armed warheads.

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North Korea (the DPRK) and Russia were considered “big questions” at the summit, the source said, with Brussels ready to share information on its support for Ukraine with Seoul.

The joint statement from the summit reiterates this, with words of condemnation directed at North Korea and other nations who enable Russia to sustain its war of aggression against Ukraine.

“We urge Russia and the DPRK to immediately cease all such activities and abide by the UN Charter and all relevant United Nations Security Council resolutions,” the statement reads.

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