Texas is new nexus for social media companies
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The TikTok ban looms. Photo: CFOTO/Future Publishing via Getty Images
Texas has become the epicenter of the future of social media.
Why it matters: Social media companies have contributed billions of dollars to the Texas economy in recent years.
- The state is home to a TikTok security initiative meant to quell data sharing concerns on the app, the new headquarters for Elon Musk's X and will soon host Meta's U.S. content review team.
Driving the news: The Supreme Court seems inclined to uphold a law that would ban TikTok in the U.S. starting Sunday.
- TikTok — known for its highly addictive algorithm and dance trends — is one of the most popular social media apps in the country.
Catch up fast: A bipartisan law passed last year requires the Chinese company ByteDance, which owns TikTok, to either sell the app to a U.S. company or shut down its American operations by Sunday.
- The bill alleges the Chinese Communist Party could influence app operations or control software on American mobile devices.
- Unless the Supreme Court strikes down the ban, the app will be removed from phone app stores.
Reality check: Texas is a beneficiary of TikTok. The company contributed more than $2 billion to Texas' economy in 2023, according to a company-paid report released last April.
- TikTok has routed all U.S. user data through Austin-based tech company Oracle since 2022, to prevent American user data from being accessed by ByteDance. The company has spent $1.5 billion on the effort, known as Project Texas.
The intrigue: "Bans" and "TikTok" have been rising in Google search interest among North Texans in the past week.
- Interest in "bans" has increased 450% and interest in "TikTok" has increased 170%.
- Many are also searching for Xiaohongshu, a Chinese social media app that is now No. 1 in app stores.
Flashback: In 2021, Texas passed a law that prevents social media companies like X and Instagram from censoring political viewpoints shared on the platforms. The bill was backed by Gov. Greg Abbott, who said the companies were pushing to "silence conservative ideas."
Zoom in: Meta, which operates Instagram and Facebook, is moving its content moderation team to Texas as part of its effort to roll back fact-checking initiatives.
- Meta founder Mark Zuckerberg said the company will "work with President Trump to push back on governments around the world going after American companies and pushing to censor more."
- The change is similar to how X handles content moderation under Musk's ownership.
- Meanwhile, Meta agreed to pay Texas $1.4 billion to settle a facial recognition lawsuit filed by the state.
Yes, but: Many TikTok users are vowing to give up Meta social media products after the fact-checking change and because of reports that Zuckerberg has funded lobbying groups to undermine TikTok.
- Content creators on Xiaohongshu, known in English as Red Note, are already welcoming Americans to the app, calling them TikTok refugees.
What's next: TikTok CEO Shou Zi Chew plans to attend President-elect Trump's inauguration on Monday.
- Trump appears to be trying to save the app despite pushing for a ban during his first term.