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Rep. Alexandria Ocasio-Cortez's (D-N.Y.) first and only TikTok video has gone viral — and in it, she outlines her case against banning the Chinese-owned social media app as its fate hangs in the balance.

Why it matters: With more than 150 million monthly active users in the U.S., TikTok is one of the most popular smartphone apps in the country. Lawmakers are pressing forward with bipartisan efforts to facilitate a ban in the U.S. amid scrutiny surrounding the firm's relationship with the Chinese government. 

State of play: Critics have highlighted the fact that Chinese law requires China's companies to share information with the government.

TikTok has repeatedly said it operates independently and works with Oracle to ensure its algorithms and content moderation models aren't manipulated by Chinese authorities.

What she's saying: The video begins with Ocasio-Cortez listing concerns about Chinese surveillance. She then says that the discussion "doesn't really address the core of the issue, which is the fact that major social media companies are allowed to collect troves of people's personal data."

Adding that the U.S. is one of the "only developed nations in the world" without data privacy protection laws, she argues that the solution is not to ban an individual company but to "actually protect Americans from this kind of egregious data harvesting that companies can do without your significant ability to say no."

She also pointed out that the U.S. has never banned a social media company from operating within its borders, and that Congress hasn't received a classified briefing on potential risks even though that's protocol when it comes to national security issues.

"This case needs to be made to the public," she says. "Our first priority should be in protecting your ability to exist without social media companies harvesting and commodifying every single piece of data about you without you and without your consent."

The big picture: Ocasio-Cortez is one of several progressive members of Congress mounting a defense of the app. Her video garnered over 2.2 million views in 15 hours.

Rep. Jamaal Bowman (D-N.Y.) has similarly raised concern about banning a hugely popular app without more information.

TikTok CEO Shou Zi Chew, who faced a public grilling in a congressional hearing this week, has said that a ban would not provide any more protection than TikTok's current plan, which makes U.S. user data accessible only via Oracle Cloud and the firm's American data security team.

Go deeper: TikTok's fate may be decided by the courts

TikTok's fate may be decided by the courts

AOC goes viral on TikTok with video against banning app

The solution is not to ban an individual company, she says in the video, which gained over 2.2 million views in 15 hours.

Photo of Alexandria Ocasio-Cortez in a pink coat standing outside the U.S. Capitol

Rep. Alexandria Ocasio-Cortez attends a news conference outside the U.S. Capitol on Jan. 26, 2023. Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images

Alexandria Ocasio-Cortez

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Surveillance

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President Biden has made the COVID-19 crisis and a post-Trump return to national unity and traditional democratic ideals his top priorities. From vaccinations to stimulus to schools, Biden is seeking bipartisan compromise while showing a willingness to use executive authority and bare Democratic majorities in the U.S. House and Senate to implement his policies. Republican leaders are navigating deep party divisions over if and how to move beyond former President Trump.

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After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

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From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

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China is becoming the most formidable rival America has faced, and the risk of confrontation with Russia, North Korea or Iran still looms. Authoritarians are rising, the chaotic Afghanistan exit revealed the limits of U.S. power, and the pandemic, climate change and other critical challenges continue to pose grave threats.

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TikTok's future in the U.S. is most likely to be determined by the courts, rather than by politicians, executives or influencers.

Driving the news: Congress gave the social media company no quarter yesterday, in a four-hour hearing that mostly vacillated between moral panic and red scare.

CEO Shou Zi Chew seemed unable to persuade anyone that Project Texas, the Oracle-enabled data ringfencing effort, would solve U.S. data security concerns. 

He also bricked a couple of layups, and hewed to congeniality in the face of being called a liar and told that there wasn't remaining time for responses to questions.

What comes next: The upshot was bipartisan agreement that TikTok must be bought or banned. So let's play that out...

Parent company ByteDance is 60% owned by outside investors, including many U.S.-based venture capital firms. Its Chinese co-founders own another 20%, while the remainder is employee equity.

At TikTok's estimated value of up to $50 billion, a buyer would need just $10 billion to buy out the founders (who have voting control). That allows for a decent-sized universe of strategic suitors, including Oracle. 

But there may still be political objections to any shareholding by Chinese residents, including TikTok employees. Sure, it's absurd and ignores how other U.S. tech companies have employees in China. But we're talking about Congress, so that's table stakes. You'd likely need a bit more cash, and an IPO becomes less likely.

It's also worth noting that TikTok U.S. is just one piece of ByteDance, and currently an unprofitable one at that. ByteDance's founders might be willing to roll the dice, comforted by earnings from the rest of their empire.

This is where it gets really tricky. Imagine that Oracle makes a takeover offer so rich that ByteDance's founders can't refuse. Maybe it even throws in some of Larry Ellison's magic immortality beans.

The Chinese government could simply say no, perhaps using a 2020 law designed to protect intellectual property. Perhaps Beijing really does want all that user data, or just doesn't want to publicly capitulate to Washington. The reason is less important than the ruling. 

Some House members yesterday argued that China's ability to block a merger is evidence that ByteDance is controlled by the CCP, but it's really just evidence that a country can act in its perceived national interest to block divestitures (the U.S. government has similar abilities, albeit with much more of an adversarial legal process).

So now TikTok is in a position where the U.S. government insists it be sold or banned, but China won't allow it. 

Its only option, short of shutting down or praying for the political storm to pass, is to fight the ban demand in court.

And there is some precedent here. Back when former President Trump tried to ban TikTok, the company sued and won. 

President Biden may have a stronger case this time, and one backstopped by a new law Congress is on the verge of passing, but the final venue remains the same.

The bottom line: TikTok isn't going away any time soon, nor is it likely to have a new owner. But a lot of lawyers will be kept very busy. 

TikTok isn't going away any time soon, nor is it likely to have a new owner. But lawyers will be kept busy.

Illustration of the US Capitol dome piercing a smart phone. The Capitol has pink and blue strokes in the colors and style of Tik Tok's logo.

TikTok

Codebook

Axios Codebook

A member of a key government oversight board is pushing lawmakers to make reforms to an instrumental intelligence community surveillance power before it's potentially reauthorized this year.

Why it matters: Travis LeBlanc is the first Privacy and Civil Liberties Oversight Board (PCLOB) member to publicly comment on this year's reauthorization fight over Section 702 of the Foreign Intelligence Surveillance Act.

PCLOB conducts oversight of privacy and surveillance matters involved in the government's counterterrorism efforts, such as FISA Section 702.

Lawmakers, government officials and advocates often rely on the board's insights to makes decisions during high-stakes Washington surveillance debates.

What they're saying: "Given what I have seen and what I know, I do have several concerns about a clean reauthorization without significant, common-sense reforms to safeguard privacy and civil liberties," LeBlanc said Monday during the State of the Net conference in Washington.

The big picture: Section 702 is on the chopping block as Congress stares down a reauthorization deadline at the end of the year.

The authority allows intelligence agencies to conduct warrantless surveillance of non-American citizens outside the U.S.

But Americans' digital communications with non-U.S. people overseas often get swept up in the collection process, and all of the data is stored in a searchable law enforcement database for several years after.

State of play: A group of House Republicans is already considering letting the surveillance authority disappear entirely, Politico reported last week.

Jake Sullivan, national security adviser at the White House, released a statement last week pushing Congress to reauthorize the "vital intelligence collection authority."

Meanwhile, the ACLU has issued an online petition calling on lawmakers to let Section 702 expire.

Details: LeBlanc reiterated previous PCLOB recommendations that the intelligence community develop a methodology for when it conducts surveillance and release details about how many U.S. persons' communications are incidentally collected during the process.

LeBlanc also said it might be better if law enforcement agencies are required to get a warrant before searching Section 702 databases for information about U.S. citizens.

What's next: PCLOB is expected to release a report later in the year detailing recommendations for how Congress and the intelligence community can better balance privacy rights into the 702 program, LeBlanc said.

Sign up for Axios’ cybersecurity newsletter Codebook here.

Privacy leader calls for government surveillance program reforms

Section 702 is set to expire at the end of the year if Congress doesn't reauthorize the program.

Image of PCLOB member Travis LeBlanc testifying before Congress

Travis LeBlanc, a member of the Privacy and Civil Liberties Oversight Board, testifying before the Senate Judiciary Committee. Photo: Zach Gibson/Getty Images

Cybersecurity

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The House Foreign Affairs Committee voted Wednesday to advance a bill that would allow President Joe Biden to ban TikTok from the United States, despite objections that the bill is too broad.

Driving the news: Rep. Michael McCaul (R-Texas) introduced the Deterring America's Technological Adversaries Act last week, and fast-tracked it to a committee vote. It passed 24-16, per Reuters.

TikTok has been under constant scrutiny due to having a Beijing-based owner, ByteDance, though the company has repeatedly sought to assure its independence from the Chinese government and the privacy of U.S. user data.

How it works: The bill instructs Biden to impose penalties, including a possible ban, if the administration finds TikTok knowingly transferred TikTok user data to "any foreign person" associated with the Chinese government.

It also calls for sanctions if the administration finds TikTok, ByteDance or other "related entities" are found to have helped the Chinese government with surveillance, hacking or censorship.

Democrats on the committee were largely opposed. The American Civil Liberties Union said the bill would violate free speech rights.

The big picture: Lawmakers on both sides of the aisle want to appear tough on China and have said they are worried about the Chinese government having influence over TikTok or having access to U.S. user data. 

The U.S., Canada and the European Union have all banned TikTok from government-owned devices.

What they're saying: "A U.S. ban on TikTok is a ban on the export of American culture and values to the billion-plus people who use our service worldwide," Brooke Oberwetter, a TikTok spokesperson, said in a statement.

 "We're disappointed to see this rushed piece of legislation move forward, despite its considerable negative impact on the free speech rights of millions of Americans who use and love TikTok."

Be smart: One bill passing out of one committee is far from a U.S. TikTok ban becoming federal law. 

But momentum is on TikTok opponents' side, and the company has a reason to be spooked.

House panel advances bill that could ban TikTok

The House took a step toward a TikTok ban, but it's far from becoming law.

TikTok's icon with an American flag in the background

Photo: PFOTO/Future Publishing via Getty Images

Sen. Michael Bennet (D-Colo.) wrote to Google and Apple on Thursday, urging both companies to remove TikTok from their app stores.

Driving the news: In a letter addressed to Apple CEO Tim Cook and Google CEO Sundar Pichai, Bennet urges both leaders to boot TikTok immediately, calling the popular video-sharing app "an unacceptable threat to the national security of the United States."

Why it matters: Bennet's letter marks the first time a member of Congress has suggested TikTok, owned by Chinese company ByteDance, should not be available for download via the Google Play or Apple App store.

What they're saying: "No company subject to [Chinese Communist Party] dictates should have the power to accumulate such extensive data on the American people or curate content to nearly a third of our population," Bennet wrote in the letter. 

The big picture: TikTok is under immense pressure in Washington. As it awaits a government-approved security deal, states across the country have banned the app on government devices and on college WiFi networks, and members of Congress have introduced bills to ban the app entirely.

TikTok has said efforts to ban the app in the U.S. are misguided and that China cannot access American users' data.

Senator urges Apple, Google to remove TikTok from app stores

It's the first time a member of Congress has asked tech companies to boot TikTok.

Illustration of a finger about to delete the TikTok app

Maine becomes latest state to ban TikTok on government devices

Maine is joining at least 20 other states in banning the popular social media platform.

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The Senate voted unanimously Wednesday to pass a bill that would ban TikTok on government-issued devices.

Why it matters: A growing number of states have barred state employees and contractors from using the popular social media app on government devices in recent weeks amid FBI warnings about the possibility of surveillance and "influence operations" by the Chinese government.

Treasury Secretary Janet Yellen last month said the app presents "legitimate national security concerns" to the U.S. 

Meanwhile, one of the five commissioners at the Federal Communications Commission has called for a national TikTok ban entirely.

The big picture: TikTok is owned by the Chinese company Bytedance, which is largely subject to China's government, given the country's party-state system.

TikTok itself doesn't operate inside China, however, and the company doesn't store U.S. user data in China.

Oracle began vetting TikTok's algorithms and content moderation models earlier this year to ensure they aren't manipulated by Chinese authorities.

Worth noting: TikTok is working to reach an agreement with the Council on Foreign Investment in the U.S., an interagency committee that reviews certain transactions involving foreign investment to account for national security concerns, to determine whether the firm can be divested to an American company and remain operational in the U.S.

What's next: The legislation led by Sen. Josh Hawley (R-Mo.) now heads to the House.

Editor's note: This story has been corrected to say that Sen. Josh Hawley is leading the legislation, not Sen. Marco Rubio.

Senate passes bill to ban TikTok on government devices

The FBI has warned about the possibility of surveillance and "influence operations" by China's government.

The icon of the TikTok app. Photo: Fabian Sommer/picture alliance via Getty Images

Indiana Attorney General Todd Rokita (R) announced Wednesday that he is suing TikTok for allegedly failing to protect children from mature content and deceiving users about the Chinese government's ability to access their data.

Why it matters: None of the allegations are new to TikTok, which is owned by the Chinese company Bytedance. The platform, like its peers, has faced heightened scrutiny in recent years amid growing concern over social media apps' influence on children and adolescents.

For the record: TikTok chief pperating officer Vanessa Pappas testified at a Senate hearing in September that the company doesn’t store U.S. user data in China and doesn’t share any with Bytedance.

Detail: The first lawsuit alleges that TikTok pushes "salacious and inappropriate content to all young U.S. users 13 and up for unlimited periods of time, day and night, in an effort to line TikTok’s pockets with billions of dollars from U.S. consumers."

The state claims that TikTok presents its platform as safe and appropriate for users between the ages of 13 and 17 but actually allows and recommends searches for mature content, such as posts with "intense" sexual themes or drug references.

"In light of this abundant and serious sexual content and mature or suggestive themes, TikTok misleads and deceives Indiana consumers by choosing 'infrequent/mild' to describe the quantity and nature of these types of material," the lawsuit argues. 

The second lawsuit accuses TikTok of misleading consumers about the risk of the Chinese government accessing and exploiting their data, echoing the FBI's warnings about the platform.

What they're saying: "The TikTok app is a malicious and menacing threat unleashed on unsuspecting Indiana consumers by a Chinese company that knows full well the harms it inflicts on users," Rokita said in a statement. 

"At the very least, the company owes consumers the truth about the age-appropriateness of its content and the insecurity of the data it collects on users," Rokita added.

"With this pair of lawsuits, we hope to force TikTok to stop its false, deceptive and misleading practices, which violate Indiana law."

The other side: TikTok spokesperson Brooke Oberwetter declined to comment on the lawsuit, but said in a statement that "the safety, privacy and security of our community is our top priority."

"We build youth well-being into our policies, limit features by age, empower parents with tools and resources, and continue to invest in new ways to enjoy content based on age-appropriateness or family comfort," Oberwetter added.

"We are also confident that we're on a path in our negotiations with the U.S. Government to fully satisfy all reasonable U.S. national security concerns, and we have already made significant strides toward implementing those solutions."

The big picture: TikTok has moved to shore up protections for youth since it agreed to a $5.7 million settlement with the U.S. Federal Trade Commission in 2019 over allegations of illegally collecting personal data from children.

Worth noting: In May, a bipartisan group of attorneys general announced a probe into whether TikTok is hurting children and teens' mental health.

Go deeper: Texas becomes latest state to ban TikTok on government devices

Editor's note: This article has been updated with comment from TikTok spokesperson Brooke Oberwetter.

Indiana attorney general sues TikTok over child safety, data privacy concerns

TikTok "owes consumers the truth about the age-appropriateness of its content and the insecurity of the data it collects on users."

Photo of a phone displaying the TikTok app on Apple's App Store

The TikTok app as sen on the Apple app store on July 18, 2021. Photo: Jakub Porzycki/NurPhoto via Getty Images

A growing number of GOP-led states are barring state employees and contractors from using TikTok on government-issued devices as the FBI warns of possible threats to national security posed by the Chinese-owned social media platform.

Driving the news: Texas became the latest to do so on Wednesday, joining South Dakota, South Carolina and Maryland, all of which banned the app on government devices in the past week. Wisconsin Republicans are urging their Democratic governor to do the same.

What they're saying: "[U]nder China’s 2017 National Intelligence Law, all businesses are required to assist China in intelligence work including data sharing, and TikTok’s algorithm has already censored topics politically sensitive to the Chinese Communist Party," Texas Gov. Greg Abbott said in a letter to state officials Wednesday.

"There may be no greater threat to our personal safety and our national security than the cyber vulnerabilities that support our daily lives," Maryland Gov. Larry Hogan, whose directive also banned certain Russia-based platforms, said in a statement.

"Protecting our State’s critical cyber infrastructure from foreign and domestic threats is key to ensuring the health, safety, and well-being of our citizens and businesses," South Carolina Gov. Henry McMaster wrote in a letter requesting that the state's Department of Administration block access to the app.

"South Dakota will have no part in the intelligence gathering operations of nations who hate us," South Dakota Gov. Kristi Noem said in a press release.

Why it matters: TikTok is owned by the Chinese company Bytedance, which is largely subject to the Chinese government given the country's party-state system.

As a result, the Chinese government can access the key to the app's recommendation algorithm and collect user data if it wants to, according to FBI Director Chris Wray.

Yes, but: TikTok doesn't operate inside China. ByteDance instead offers a similar version of the app to Chinese customers.

TikTok Chief Operating Officer Vanessa Pappas testified at a Senate hearing in September that the company doesn't store U.S. user data in China and doesn't share any with Bytedance. 

Oracle also began vetting TikTok's algorithms and content moderation models earlier this year to ensure they aren't manipulated by Chinese authorities.

The big picture: TikTok has nevertheless faced growing opposition from officials in both U.S. parties.

Leaders on the Senate Intelligence Committee asked the Federal Trade Commission in July to investigate TikTok's data practices and corporate governance.

Nebraska Gov. Pete Ricketts (R) blocked TikTok on all state electronic devices in August 2020. 

The U.S. Army has also banned the app on government-owned phones.

Texas becomes latest state to ban TikTok on government devices

The FBI has warned of possible threats posed by the Chinese-owned social media platform.

Photo of a thumb clicking on the TikTok app logo as shown on a phone screen

 The TikTok logo as shown on a smartphone on July 11, 2022. Photo: Marijan Murat/picture alliance via Getty Images

Mozilla is looking for new forms of revenue apart from its privacy-focused Firefox, as it urges Big Tech companies to stop pushing their browsers on users. 

Driving the news: Mozilla launched a $35 million venture fund for "responsible tech," the company announced Wednesday at the Web Summit conference in Lisbon, Portugal. 

How it works: The fund is for early stage startups (up to series A) that "advance one or more of the values in the Mozilla Manifesto," which include privacy, inclusion and human dignity.

The initial $35 million will go to internet companies that are privacy-forward and use "trustworthy" AI.

Mozilla's first investments include a social media app with advanced safety features, a platform for patient data and medical collaboration, and a password management solution.

What they're saying: “Many people say the tech industry has lost its soul. Some even say it’s impossible to make it better. My response: We won’t know unless we try, together," Mark Surman, executive director of Mozilla, said in a release. 

"Mozilla Ventures is about fueling companies and products that put people before profits. And it's about fueling enough of these companies and products that we can ultimately push the internet in a better direction."

"We want to support founders who are working on the many challenges we face online — from misinformation to censorship, security to privacy, and the ability to harm instantaneously and at scale," said the fund's managing partner, Mohamed Nanabhay, in the release.

Be smart: Mozilla wants to make money on top of funding responsible startups. That initial money, Mozilla notes in the release, will go to companies that "have big potential for commercial success."

Mozilla released a report in September calling out Google, Apple and Microsoft for making their own browsers the default option on their platforms, and making it difficult for users to switch to an alternative like Firefox.

Mozilla launches $35 million venture fund

Mozilla is looking for new revenue as it urges Big Tech companies to stop defaulting their own browsers.

Photo Illustration: Thiago Prudencio/SOPA Images/LightRocket via Getty Images

Firefox

California's new law aimed at improving online privacy and safety for children  has the industry on edge and critics warning of disruptions to the internet — but advocates say most users won't see big changes.

Why it matters: The California law mirrors a U.K. standard that prompted some changes by Big Tech companies but did not drastically alter the online landscape.

Driving the news The bipartisan California Age Appropriate Design Code Act, signed into law by Gov. Gavin Newsom on Thursday, requires online platforms to consider the best interest of users under 18 when designing their services.

Sites that are likely to be accessed by children and teens will be prohibited from using their personal information, collecting location data or profiling them by default.

 Websites and apps must estimate the range of age of their user population to determine whether they are likely to be accessed by teens and kids, and implement measures to protect those users.

What's happening: The age estimation requirement has sparked an outcry that the law will alter how users navigate the web by forcing them to prove their age before accessing a site.

This could mean websites or apps will require users to upload government IDs or require facial scans to prove ages, Eric Goldman, a law professor at Santa Clara University Law School and critic of the measure, told Axios.

He called the law a "neutron bomb" for the internet and said it will lead to more invasive practices under the guise of protecting children.

"This is not just going to affect kids — it affects every user, adult or kid," Goldman told Axios. "We all are going to have to relearn how to use the internet."

Yes, but: Instagram, YouTube, Meta and TikTok made changes to their services to make teenage users' experiences more private and safer ahead of the U.K.'s Age Appropriate Design Code taking effect last year.

Instagram in August announced it would put all new users under 16 into its most restrictive content setting and prompt existing users in that age group to apply that setting, which aims to limit access to sensitive content.

A Meta spokesperson called the California law an "important development" but noted the company still has concerns about some of the provisions.

"We believe young people should have consistent protections across all apps and online services they use, which is why we support clear industry standards in this area," the Meta spokesperson said in a statement. 

Tech industry association TechNet opposes the measure, in part because lawmakers did not agree to lower the age threshold to under 16, Dylan Hoffman, TechNet executive director for California and the Southwest, told Axios.

He predicted companies will vary in how they implement the age estimation requirement.

"Maybe the worst case scenario is requiring additional personal information in order to verify you are as old as you say you are," Hoffman said. "But I think also just as concerning is what type of barriers it's putting in place to the openness of the internet, not just for kids but adults, too. "

The other side: Supporters say the age estimation requirement doesn't mean users will have to share their ages, and that sites that are already collecting data likely know the age of their users.

"If your website is safe for everyone, you don't have to age estimate," Nichole Rocha, head of U.S. Affairs for 5Rights Foundation, a supporter of the legislation, told Axios.

"But if there are data processing practices that could result in harm to kids, you would be expected to do an impact assessment and figure out how you can mitigate the risk to users."

California's new age rules for sites and apps raise a ruckus

The state's new law aims to protect kids and teens online from privacy violations and safety risks.

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Senate passes bill to ban TikTok on government devices

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