Possible US TikTok ban worries advertisers

Yesterday (23 March), TikTok CEO Shou Zi Chew faced four-and-a-half hours of questioning at a US congressional hearing that wished to assess whether the short-form video app is a national security threat.

Criticism of TikTok from both Republicans and Democrats were ‘stark’, according to the BBC.

The US government believes that Chinese TikTok owner ByteDance’s access to American peoples’ data is worrisome. The politicians raised concerns over the idea that if data – which is used for advertising purposes – can be accessed by TikTok engineers in China, can the Chinese government also access the information?

In response, Chew touched on ‘Project Texas’, a proposed initiative that will see US data over-watched by American company Oracle. However, the CEO soon revealed that the scheme is not fully operational.

Prior to the hearing, advertisers asked for assurances from the short-form video app. According to Reuters, at least one major ad group contacted TikTok sales representatives earlier this week in an attempt to learn more about its data security practices.


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A TikTok spokesperson told Reuters that the company engaged with advertisers “in open, fact-based, and ongoing dialogue that includes providing regular updates and addressing questions about the ways we’re working to build a trusted entertainment platform for users and brands.”

Some smaller brands have expressed hesitancy with regards to experimenting with ads on TikTok. New Engen vice president of media services, Adam Telian, told Reuters: “People are hesitant to make that commitment and investment at a time when they’re not sure TikTok will still be around.”

At the hearing yesterday, Chew concluded: “There are more than 150 million Americans who love our platform, and we know we have a responsibility to protect them.”

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