Who Controls TikTok Right Now?

TikTok, the app that has taken the world by storm, seems to be everywhere—from viral dance challenges to political debates. Yet, behind the fun and viral trends, the question of who really controls TikTok remains one of the most hotly debated issues of our time. Is it an independent company or a puppet of a larger force? Who pulls the strings behind the scenes? And most importantly, why does it matter so much?

The answer to this question is far from simple and lies in a tangled web of global politics, economics, and corporate power struggles. In this article, we'll dig deep into TikTok's ownership, management structure, and the various players who wield influence over the app that has captivated the attention of millions.

The Birth of TikTok and ByteDance

To understand the current situation, we first need to look back at how TikTok came into existence. TikTok is owned by ByteDance, a Chinese tech giant founded by Zhang Yiming in 2012. Initially, ByteDance focused on developing AI-based content platforms in China, but by 2016, they launched a short-form video app called Douyin for the Chinese market.

Douyin quickly became a massive success in China, which inspired ByteDance to develop an international version of the app—TikTok—which was launched in 2017. Within a year, ByteDance acquired Musical.ly, another short-form video platform that was popular in the U.S. market. This acquisition merged Musical.ly with TikTok, and the app's growth exploded, particularly among younger users in the United States, Europe, and beyond.

TikTok's International Success vs. Ownership Concerns

As TikTok became one of the most downloaded apps in the world, its meteoric rise led to growing concerns about its ownership. Why does it matter who owns TikTok? The answer lies in the app’s ties to China, and in particular, concerns about data privacy, content control, and the potential influence of the Chinese government.

In China, companies like ByteDance are required by law to cooperate with the government on data-sharing and censorship requests. This led many to believe that TikTok might pose a security risk, especially in countries like the United States, where privacy and national security are significant issues.

In 2020, these concerns escalated when the Trump administration tried to force ByteDance to sell its U.S. operations. At that time, Trump’s team argued that the Chinese government could potentially access TikTok’s user data, which might be used for surveillance or other nefarious purposes.

While ByteDance consistently denied these claims, insisting that TikTok’s data is stored outside of China (mainly in the U.S. and Singapore), the pressure was immense. TikTok had to defend its operations while also figuring out how to distance itself from Chinese control without severing ties with its parent company.

The Attempted Sale to Oracle and Walmart

In response to U.S. government pressure, ByteDance attempted to resolve the issue by selling a stake in TikTok’s U.S. operations to Oracle and Walmart. A deal was close to being finalized in late 2020, which would have seen Oracle become TikTok’s "trusted technology partner" in the U.S., handling the app’s data and ensuring compliance with local regulations.

However, the deal never came to fruition. After the Biden administration took office in early 2021, the focus on TikTok’s ownership and data security shifted somewhat. The new administration was less focused on forcing a sale and more interested in working out regulatory solutions to address the concerns.

The Role of CEO Shou Zi Chew

In the midst of this chaos, TikTok appointed Shou Zi Chew as its CEO in May 2021. Chew, a former executive at ByteDance and Xiaomi, took the reins as TikTok's global leader, with a mission to navigate the complex waters of international politics, data security concerns, and ongoing regulatory scrutiny.

Chew’s role has been critical in shaping TikTok’s image as a global company rather than a Chinese one. Under his leadership, TikTok has made significant efforts to improve transparency, particularly regarding its data handling practices. They’ve opened Transparency Centers where regulators can inspect their data practices and have committed to moving user data storage out of China.

Despite these efforts, Chew’s appointment has not fully dispelled concerns. Many believe that TikTok is still ultimately under the influence of ByteDance and, by extension, the Chinese government.

ByteDance's Ownership Structure: A Complex Puzzle

At the heart of this ongoing debate is ByteDance’s ownership structure, which is more complicated than most tech companies. ByteDance is privately held, but its ownership is split between several key groups:

1. Founders and Early Investors: Zhang Yiming and other early investors like Sequoia Capital hold significant stakes in ByteDance.
2. Global Investors: ByteDance has attracted investment from various global players, including U.S.-based firms like General Atlantic and KKR. This international backing has complicated the argument that ByteDance is solely a Chinese-controlled company.
3. Chinese Investors: ByteDance also has Chinese institutional investors, and Chinese government-backed entities hold small stakes in some of ByteDance’s domestic operations.

While ByteDance operates multiple businesses, its ownership structure has often blurred the lines between its global and Chinese operations. This has fueled speculation that even if TikTok is managed outside of China, ByteDance’s Chinese connections still give Beijing leverage over the app.

The U.S. and EU’s Continued Scrutiny

As of 2024, the scrutiny on TikTok is far from over. In the United States, lawmakers continue to raise concerns about the app’s potential threat to national security. Several states have banned TikTok from government devices, and some members of Congress have even called for a complete ban of the app in the U.S. market.

Similarly, in the European Union, regulatory bodies are closely examining TikTok’s compliance with the GDPR (General Data Protection Regulation) and other data privacy laws. The EU has taken a tough stance on tech companies’ handling of user data, and TikTok has already faced fines for failing to adequately protect children’s privacy on the platform.

Despite these challenges, TikTok has remained resilient. Its user base continues to grow, and its influence on culture and society shows no signs of slowing down. However, the issue of who controls TikTok, and how much influence external forces—whether Chinese or American—have over it, remains a key point of contention.

The Bigger Picture: Global Politics and Technology

In many ways, the battle over TikTok is part of a larger geopolitical struggle over technology, data, and control. As tech companies increasingly transcend national borders, the question of who owns and controls them becomes more critical. Governments around the world are grappling with the implications of this new reality, where a social media app can wield significant influence over public opinion and culture.

TikTok’s situation is particularly unique because it sits at the crossroads of East and West, straddling the divide between the Chinese and Western tech ecosystems. Its ownership and control structure reflect this complexity, as does the ongoing debate over its future.

What’s Next for TikTok?

As we look to the future, the question of who controls TikTok is likely to remain unresolved. While ByteDance may continue to assert its ownership, political and regulatory pressure from both the U.S. and Europe may push the company to make more significant concessions. Whether through increased transparency, partial ownership sales, or structural changes to TikTok’s governance, one thing is clear: the debate over TikTok’s control is far from over.

Ultimately, TikTok’s story is a reminder of how global power dynamics play out in the digital age. Who controls TikTok is not just about who profits from the app—it’s about who has access to the vast amount of data it collects, who influences the content it displays, and who shapes the experiences of its more than 1 billion users.

The answer to "Who controls TikTok right now?" is both ByteDance and, more subtly, the geopolitical forces that shape the modern tech landscape.