In a news conference, President Trump suggested that multiple bidders are interested, stating, “There’s great interest in TikTok” and indicating that a competitive bidding process could be on the horizon. The comments come as the app faces ongoing regulatory pressure in the US due to national security concerns.

TikTok, which has around 170 million users in the US, was briefly taken offline earlier this month after a law came into effect requiring ByteDance to either sell its American operations or face an outright ban. However, President Trump intervened by signing an executive order delaying the enforcement of this law by 75 days, allowing negotiations to continue. Microsoft has yet to comment publicly on the talks, while TikTok and ByteDance have also remained silent on the latest developments.

This isn’t the first time Microsoft has been in the frame to acquire TikTok. Back in 2020, the company was one of the leading contenders when Trump, during his first term, sought to force a sale of TikTok’s US operations due to national security concerns. At that time, Oracle and Walmart were also involved in negotiations, though no deal was ultimately reached. Now, with Trump back in office, Microsoft has once again emerged as a potential buyer.

Other parties are also making moves. AI startup Perplexity AI has reportedly submitted a revised bid to merge with TikTok in a deal that would give the US government up to 50 percent ownership of the newly formed entity. Under the latest proposal, the US government would receive its stake following an initial public offering (IPO) valued at a minimum of $300 billion. Perplexity has revised its offer based on feedback from the Trump administration, suggesting the White House is actively involved in shaping potential acquisition deals.

Trump has previously floated the idea of other high profile bidders, including Tesla CEO Elon Musk and Oracle Chairman Larry Ellison taking over TikTok. However, Musk has yet to publicly express any interest, while Oracle’s role remains unclear. Trump recently told reporters, “I’ve spoken to many people about TikTok, but not with Oracle.” Meanwhile, billionaire Frank McCourt has also made a formal offer for the platform.

The next 30 days could be pivotal for TikTok’s future in the US, with Trump indicating that discussions are ongoing, and a decision is expected soon. With national security concerns cited as being at the heart of the issue, ByteDance remains under pressure to divest its American operations. Whether Microsoft, Perplexity AI, or another bidder ultimately secures control remains to be seen, but the stage is set for a high stakes battle over one of the world’s most influential social media platforms.

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Romania’s Constitutional Court has annulled the first round of its presidential election due to allegations of Russian interference via TikTok.

The post TikTok Interference Annuls Romanian Elections appeared first on Quayside Technical Services.

Understanding the Legislation

This decision to reject TikTok’s appeal against the original decision of the court intensifies the ongoing debate over national security concerns and the influence of foreign owned applications on American users.

What Law?

The law in question, known as the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), was signed into law by President Joe Biden on 24th April 2024. PAFACA aims to prevent foreign adversaries from accessing sensitive data of US citizens through software applications under their control. Specifically, it requires companies like ByteDance to either divest their ownership in applications operating within the United States or cease operations entirely.

The legislation actually identifies ByteDance and TikTok by name, thereby reflecting bipartisan concerns in the US over potential national security threats posed by foreign controlled apps, in this case a Chinese app.

The Key Fears Behind The Law

Essentially, the PAFACA legislation that TikTok has fallen foul of stems from concerns in the US that the Chinese government could exploit TikTok to gather data on American users or manipulate content to influence public opinion.

Dating back to the previous Trump presidency, US officials have expressed fears that TikTok’s extensive data collection practices could provide the Chinese Communist Party with access to sensitive personal information, thereby potentially posing a significant national security risk.

The fear is that ByteDance’s ties to China could make TikTok susceptible to coercion by the Chinese government, potentially leading to espionage or propaganda dissemination.

These concerns have been compounded by China’s national security laws, which could compel Chinese companies to share data with the government upon request.

TikTok Owned By A Chinese Company

TikTok, with over 170 million users in the United States, has become a focal point of this legislation due to its ownership by Chinese company ByteDance. Despite TikTok’s assertions that it operates independently and stores US user data on servers located outside of China, lawmakers clearly remain unconvinced.

Events Leading to the Original Ban Decision

The journey towards this latest legislative action began during the first Trump administration, which attempted to ban TikTok in 2020, citing national security concerns. However, these efforts were stalled by legal challenges, and the ban was never fully implemented. Under the Biden administration, scrutiny of TikTok persisted, culminating in the enactment of PAFACA in April 2024. Following the law’s passage, TikTok and ByteDance filed a lawsuit challenging its constitutionality, arguing that it infringed upon the free speech rights of American users and amounted to an unconstitutional bill of attainder.

Appeals Court Ruling

However, on 6th December 2024, the US Court of Appeals for the District of Columbia Circuit unanimously upheld the law, rejecting TikTok’s arguments. The court stated that the legislation was “carefully crafted to deal only with control by a foreign adversary” and was part of a broader effort to counter a “well-substantiated national security threat posed by the PRC (People’s Republic of China).” The ruling emphasised that the government’s concerns about potential data access and content manipulation by the Chinese government were persuasive and justified the law’s enactment.

The Implications for TikTok and the Social Media Landscape

The appeals court’s decision now places TikTok at a real crossroads. If ByteDance doesn’t sell TikTok by the 19th January 2025 deadline, TikTok will face a ban in the US anyway. This scenario will, of course, lead to significant upheaval in the social media market. For example, competitors like Meta’s Instagram, Google’s YouTube, and Snap’s Snapchat may stand to benefit from TikTok’s potential absence, as users and content creators seek alternative platforms. However, replicating TikTok’s unique algorithm and user experience also presents challenges, and a ban could disrupt the livelihoods of many content creators and small businesses that rely on the platform.

What has TikTok Said?

In response to this latest ruling, ByteDance has announced plans to appeal again, this time to the US Supreme Court, asserting that the law is based on “inaccurate, flawed, and hypothetical information” and that a ban would essentially censor US citizens. The company expressed hope that the Supreme Court would protect Americans’ right to free speech in this significant constitutional matter.

Complicated By Politics

The political landscape adds another layer of complexity. President elect Donald Trump, who is set to be inaugurated on 20th January 2025, has previously indicated opposition to a TikTok ban, despite attempting to implement one during his first term. It, therefore, remains unclear whether he will act to prevent the ban from taking effect, but any intervention would require navigating strong bipartisan concerns in Congress regarding national security and foreign influence.

What Does This Mean For Your Business?

The battle over TikTok highlights the challenges of trying to balance national security concerns with protecting free speech and supporting businesses in today’s connected digital world. The US government’s demand for ByteDance to sell TikTok reflects growing fears about foreign controlled technology companies, particularly those linked to China. At the same time, TikTok’s importance to millions of users and businesses can’t be ignored, thereby creating a complex situation with no easy answers.

The court’s decision to uphold the law signals that the US is now willing to take strong action to limit foreign influence in technology, even if it disrupts the market and affects consumers. If TikTok’s appeal to the Supreme Court fails, its potential ban in the US could create some major changes in social media. While rivals like Meta and YouTube may benefit, recreating TikTok’s unique algorithm and appeal won’t be simple. Many creators and small businesses that depend on TikTok could face serious challenges if the platform disappears.

For businesses that have embraced TikTok as a key part of their marketing and outreach strategies, this development could be highly disruptive. TikTok’s sophisticated algorithm has enabled brands to target audiences with unmatched precision, driving engagement and sales in ways other platforms struggle to replicate. A ban could leave businesses scrambling to find alternative platforms, many of which lack the same audience reach or content features that make TikTok so effective.

Small businesses, in particular, may feel the strain, as many have used TikTok to build their brand visibility with limited budgets. Losing access to the platform would mean rethinking marketing strategies, potentially investing in new campaigns, and navigating unfamiliar tools. This could also lead to increased competition on other platforms, driving up advertising costs as businesses flock to alternatives like Instagram Reels, YouTube Shorts, and Snapchat.

However, the situation highlights the importance of diversification. Businesses reliant on TikTok should, if they haven’t already done so, begin exploring other platforms and spreading their efforts to ensure they are less vulnerable to the fate of a single app. A proactive approach could help businesses weather any potential disruptions while positioning them for future growth.

Adding to the uncertainty of TikTok’s future is the recent major change to the political landscape: Trump winning the US election. President elect Donald Trump has said he opposes a TikTok ban, despite trying to implement one during his first term. Whether he will act to prevent the ban when he takes office remains unclear, and he would need to address strong bipartisan concerns in Congress about national security.

This ongoing saga could be viewed as an example of the tension between globalisation and protecting national interests. As the 19th January 2025 deadline nears, the final outcome for TikTok will not only affect its users and creators but could also set a precedent for how governments handle foreign technology in the future.

The post TikTok Loses Appeal Against US Sell or Ban Law appeared first on Quayside Technical Services.

Gatekeepers

Under the EU’s new Digital Markets Act (DMA), ‘gatekeepers’ are large digital platforms that play a pivotal role in the digital economy. They are judged as acting as intermediaries between businesses and users, i.e. controlling key ‘gateways’ through which businesses reach consumers. The DMA, which is aimed at tackling monopolising practices and ensuring fair and open digital markets, sets specific criteria to identify these gatekeepers and imposes obligations and prohibitions on them to prevent anti competitive practices.

Why Booking.com? 

According to the DMA rules, ‘gatekeepers’ are companies within the EU with more than 45 million monthly end users, more than 10,000 business users per year, and a market cap of at least €75 billion.

It seems, therefore, that following a self assessment submitted on 1st March 2024, the EC has decided that the Booking.com travel platform meets the DMA thresholds and, therefore, is now considered to be an “important gateway between businesses and consumers.” 

Thierry Bretton, EU Commissioner for Internal Market, has been reported as saying: “Booking is an important player in the European tourism ecosystem and is now also a designated gatekeeper.” 

What Does This Mean For Booking.com? 

As a gatekeeper, Booking.com now faces specific obligations under the DMA to ensure fair competition and prevent anti competitive practices. These include:

• Data usage restrictions. Booking.com cannot, for example, use data from business users, for example hotels, to compete against them.
• Interoperability. It must allow third parties to interoperate with its services, providing necessary technical access.
• Advertising transparency. Booking.com must offer advertisers and publishers access to performance measurement tools for independent ad verification.
• An anti tying and bundling obligation means no additional services as a condition for accessing its platform.
• Access to data. Booking.com must provide business users with access to the data they generate on the platform.
• Fair treatment. The company can’t favour its own services or products in search rankings over third party offerings.

Practical Implications 

There are also some practical implications for Booking.com, including:

• Operational adjustments which include significant changes to internal operations, data management, and platform functionalities.
• Increased transparency, for example enhanced transparency in ranking, data usage, and advertising charges.
• Additional legal, administrative, and technological expenses to ensure compliance.
• A change to its competitive landscape as the restrictions under the DMA may reduce competitive advantages, levelling the playing field for smaller competitors.
• Increased regulatory scrutiny such as monitoring, plus potential penalties from the European Commission for non compliance.

What Happens If It Doesn’t Comply? 

Booking.com now has six months to comply but if it doesn’t, it could be facing eye watering fines of up to ten percent of its total worldwide annual turnover, increasing to 20 percent for repeat offences. Also, it could face periodic penalties up to five percent of its average daily turnover for specific non compliance issues. To put this in perspective, Booking.com as part of Booking Holdings reported a total worldwide turnover of $21.3 billion in 2023.

It’s understood that Booking.com and other gatekeepers have already started implementing measures to comply with their gatekeeper obligations under the DMA and are required to submit detailed compliance reports to the European Commission. However, other companies, like ByteDance, TikTok’s owner, and Meta, have contested their gatekeeper designations.

Who Are The Other Gatekeepers? 

In addition to the aforementioned ByteDance, Meta, and now Booking.com, other well known gatekeepers include Alphabet (Google), Apple, Amazon, and Microsoft.

Following X’s claim on 1st March 2024 that, despite meeting the thresholds, it doesn’t qualify as an important gateway between businesses and consumers, it’s understood that the European Commission has opened a market investigation to further assess X’s rebuttal.

What Does This Mean For Your Business? 

The designation of Booking.com as a gatekeeper under the EU’s DMA represents another significant shift in the regulatory landscape for large digital platforms. For Booking.com, this means it must adhere to stringent new rules aimed at ensuring fair competition and preventing the misuse of its market power. This could, however, involve substantial operational adjustments.

For competitors and markets, the DMA’s enforcement may lead to a more balanced competitive environment. Smaller businesses and competitors and new entrants may, for example, find it easier to compete if the ‘gatekeepers’ like Booking.com are restricted from engaging in the many possible anti competitive practices, for example data misuse and unfair bundling of services. This could foster greater innovation and diversity in the market, as barriers to entry are lowered and smaller companies gain more opportunities to attract customers.

Consumers are also likely to benefit from the DMA’s regulations. For example, with increased transparency in how services are ranked and advertised, they may be able to make more informed choices. The DMA’s requirement for fair treatment and data access may mean that consumers see a wider variety of options and potentially lower prices as competition increases. Also, enhanced data protection measures could help safeguard consumer information, addressing privacy concerns that have become increasingly prominent in the digital age.

Overall, the implementation of the DMA and the compliance efforts by gatekeepers like Booking.com may signal a transformative period for digital markets. UK businesses operating within these markets should prepare for changes in competitive dynamics and be ready to leverage new opportunities that arise from a potentially more equitable digital ecosystem.

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Some reports indicate that the Chinese Communist Party (CCP) may not be happy that the apps are outside of their control and are pro-democracy media, as well as containing political content such as criticism of the Chinese president and government.

Also, this is likely to be part of the ongoing poor relations, trade wars, and tit for tat responses between China and the US. For example, the US is currently in the process of trying to ban the Chinese company Bytedance’s hugely popular TikTok app in the US due to the company’s alleged links to the Chinese Communist Party and, therefore, the possible threat to US national security.

The post China Orders Removal Of Popular Messaging Apps From iPhone App Store appeared first on Quayside Technical Services.

The Vote  

The unanimous Energy and Commerce Committee vote (50-0) in favour of forcing TikTok’s parent company ByteDance to divest itself or sell the app could see 170 million American users no longer able to use TikTok. There is now a wait to see whether the US Senate approves the measure before it becomes law. The stated purpose of the bill as it stands is to “protect the national security of the United States from the threat posed by foreign adversary controlled applications.” 

Chinese Links 

The worries that ByteDance’s links to the Chinese state make TikTok’s usage in the US a threat to national security date back to the Trump presidency. Back in 2020, then President Donald Trump tried to ban the app but was blocked by the courts. It was part of a wider trade and political war with China which is still ongoing. Other apps with links to China banned by Trump in 2021 include the Ant Group’s Alipay mobile payment app, QQ Wallet, WeChat Pay, CamScanner, SHAREit, Tencent QQ, VMate, published by Alibaba Group subsidiary UCWeb, and Beijing Kingsoft Office Software’s WPS Office.

Bans In Many Countries 

The ban on TikTok was extended to number of other institutions and countries including:

• The European Commission, the UK government, the BBC and the US government banned the TikTok app from staff devices, to protect sensitive personal data, increase cybersecurity, protect against misinformation, and to protect national security.
• In June 2020, India banned TikTok and around 300 other Chinese apps from government devices.
• In 2023, the TikTok app was banned from government devices in Australia and Canada.
• Other countries with a government device TikTok ban also include Taiwan, Ireland, Denmark, and Belgium.

Many may also remember how, in March last year, the CEO of TikTok, Shou Chew, had to appear before the House Energy and Commerce Committee in the US to discuss concerns about TikTok’s consumer privacy, data security practices, its impact on children, and the app’s alleged links to China.

This Time 

This time, however, rather than facing just a government device ban, TikTok is facing a whole country ban. Worse than that, it’s the country with TikTok’s largest audience, with estimates ranging around 113.3 million to 116.5 million users.

The stark choice facing ByteDance is to now either sell the TikTok app within six months, thereby severing alleged links with the Chinese state, or face removal from mobile app stores in the US, effectively wiping out its biggest audience, threatening the app itself.

What Would A Ban Mean? 

Looking at the broader picture, Banning TikTok in the US completely could have a significant impact on several fronts, given the app’s massive user base and economic influence in the country. Some of the potential effects could include:

• Massive user impact (businesses and home users). With millions of active users in the US, a ban would abruptly cut off access for a large community of creators and viewers. It would affect the way people consume and create short form video content, potentially shifting these users to alternative platforms.
• A blow to the creator economy. Many US based content creators rely on TikTok for income through brand partnerships, sponsored content, and the app’s creator fund. A ban could disrupt this economy, affecting the livelihood of thousands of influencers and content creators.
• A significant effect on market competition and innovation. For example, TikTok’s absence could create a vacuum in the social media landscape, encouraging competitors like Instagram Reels, YouTube Shorts, and Snapchat to fill the gap. This could lead to innovations within these platforms as they vie for the TikTok audience.
• Trouble for advertisers. Brands that leverage TikTok for marketing and customer engagement would need to pivot their strategies to other channels. This could reshape digital marketing trends and impact the effectiveness of social media campaigns.
• More regulations. Heightened awareness and concerns over data privacy and security issues related to social media, could lead to more stringent regulations and policies affecting all platforms, not just TikTok.
• Effects on international relations. Given the geopolitical tensions underlying concerns about TikTok’s Chinese ownership, a ban could have diplomatic repercussions, negatively influencing US China relations and possibly affecting American companies operating in China. Some commentators have already suggested we are witnessing a kind of ‘cold war’ with China now anyway, with the US restricting things like microchips and other components in a bid to perhaps stifle the growth of what it sees as a more powerful and growing economy.
• Legal and political ramifications. Implementing a ban would likely involve legal challenges and a complex regulatory process. It could set a precedent for how the US government addresses concerns about foreign owned technology companies in the future.

All in all, therefore, the impact of a TikTok ban in the US would extend well beyond the app itself, affecting the social media ecosystem, the digital economy, and even international relations. However, the specific outcomes would depend on a variety of factors, including how such a ban is implemented and the response from users, creators, businesses, and other stakeholders.

User Revolt Reported In The US 

Not surprisingly, there have been reports in the US of congressmen being inundated with calls from TikTok users objecting to a ban. It’s also been reported that TikTok encouraged its users to call their representative to vote against the measure.

Criticisms 

The vote and proposed ban have led to other criticisms, including that from The American Civil Liberties Union (ACLU) which pointed to the app’s value to many Americans for information and communication, and describing the ban as a “cheap” political point scoring measure in an election year.

What Does TikTok Say? 

TikTok has said on the ‘X’ platform that it amounts to “an outright ban” and that “This legislation will trample the First Amendment rights of 170 million Americans and deprive 5 million small businesses of a platform they rely on to grow and create jobs”. 

What Does This Mean For Your Business? 

The potential total ban of TikTok in the US represents a pivotal moment not only for the app’s parent company, ByteDance, but also for a broad spectrum of stakeholders ranging from individual creators to large corporations. For ByteDance, the forced sale or severance of its largest international market could significantly impact its valuation, strategic direction, and global influence.

The loss of TikTok’s largest market, the US, would not only diminish its advertising revenue but could also deter potential investors and partners concerned about the platform’s stability and future growth prospects.

For businesses and creators that rely on TikTok, the ramifications could be profound. The US, for example, is home to a significant creator economy where individuals and businesses leverage TikTok for brand building, audience engagement, and revenue generation. A ban would necessitate a strategic move to alternative platforms, which may not offer the same level of engagement or demographic reach as TikTok. This could disrupt marketing strategies, content distribution plans, and income streams for countless users.

The competition within the social media landscape would most likely intensify in the wake of a TikTok ban. Rivals such as Instagram Reels, YouTube Shorts, and Snapchat stand to gain the most, absorbing TikTok’s displaced user base, The US may not be too unhappy about US based company apps taking TikTok’s place. This shift could spark a wave of innovation as platforms vie to capture and retain these new audiences, potentially reshaping the social media ecosystem.

From a broader economic perspective, a TikTok ban could have ripple effects beyond well the tech industry. The platform has become an integral part of digital marketing strategies for many businesses of all sizes. The disruption to these strategies could have downstream effects on sales, customer engagement, and brand loyalty across various sectors.

Also, the ban could bring about stricter regulatory scrutiny over social media platforms, leading to increased compliance costs and operational challenges. This heightened regulatory environment could stifle innovation and deter investment in the tech sector, impacting the wider economy.

The implications of a US wide TikTok ban could, therefore, extend way beyond the app itself, affecting the livelihoods of creators, the strategies of businesses, the dynamics of social media competition, and the broader digital and national economies. Stakeholders will now, most likely, closely monitor developments and prepare should the worst happen. TikTok has held firm and denied any Chinese state links before. Nevertheless, the US is making a powerful statement with the unanimous vote and bill proposing a possible total ban which reflects the current strength of resolve in the US. It also reflects their willingness to pile on the pressure in what is also a political battle with what they consider as a major rival.

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The Processing of Personal Data 

The fine, as well as a reprimand, and an order requiring them to bring its data processing into compliance within three months, were issued in relation to how the company processed personal data relating to child users in terms of:

• Some of the TikTok platform settings, such as public by default settings as well as the settings associated with the ‘Family Pairing’ feature.
• Age verification in the registration process.

During its investigation into TikTok, The DPC also looked at transparency information for children. The DPC’s investigation focused on the period from 31st July 2020 to 31st December 2020.

Explained 

Explained in basic terms, TikTok was fined because, according to the DPC’s findings:

• The profile settings for child users accounts being set to public by default meant that anyone, on or off TikTok, could view the content posted by the child user. The DPC said this also posed risks to children under 13 who had gained access TikTok.
• The ‘Family Pairing’ setting allowed a non child user, who couldn’t be verified as the parent or guardian, to pair their account to the child user’s account. The DPC says this enabled non child users to enable direct messages for child users over 16, thereby posing a risk to child users.
• Child users hadn’t been provided with sufficient information transparency.
• The DPC said that TikTok had implemented “dark patterns” by “nudging users towards choosing more privacy intrusive options during the registration process, and when posting videos.” 

TikTok Says

TikTok has been reported as saying that it disagrees with the findings and the level of the fine. TikTok also said: “The criticisms are focused on features and settings that were in place three years ago, and that we made changes to well before the investigation even began, such as setting all under 16 accounts to private by default”.

Fines

This isn’t the first fine for TikTok in relation to this subject. For example, in July 2020, the company was fined $5.7 million by the US Federal Trade Commission (FTC) for collecting data from minors without parental consent. Also, in April this year, TikTok was fined £12.7 million by the ICO for allowing children under 13 to use the platform back in 2020.

The level of TikTok’s most recent fine, however, is not as much as the £1 billion fine issued to Meta in May for mishandling people’s data in transfer between Europe and the US.

Banned In Many Countries

In addition to fines in some of the countries where the TikTok app is allowed, for a mixture of reasons including worries about data privacy for young users, possible links to the Chinese state, incompatibility with some religious laws and some political situations have resulted in TikTok being banned in Somalia, Norway, New Zealand, The Netherlands, India, Denmark, Canada, Belgium, Australia, and Afghanistan.

What Does This Mean For Your Business?

Back in 2020, TikTok was experiencing massive growth as the most downloaded app in the world. It was also the year when former US President Donald Trump issued an executive order aiming to ban TikTok in the United States, plus the year when the platform picked up its first big fine, $5.7 million, from the FTC in the US over collecting data from minors without parental consent.

As pointed out by TikTok, this latest, much larger European fine dates back to issues from around the same time, which TikTok argues it had already addressed before the DPC’s investigation began. This story highlights how important it is to create a safe environment in this digital society for children and young people who are frequent users of the web and particularly social media platforms. This story also highlights how important it is for businesses to pay particular attention to data regulations relating to children and young users. It is also important to review systems and processes with this in mind to ensure maximum efforts are made maintain privacy and safety.

Furthermore, it is also an example of the importance of having regulators with ‘teeth’ that can impose substantial fines and generate bad publicity for non compliance which can help provide the motivation for the big tech companies to take privacy matters more seriously. TikTok’s worries, however, aren’t just related to data privacy issues. Ongoing frosty political relations between China and the west mean that its relationship with the Chinese government is still in question, and this, together with the bans of the app in many countries means it remains under scrutiny, perhaps more than other US based social media platforms.

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What Is The DSA? 

The Digital Services Act is a new EU Law designed to protect users. It applies to any digital company operating and serving the EU with “very large online platforms” (those with over 45 million EU users) and very large search engines are subject to the toughest rules.

The DSA focuses on five key areas of user protection which are:

1. Illegal products. Platforms will need to stop the sale of illegal products.

2. Illegal content. This means that platforms, such as social media platforms, need to take measures stop hate speech, child abuse and harassment, electoral interference and more, whilst safeguarding free speech and data protection.

3. Protection of children. This includes large online platforms and search engines having to take a wide range of measures to protect children, such as protection from being targeted with advertising based on their personal data or cookies, protecting their privacy, redesigning content “recommender systems” to reduce risks to children, and much more.

4. Racial and gender diversity. This means that companies, for example the large social media platforms, can’t target users with adverts based on personal data such as race, gender, and religion.

5. Banning so called “dark patterns.” This means protecting consumers from manipulative practices designed to exploit their vulnerabilities or trick or manipulate them into buying things they don’t need or want and making it difficult for them to cancel. For example, this includes fake timers on deals, hiding information about signing up to a subscription and making subscription cancellation steps too complicated for users.

User Empowerment 

More on the matter of user empowerment, the DSA means that users, for example users of social media platforms, now need to be given clear information on why they are recommended certain information and have the right and a clear means to opt out from recommendation systems based on profiling or tracking. This has led to the large social media platforms making changes. For example:

• Meta’s Facebook launching a chronological news Feeds tab last July to enable users to see posts from their friends, groups, pages and more in chronological order, and no longer showing any “Suggested For You” posts. Also, since February, Meta’s apps, including Facebook, have stopped showing ads to users aged 13-17 based on their activity within the apps.
• Google’s YouTube stopping next video recommendations based on profiling for logged in users with the ‘watch history’ feature turned off.
• Instagram introducing a “Not Personalised” option instead of just an ‘Explore’ tab based on algorithmic content selections (personalised – “For you”).
• TikTok rolling out the option for users in Europe to opt out from its personalised algorithm based feed. As TikTok says, if users opt out of “For You” and “LIVE” feeds, it will instead show “popular videos from both the places where they live and around the world, rather than recommending content to them based on their personal interests”. Also, from July, TikTok stopped showing users in Europe aged 13-17 from being shown personalised ads based on their online activity.
• Snapchat has announced four new measures that it’s taking in the EU to comply with the DSA, including giving users “the ability to better understand why content is being shown to them and have the ability to opt out of a personalised Discover and Spotlight content experience.”

Amazon and Google

With the DSA also affecting very large search engines and companies like Amazon, a couple of examples of how they are complying include:

• Amazon creating a new channel for submitting notices against suspected illegal products and content.
• Google promising to increase data access to increase transparency, helping users to understand more about how Google Search, YouTube, Google Maps, Google Play, and Shopping work.

What Does This Mean For Your Business? 

Tech companies have known about the basic requirements of the DSA for three years and have had four months to comply with the act’s rules. Given the size of the “very large” social media companies and search engines, however, it has required some considerable work: some claiming thousands of staff had been involved, costs, and rethinking and reorganising. The DSA’s rules are far reaching, while compliance means increased operational costs, for example due to the necessary investment in technical infrastructure, legal fees, human resources for content moderation, and data governance systems. Also, the stricter regulations on data collection, content, and restrictions on targeting could limit ad revenues and user engagement. There’s also the added challenge of a greater workload for social media companies, with the need for more effective and continuous monitoring, user outreach, and updates.

That said, users may welcome the chance to essentially opt out of being targeted and many may say that giving greater protection to users, especially children, is long overdue and that legislation appears to have been necessary to make change happen. For the very large tech companies, although they may not be happy with parts of the DSA, they have recognised that compliance is now crucial for sustained market access and legal operation within the EU. The fines for non-compliance are very steep and something, that, along with the bad publicity, they’d like to avoid. The fines can be 6% of turnover, and potential costly suspension of the service is possible.

The new rules have only just come into force, so it remains to be seen how the large tech companies fare going forward in a fast evolving tech landscape that now has the added complications of AI.

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The Report 

The Reuters Institute report is based on the findings of a survey of more than 93,000 people in 46 countries, including the UK, conducted by YouGov in January and February of this year.

Some Key Findings

Some of the key findings about where people young people and others now get their news from are:

• Interest in news stories has declined, there are now high levels of selective news avoidance (36 per cent) i.e. people actively and regularly avoid news (mainly to avoid bad news).
• Trust in the news has fallen and more than half of us (56 per cent) now worry about being able to distinguish between fake and real news on the Internet.
• Around only a fifth of respondents (22 per cent) now say they prefer to start their news journeys with a news website or app (down 10 percentage points since 2018).
• One fifth of young people get their news from TikTok.
• For news topics, TikTok, Instagram and Snapchat users now pay more attention to celebrities and social media influencers than to journalists or media companies.
• Consumption of traditional media, such as TV and print, is falling in most markets, with online and social consumption not making up the gap.
• Younger people have a weaker connection with news brands’ own websites and apps than before, and prefer to access news via side door routes such as social media, search, or mobile aggregators.
• Although Facebook is still one of the most used social networks, shifting its focus away from news (and competition) has meant that its influence on journalism and popularity as a news source is declining.
• Whereas on Facebook and Twitter, news media and journalists are still central to the conversation, audiences say they pay more attention to celebrities, influencers, and social media personalities than journalists in networks like TikTok, Instagram, and Snapchat (the social networks more popular with young people).

In short, people are moving away from Facebook, news apps and websites, with many young people now preferring to get their news from TikTok, Instagram and Snapchat, paying more attention to what influencers and celebrities say about it.

Why? 

The declining engagement with traditional networks, for example Facebook, and the rise of TikTok and a range of other video-led networks, along with the preference for the views of influencers and celebrities is likely to be the result of the influence of the habits of the younger generations. This is because they have grown up with social media and as a result, naturally pay more attention to influencers or celebrities than they do to journalists, even for news. This may also explain why many young people prefer to access news via ‘side door routes’ such as social media, search, or mobile aggregators rather than heading straight for news websites and apps.

As the Reuters Institute director Rasmus Neilsen explains, “Younger generations increasingly eschew direct discovery for all but the most appealing brands” and “They have little interest in many conventional news offers oriented towards older generations’ habits, interests, and values, and instead embrace the more personality-based, participatory, and personalised options offered by social media, often looking beyond legacy platforms to new entrants”. 

Also, the current squeeze on household spending has meant that people have been rethinking how much they can afford to spend on news media.

Facebook’s declining use for news isn’t just because it’s moving away from news but is also down to strong competition from YouTube and youth-focused networks like TikTok.

A general mistrust of news and a lack of confidence about being able to spot fake news, could be due to influences like criticism of the news media, which is often driven by politicians and facilitated by social media.

As for declining interest in news and ‘selective avoidance’ of news, these can be attributed to an abundance of bad news on constant repeat since the COVID-19 pandemic, for example the war in Ukraine and the cost-of-living crisis, thereby causing people to avoid bad news to protect their own wellbeing and mental health.

Podcasts 

As highlighted in Reuters Report, podcasts are still popular, and their usage has grown by one-third since 2018. Although they are a source of news, the news podcasts compete for attention with lifestyle and specialist shows, some of which also deal with news, and the listeners tend to be richer, better educated, and younger.

Where Do People Get Their News From? 

According to YouGov figures, although most UK people now get their news from the national TV news (44 per cent) and news websites (40 per cent but declining), social media is where just over a quarter (26 per cent) of people get their news. An Ofcom report from 2022 confirms that younger age groups are more likely to use the Internet and social media for news, whereas their older counterparts favour print, radio, and TV. The report shows that the reach of print and online newspapers has seen a large decrease from 47 per cent in 2020, 38 per cent in 2022. The report states that social media is overtaking traditional channels for news among teens, with TikTok, Instagram, and YouTube being their top three most used sources for news.

What Does This Mean For Your Business? 

The shifting landscape of news consumption highlighted in the Reuters Institute Digital News Report 2023 has significant implications for various stakeholders in the business world. Publishers, traditional media outlets, social media platforms, and advertisers all need to adapt to the changing preferences and behaviours of news consumers, particularly among younger generations.

For publishers and traditional media, the report emphasises the decline in interest and trust in news stories, as well as the decreasing preference for news websites and apps. This highlights the need for innovative approaches to news delivery and engagement to capture the attention of younger audiences. Investing in video-led networks, exploring personalised and participatory options, and leveraging social media platforms can help reach a broader audience.

Social media platforms, while still influential, face challenges in the evolving news landscape. The decline of Facebook as a news source, primarily driven by competition from platforms like TikTok and YouTube, indicates the importance of diversifying content offerings and adapting to changing user preferences. Platforms must strike a balance between user generated content and news media to remain relevant and trustworthy sources of information.

Advertisers need to reassess their strategies and platforms for reaching their target audiences. With young people paying more attention to influencers and celebrities on platforms like TikTok, Instagram, and Snapchat, there is an opportunity to collaborate with these popular figures to promote their products or services. Advertisers should also consider leveraging podcasts, which have seen growth and appeal to a more affluent, educated, and younger demographic.

Overall, the report highlights the need for businesses to stay informed about the changing news consumption habits and preferences of their target audiences. Adapting to the rise of video-led networks, social media influencers, and personalised content, can help companies stay relevant and effectively engage with consumers. By embracing new platforms and approaches, businesses can navigate the evolving news landscape and leverage these changes to their advantage.

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The Report

The much publicised, recent BBC report followed 30 TikTok accounts broadcasting live from Syrian camps for people displaced by the 11 year-long war in the country. Its main findings were as follows:

• “TikTok middlemen” in the camps had provided families with phones and equipment to go live and gave them access TikTok accounts. These middlemen, in this case affiliated to TikTok in China and the Middle East said they worked for agencies, also known as “livestreaming guilds”, which are part of TikTok’s global strategy to recruit live streamers and encourage TikTok users to spend more time on the app.
• Once set-up on TikTok, the families, adults, and children used daily TikTok livestreams to beg for digital donations, repeating phrases such as “Please like, please share, please gift.” The BBC has reported that the TikTok middlemen were using British SIM cards suggested to families that they should aim their pleas at UK people because they are likely to give the most generously.
• The BBC observed TikTok viewers donating digital gifts with streams earning up to $1,000 (£900) an hour.

Families Received A Fraction of the Money

The crux of the report was not just the sad sight of the begging families, the role of the middlemen, plus the fact that many people donated in good faith and urged others to do so but also that:

• TikTok is alleged to have taken around 70 per cent of the digital donations as commission.
• The TikTok middlemen also took around a 35 per cent commission of the remainder.

Profiting From Misery?

All of this translated into media accusations that TikTok was greedily profiting from displaced Syrian refugees and was playing a part in “exploitative begging.” The war in Syria has displaced around 13 million people, with 12 million being food insecure, 50 per cent now living in extreme poverty. Nearly 5.8 million are children.

How Was This Evidence Uncovered?

The BBC has claimed that it was able to uncover what appears to be exploitative activity by building a computer program to scrape information from 30 of the Syrian camp TikTok accounts of over 5 months. This was part of a wider operation by BBC’s Global Disinformation Unit, BBC Arabic and BBC Eye Investigations which claim to have followed more than 300 TikTok accounts livestreaming from north-west Syria. It also claims to have used BBC staff in London to send TikTok gifts and measured the amount that actually reached a test account, set up through TikTok-affiliated agencies. One example it gave was that BBC staff sent $106 in donation and the end balance in the account following a livestream was $33. This appeared to indicate that TikTok had taken 69% of the value of the gifts in commission.

What Did TikTok Say?

TikTok has been reported as saying that the livestream begging is a violation of its Community Guidelines and that it has now taken action to remove such accounts from its platform. TikTok is also reported to have said that it would terminate its relationship with the agency in question and will be writing to all its LIVE agencies to remind them of their contractual agreement to adhere to its policies. TikTok is also reported to have said that it took significantly less than 70% of donations made on the livestreams in question, and that it will be expanding its global policies around exploitative begging. The social media giant has also said that it will soon let users run adult-only livestreams although it is not yet clear how this could be enforced.

Child Privacy Issues

This is not the first time TikTok has faced accusations about the protection of users, particularly children on its platform. For example, in September the UK’s Information Commissioner’s Office (ICO) issued the company with a notice of intent (preceding a potential fine). This related to allegations that in May 2018 and July 2020, TikTok may have processed the data of children under the age of 13 without appropriate parental consent. It is also alleged that TikTok failed to provide proper information to its users in a concise, transparent, and easily understood way and processed special category data without legal grounds to do so. That said, TikTok is reported to be only one of 50 different online services that the ICO is looking at in relation to the Children’s Code.

What Does This Mean For Your Business?

The reports of the BBC investigation have many sad and disturbing aspects to them, not least the plight of the war-refugees in the first place. This investigation, however, has led to the revelation that a social media platform familiar to young people everywhere and associated mainly with fun videos may have been playing host to (and profiting from) the misery of refugees and particularly children. There are also the disturbing allegations about the part that agency middlemen affiliated with TikTok may have played in facilitating what’s been termed “exploitative begging.” This may all be more evidence of how social media companies need to do much more to effectively enforce and update their own rules and policies, particularly in protecting children and the vulnerable. TikTok does provide a way for people to make money on its platform but in this case, it seems that the company’s system was flawed in a way that has damaged the company’s reputation, allowed others to be exploited, and may have allowed affiliated agencies to act in a less than satisfactory way, the details of which were only discovered by a third-party. TikTok has said that it is acting with regards to the accounts in question and its agencies, yet it is worrying that social media platforms generally are still places that appear to need surveillance and pressure from the outside to pick up on risky areas and improve safety, privacy, and other important factors for users.

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