• Rep. John Moolenaar expresses concerns over TikTok's algorithm control by ByteDance.
• Trump and Xi Jinping are negotiating a deal to avoid a U.S. ban on TikTok.
• Proposed agreement may involve U.S. investors gaining partial ownership of TikTok.
• ByteDance aims to adhere to Chinese laws while negotiating with U.S. representatives.
• Algorithm control remains a primary concern in discussions about the platform's future.

Rep. John Moolenaar (R-Mich.) has raised significant concerns regarding a potential TikTok spinoff's reliance on an algorithm from its parent company, ByteDance, based in China. As negotiations regarding TikTok intensify, Moolenaar highlighted that lawmakers established legal safeguards to prevent ongoing cooperation with ByteDance, particularly concerning its algorithm. He stated, "I am concerned the reported licensing deal may involve ongoing reliance by the new TikTok on a ByteDance algorithm," emphasizing the risks associated with potential Chinese Communist Party (CCP) influence over U.S. user data, according to The Hill.

Current developments indicate that U.S. President Donald Trump is poised to discuss a TikTok agreement with Chinese President Xi Jinping, aiming to finalize a deal that would allow the social media platform to operate in the U.S. without facing a ban. Trump has spoken about the desirability of securing TikTok's operations to appeal to young Americans, stating that a group of American investors could control the app's operations. However, details remain uncertain, including the exact ownership structure and whether the algorithm will be shared, as existing laws prohibit its export without approval from Beijing, reports Al Jazeera.

Analysts have pointed out that the heart of the TikTok controversy lies within its algorithm, which is integral to its user engagement strategies. A potential deal could involve licensing this technology, akin to renting rather than outright ownership. Experts have expressed skepticism about whether U.S. owners could maintain independence from Chinese influence, especially if ByteDance retains some control or access to TikTok’s algorithm, according to CBS News.

As negotiations progress, ByteDance has publicly stated its intention to comply with both U.S. and Chinese laws while seeking to keep TikTok operational in the U.S. The company's communication reflects a tightrope act between U.S. regulatory demands and adherence to Chinese law, which complicates the potential divestiture process. In a recent post, ByteDance indicated a commitment to "work in accordance with applicable laws," hinting at a willingness to negotiate a compromise between Chinese restrictions and American expectations, as detailed in a report by South China Morning Post.

Despite ongoing discussions, significant uncertainties remain regarding ownership control, especially pertinent to user data and algorithm management. Both U.S. and Chinese representatives are navigating complex geopolitical considerations while striving for a resolution that could see significant U.S. influence over TikTok while addressing national security concerns. Analysts have underscored the pressing need to ensure that any agreement is designed to protect American users' data from potential foreign access and manipulation, reinforcing the need for strict criteria surrounding algorithm ownership and operational independence, according to Al Jazeera, CBS News, and South China Morning Post.