The content recommendation algorithm behind TikTok is under scrutiny after its owner, ByteDance, formed a joint venture with American and global investors, including Oracle, for TikTok’s U. S. operations. This move aims to prevent a U. S. ban and reduce trade tensions between the U. S. and China, but uncertainty remains about who controls the recommendation algorithm, which is crucial to TikTok’s success. Former National Security Council member Rush Doshi noted that it’s unclear if the algorithm will be transferred, licensed, or remain under Beijing’s control, with Oracle potentially only overseeing it.
Before this development, ByteDance indicated it would rather close the app in the U. S. than part with the algorithm, but recent reports suggest it will keep ownership of TikTok’s U. S. operations while ceding control of the app’s data, content, and algorithm to the new joint venture. The joint venture is set to manage U. S. user data and the algorithm, while ByteDance retains a separate division for revenue-generating operations like e-commerce and advertising. The Chinese government has not yet taken a position on this deal, and previous laws give it approval rights over the export of algorithms, complicating any sale of the U. S. app.
Analysts point out that TikTok’s success is not only due to its powerful algorithms but also the way they interact with the short-video format. Unlike other platforms that build algorithms based on social connections, TikTok’s algorithm is designed around users’ interests. It can adapt to users’ changing preferences and operates well on mobile devices, which gives it an advantage over competitors that had to modify their platforms. TikTok’s earlier entry into the short-video market has also contributed to its lead.
Research indicates that TikTok’s algorithm frequently recommends content outside of users’ known interests to enhance user engagement. A study found that 30% to 50% of recommended videos exploit user interests, aiming to better understand user preferences and keep them engaged.
With information from Reuters
