Monday, January 9, 2023

Axios Login: TikTok vs. "Death Star"

Plus: Seattle vs. social media | Monday, January 09, 2023
 
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Axios Login
By Ina Fried · Jan 09, 2023

There were two incredible plays in the waning minutes of the Detroit Lions-Green Bay Packers game, one a catch made with the legs and the other a trick play that defies words. Today's Login is 1,247 words, a 5-minute read.

⚡️ Situational awareness: House Republicans plan to launch a new investigative panel this week that will demand copies of White House communications with Big Tech companies, sources tell Axios' Mike Allen.

 
 
1 big thing: TikTok's "Death Star" dangers
Illustration of an anvil swaying back and forth above the tiktok app icon

Illustration: Natalie Peeples/Axios

 

TikTok enters 2023 facing deepening doubts in Washington about its future in the U.S. thanks to its ownership by China-based ByteDance.

Why it matters: The short-video colossus now dominates the American social media landscape, raising concerns among lawmakers, competitors and users over data security, privacy and freedom of speech, Axios' Ashley Gold reports.

The big picture: Every social media company must navigate these same issues in both the U.S. and the EU — but only TikTok carries the albatross of foreign ownership at a moment when anti-China sentiment runs hot in D.C.

Driving the news: For TikTok, the clock has long been ticking on a proceeding by a U.S. government panel, the Committee on Foreign Investment in the United States (CFIUS).

  • If the company can't satisfy CFIUS that its American operations are secure from Chinese government meddling, TikTok could face a U.S. shutdown or an order to sell itself to U.S. owners.
  • In 2020 the Trump administration tried to force a TikTok sale and then to ban the app but courts blocked the moves.
  • Some Biden administration security officials now favor similar moves, per multiple reports.

What they're saying: TikTok is "running the standard social media playbook, highlighting their good works and contributions ... that's what Facebook does, that's what Twitter does," one tech lobbyist told Axios.

  • "But there's concurrently the Death Star about to blow up the rebel base, and that's why concluding a CFIUS deal is so critical."

Details: TikTok's CFIUS negotiations have intensified, with TikTok offering expanded security plans involving Oracle as a partner, per Reuters.

  • At the same time, though, TikTok has halted hiring consultants to help implement any deal, suggesting the parties remain far apart, Reuters also reported Friday.
  • Without a plan sanctioned by U.S. national security officials, TikTok does not have a bulletproof story to tell lawmakers about how it keeps U.S. users' data safe.

The other side: "We have been working with CFIUS for over two years to address all reasonable national security concerns about TikTok in the U.S.," TikTok spokesperson Brooke Oberwetter told Axios in a statement.

  • "The solution under consideration by CFIUS is a comprehensive package of measures with layers of government and independent oversight to address concerns about TikTok content recommendation and access to U.S. user data — measures well beyond what any peer company is doing today," Oberwetter said.

In Congress, some legislators are growing impatient with the CFIUS process and begun taking their own action.

  • Congress' big year-end spending bill included legislation banning TikTok from federal employees' devices.
  • Sen. Marco Rubio (R-Fla.) introduced a bill to ban TikTok last December with a bipartisan House counterpart from Reps. Mike Gallagher (R-Wis.) and Raja Krishnamoorthi (D-Ill.).
  • Those moves on the Hill put more pressure on CFIUS negotiators to work out a deal that's airtight and won't anger lawmakers.

A number of states have also begun moving against TikTok.

  • More than a dozen state governments have banned the app on government-issued devices. At least 22 states have taken some sort of action on TikTok since 2020, per GovTech. TikTok's Oberwetter said such bans "do nothing to advance cybersecurity in their states and are based on unfounded falsehoods about TikTok."
  • Indiana Attorney General Todd Rokita filed two lawsuits against TikTok last December, accusing the company of lying about the safety of user data and that the app is appropriate for teen users. A group of state attorneys general launched an investigation into whether TikTok harms children and teens' mental health last March.

Between the lines: Brendan Carr, a Republican commissioner at the Federal Communications Commission, told Axios in November that TikTok should be banned outright in the U.S.

  • Carr tells Axios that new revelations that TikTok employees (who were later fired) tracked multiple journalists make the app's continued availability in Apple's and Google's app stores "untenable."

The bottom line: No matter what TikTok does, and what deal CFIUS might work out, as long as ByteDance owns TikTok its leadership will be dodging hard questions.

  • Last month, CNN's Jake Tapper repeatedly pressed TikTok head of public policy Michael Beckerman about China's treatment of Muslim minorities.
  • "That's not what I focus on," Beckerman said, adding that TikTok does not censor content on behalf of any government.
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2. Smart contact lens startup lays off 75% of staff
MojoVision's prototype smart contact lens

Photo: Courtesy of Mojo Vision

 

Mojo Vision, a startup that had embarked on a years-long effort to create a smart contact lens with a built-in display, is pivoting from that focus and laying off three-quarters of its 120-person staff.

Why it matters: A number of the most ambitious efforts in tech, especially around augmented and virtual reality, face challenges amid a slowing economy and a more difficult fundraising environment.

Details: The company said in a blog post on Friday that it is shifting its near-term work to focus on the micro-LED display technology it developed for use in the smart contact lenses.

Between the lines: The company demonstrated a working prototype last year, but commercialization was still years off.

  • "Even as we made important product development progress, Mojo has faced significant challenges in raising capital," CEO Drew Perkins said in a blog post.
  • "The slumping global economy, extremely tight capital markets, and the yet-to-be proven market potential for advanced AR products have all contributed to a situation where Mojo Vision has been unable to find additional private funding to continue its development of Mojo Lens."

The big picture: Mojo Vision wasn't alone in pursuing smart contacts.

  • Google has invested in trying to develop lenses that can be used to measure blood glucose, though this has proven to be tricky.
  • Other big names have also explored the field, including Samsung, as have startups such as Innovega.
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3. Quick takes: Seattle schools vs. social media

1. Seattle's public school district is suing several social media companies, including TikTok and Meta, under a state public nuisance law, charging that the companies' "misconduct has been a substantial factor in causing a youth mental health crisis."

  • What they're saying: "This mental health crisis ... is the result of the Defendants' deliberate choices and affirmative actions to design and market their social media platforms to attract youth," the lawsuit states.

2. The breakneck development and deployment of facial recognition technology are outstripping efforts to fix alarming pitfalls.

  • The big picture: Police, retail stores, airports and sports arenas are rapidly increasing biometric surveillance. But critics say the results are too often blindly trusted, without enough double-checking of matches.

3. China has plans to regulate any AI technology that can be used to create deepfakes. That would include the growing field of text and image generators like OpenAI's ChatGPT and Dall-E.

  • Between the lines: The new Chinese rules prohibit the use of such systems not only to create deepfakes, but, per the Wall Street Journal, also covers "information deemed disruptive to the economy or national security" — a very broad category.
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4. Take note

Trading Places

  • Seattle-area tech veteran Mike Davidson is joining Microsoft as a corporate VP, heading up its Web Experiences unit, which includes MSN, Bing and the Microsoft Edge browser.

ICYMI

  • Elon Musk is asking a federal judge to move his trial for an upcoming Tesla shareholder lawsuit out of San Francisco, claiming negative local news coverage has biased potential jurors against him. (Axios)
  • In a win for the "right to repair" movement, Deere & Co. has reached an agreement with the American Farm Bureau Federation that ensures that farmers will be able to fix machines they own or take them to an independent repair shop. (Reuters)
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5. After you Login
Source: Giphy

A fun Twitter thread recalling the glory days of the cassette tape turned epic when Maxell joined the conversation.

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Thanks to Scott Rosenberg and Peter Allen Clark for editing and Bryan McBournie for copy editing this newsletter.

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