After CEO Shou Zi Chew’s congressional testimony didn’t sway lawmakers concerned about ties to Beijing, calls to ban the app are likely to escalate — which could empower social media rivals.
“We know that TikTok had been extremely effective in competing in the social media market,” says Eric Goldman, a professor and director of the High Tech Law Institute at Santa Clara University School of Law. “To the extent there are concerns about market dominance, curbing TikTok is counterproductive to antitrust concerns.”
To date, lawmakers have offered no evidence that TikTok has provided American user data to the Chinese government or that it’s been directed to influence the content users see on the platform. “When you eliminate an option like TikTok, that will create even stronger market power for companies already in the social media space,” says Rebecca Allensworth, an antitrust professor at Vanderbilt law school. Emile El Nems, a senior credit officer at Moody’s Investors Service, says a ban would “benefit YouTube, Instagram and Snap, likely resulting in higher revenue share of the total advertising wallet.
“China would likely compete robustly to fill any void left by Qualcomm should Qualcomm’s ability to invest and innovate be diminished,” stated Ellen Lord, then the Under Secretary of Defense, in a court declaration. “Participation and leadership in 5G standard setting is a zero-sum game — if the United States does not lead, an aggressive, eager China will set standards to accommodate its own wishes.
In 2018, the Justice Department charged Huawei with stealing trade secrets from U.S. companies after Congress placed the company on a black list, preventing U.S. entities from selling manufacturing parts to the Chinese firm. Huawei in a statement at the time called the actions “political prosecution.”
The enforcement actions further consolidated the market for semiconductors called “dynamic random-access memory” by crippling one of Micron’s competitors. Micron — the only remaining U.S. maker of those semiconductors which accounted for over half of China’s supply in 2017 — has been accused in federal court and by foreign regulators of violating antitrust laws. The firm and two others own 95 percent of the market for such chips, according to court filings in a price-fixing suit.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
AOC rejects TikTok ban in first TikTok video, says 'doesn't feel right'Alexandria Ocasio-Cortez rejected banning TikTok in her first TikTok video, saying it 'just doesn't feel right to me'
Consulte Mais informação »
After TikTok hearing, users declare their love for the platform — and the CEOAfter TikTok CEO Shou Zi Chew testified before a congressional hearing, the app’s users are posting videos praising his testimony and criticizing lawmakers. And some users are showing support the way they know best: with fan edits.
Consulte Mais informação »
FCC Commissioner warns it's 'crystal clear' TikTok puts Americans at 'risk' for Chinese surveillanceFCC Commissioner Brendan Carr said in an interview that evidence showed China was spying on American citizens through the app TikTok and it should be banned.
Consulte Mais informação »