ByteDance

Last updated

ByteDance Ltd.
Native name
字节跳动有限公司
FormerlyDouyin Group (HK) Ltd. (2018–2022)
Company type Private
Industry Internet
Founded13 March 2012;12 years ago (2012-03-13)
Founders
Headquarters
Area served
Worldwide
Key people
  • Zhang Yiming (Founder & Chairman)
  • Liang Rubo (Founder & CEO)
  • Erich Andersen (global GC) [2]
  • Kelly Zhang (CEO of ByteDance China) [3]
  • Lidong Zhang (Chairman of ByteDance China) [3]
  • Shou Zi Chew (CEO of TikTok)
Products
RevenueIncrease2.svg US$120 billion (2023) [4]
Increase2.svg US$2 billion (2022) [5]
Number of employees
c.150,000 (2023) [6]
Subsidiaries
ASNs 396986, 138699 OOjs UI icon edit-ltr-progressive.svg
Website bytedance.com OOjs UI icon edit-ltr-progressive.svg

According to disclosures filed under the Lobbying Disclosure Act of 1995, ByteDance has lobbied the United States Congress, White House, Department of Commerce, Department of State, and the Department of Defense. [64] [65] Bills targeted include the United States Innovation and Competition Act, American Innovation and Choice Online Act, the annual National Defense Authorization Act, and the Protecting Americans from Foreign Adversary Controlled Applications Act. [66] [67]

ByteDance's American lobbying team is led by Michael Beckerman [68] [66] and includes former US Senators Trent Lott (R-Mississippi) and John Breaux (D-Louisiana) as well as former US Representatives Jeff Denham (R-California), Bart Gordon (D-Tennessee) and Joe Crowley (D-New York). [69] The company has hired K&L Gates, LGL Advisors, and other firms. [66]

ByteDance spent more than $17.7 million on lobbying from its first report in 2019 up to July 2023, [70] and its 2023 lobbying expense added up to $8.7 million. [71]

In March 2024, ByteDance responded to ad campaigns by anti-TikTok advocacy groups calling to ban the app by launching its own $2.1 million marketing campaign across swing states that had vulnerable Senate Democrats up for re-election. [72]

Products

CapCut

First released to the public in April 2020, CapCut is a video editing software made for beginners. [73] As of March 2023, CapCut has more than 200 million active users each month, and according to The Wall Street Journal, it was downloaded more than the TikTok app in March 2023. [74] In March 2023, it was the second-most downloaded app in the U.S. behind that for Chinese discount retailer, Temu. [29]

Douyin

First released to the public in September 2016, Douyin (Chinese :抖音; pinyin :Dǒuyīn), previously named A.me, is the Chinese version of TikTok. The application is a short-form video social media platform that differs from its international counterpart version by having more advanced features. [75] TikTok and Douyin have almost the same user interface but no access to each other's content. Their servers are each based in the market where the respective app is available. [76]

Lark

First released to the public in 2019, Lark is ByteDance's enterprise collaboration platform. [77] Lark was originally developed as an internal tool, becoming ByteDance's primary internal communication and collaboration platform, but was eventually made available to external users in certain markets. [78]

TikTok

First released to the public in September 2017, TikTok is a video-sharing social networking service [79] used to make short-form videos, from genres like dance, comedy, and education. [80] [81] On 9 November 2017, ByteDance acquired Shanghai-based social media start-up Musical.ly for up to US$1 billion. They combined it and prior acquisition Flipagram [82] [83] into TikTok on 2 August 2018, keeping the TikTok name.

TikTok Music

Formerly known as Resso, TikTok Music launched in Indonesia and Brazil in July 2023. [84] On 19 October 2023, TikTok Music premiered in Mexico, Singapore and Australia. [85]

The platform allows users to highlight and share lyrics, comments and other user-generated content with each other alongside streaming of full-length tracks. [86] ByteDance says that it has licensing agreements in place with Warner Music Group, Sony Music Entertainment, Merlin Network and Beggars Group, among others. [87] Resso was shut down in India in January 2024, due to "local market conditions". [88] [89]

On 24 September 2024, ByteDance announced that TikTok Music would shut down on 28 November 2024. [90]

Toutiao

Toutiao (Chinese :今日头条; pinyin :Jīnrì Tóutiáo), launched in August 2012, [15] started out as a news recommendation engine and gradually evolved into a platform delivering content in various formats, such as texts, images, question-and-answer posts, microblogs, and videos. [91] [92]

In January 2014, the company created the "Toutiaohao" (头条号) platform to attract more content creators. Later in the year, it added video capabilities. Toutiao used interest-based and decentralized distribution to help long tail content creators find an audience. [93]

In 2017, Toutiao acquired Flipagram. ByteDance would later expand Toutiao's features to include: a missing person alerts project whose alerts have helped find 13,116 missing persons as of June 2020; [94] short-form video platform Toutiao Video, later rebranded as Xigua Video (西瓜视频, also known as Watermelon Video), which hosts video clips that are on average 2–5 minutes long; [95] and Toutiao Search, a search engine. [96]

Xigua Video

Initially launched as Toutiao Video in 2016, Xigua Video (Chinese :西瓜视频; pinyin :Xīguā shìpín) is an online video-sharing platform that features user-created short and mid-length videos and also produces film and television content. [97]

Nuverse

Initially launched in 2019, Nuverse has launched as a video game publisher company. [98] The first game launched outside mainland China was Warhammer 40,000: Lost Crusade in 2021. Later in 2021, Moonton became a subsidiary of Nuverse, after winning the bid, initially set by Tencent. [99] [100]

In 2022, the studio has launched Marvel Snap in October worldwide, after closed alpha testing in the Philippines, and gradually entering open beta with the first country being New Zealand. In November 2023, Reuters reported ByteDance was restructuring Nuverse and retreating from gaming. [101]

Whee

Whee, an image-sharing and messaging app, launched to the public in June 2024 but not the US. [34]

Other products and acquisitions

  • Gogokid was launched in May 2018 as an online English learning platform for children that provides one-on-one classes with native English speakers. [102] In August 2021, ByteDance announced that the app business will be shuttered and most of Gogokid's staff will be laid off, following new regulations imposed on the after-school tutoring industry in China. [103]
  • Moonton was acquired by ByteDance in 2021 and was the developer of the mobile eSports game Mobile Legends: Bang Bang. [104] [105]
  • Neihan Duanzi, ByteDance's first app, was shut down in 2018 following a crackdown by the national media regulator.
  • Party Island (Chinese: 派对岛; pinyin: Pàiduì dǎo) is a social media app that allows users to create avatars, join virtual events like concerts, and chat with other participants. It also has a messaging function within the app, so users can send texts to each other privately and join group chats. It is open to public testing in July 2022. [106]
  • TopBuzz was a content platform for videos, articles, breaking news and GIFs. [107] The service was launched in 2015 and abandoned in 2020 due to dwindling business. [108] [109] Former employees alleged that TopBuzz was used to push soft content messaging sympathetic to China in overseas markets; this was denied by ByteDance. [107]
  • 8th Note Press, a publisher established by ByteDance in 2023. [30]

Censorship, surveillance, and data privacy concerns

ByteDance has garnered attention over surveillance, [110] [111] data privacy, [112] and censorship concerns, [113] [114] including content pertaining to human rights in Tibet and the persecution of Uyghurs in China. [note 1] Concern has also been raised over the potential effects, including extraterritorial jurisdiction, of China's National Intelligence Law and Cybersecurity Law on ByteDance and its employees. [120] [54] :42–43

In September 2024, the Federal Trade Commission released a report summarizing 9 company responses (including from ByteDance) to orders made by the agency pursuant to Section 6(b) of the Federal Trade Commission Act of 1914 to provide information about user and non-user data collection (including of children and teenagers) and data use by the companies that found that the companies' user and non-user data practices put individuals vulnerable to identity theft, stalking, unlawful discrimination, emotional distress and mental health issues, social stigma, and reputational harm. [121] [122] [123]

Government regulation

China

In April 2018, China's state media regulator, the National Radio and Television Administration (NRTA), ordered the temporary removal of Toutiao and Neihan Duanzi from Chinese app stores. The NRTA accused Neihan Duanzi in particular of hosting "vulgar" and "improper" content and "triggering strong sentiments of resentment among internet users". [124] The following day, Neihan Duanzi announced it was permanently shutting down. [124] In response to the shutdown, Yiming issued a letter stating that the app was "incommensurate with socialist core values" and promised that ByteDance would "further deepen cooperation" with the authorities to promote their policies. [125] [126] Following the shutdown, ByteDance announced that it would give preference to Chinese Communist Party members in its hiring and increase its censors from 6,000 to 10,000 employees. [127] [128] [129]

As of 2019, ByteDance's Beijing headquarters has maintained an office where cybersecurity police are stationed so that illegal content can be instantly reported. [130] [131] In November 2019, the Cyberspace Administration of China (CAC) ordered ByteDance to remove "slanderous" information on Fang Zhimin from Toutiao. [132] In April 2020, the CAC ordered ByteDance to take down its office collaboration tool, Lark, because it could be used to circumvent Internet censorship. [133] In January 2021, Chinese regulators fined ByteDance for spreading "vulgar information." [134] [135] In April 2021, ByteDance was among 13 online platforms ordered by the People's Bank of China to adhere to tighter data and financial regulations. [136] The bank stated that ByteDance must conduct comprehensive self-examination and rectification to adhere to the country's laws. [137] In May 2021, the CAC stated that ByteDance had engaged in illegal data collection and misuse of personal information. [138]

In March 2021, the State Administration for Market Regulation fined a ByteDance subsidiary and other companies for antitrust violations. [62]

In April 2022, ByteDance announced that it would report users' content on Toutiao and Douyin that engaged in "historical nihilism" in contradiction of official CCP history. [139]

In November 2022, during the 2022 COVID-19 protests in China, the CAC directed ByteDance to intensify its censorship of the protests. [140]

In November 2023, Forbes reported that ByteDance's internal workplace tool called Feishu, which contains "product network security, data security, personal information, and daily operations," was accessed by the CAC and other Chinese government authorities in the run-up to the 20th National Congress of the Chinese Communist Party. [130]

India

Citing national security issues the Indian Government banned CapCut and TikTok along with 58 other Chinese apps on 29 June 2020. [141] The ban was made permanent in January 2021. [142] [74] In March 2021, the Indian government froze ByteDance's bank accounts in the country for alleged tax evasion, which ByteDance disputed. [143]

Ireland

In 2023, ByteDance was scrutinized by the Central Bank of Ireland for deficiencies in its anti-money laundering controls of its payment division. [144]

Taiwan

In December 2022, Taiwan's Mainland Affairs Council announced an investigation into ByteDance on suspicion of operating an illegal subsidiary in the country. [145] The company reportedly registered "Tiktoktaiwan Co Ltd" in March, which changed its name to "ByteDance Taiwan" in November. [146]

Turkey

In 2022, Turkey's Financial Crimes Investigation Board (MASAK) initiated a probe into ByteDance in relation to millions of dollars in fund transfers involving TikTok accounts that were suspected of money laundering or terrorism financing. [144]

United States

In 2019, ByteDance's subsidiary TikTok was fined by the Federal Trade Commission (FTC) for violating the Children's Online Privacy Protection Act. [147] [148] In response, ByteDance added a kids-only mode to TikTok which blocks the upload of videos, the building of user profiles, direct messaging, and commenting on other's videos, while still allowing the viewing and recording of content. [149] In August 2024, the FTC and U.S. Department of Justice filed a joint lawsuit alleging violations of the 2019 consent decree with the FTC. [150]

TikTok and ByteDance have come under US lawmaker scrutiny due to fears of surveillance by the Chinese government. [151] U.S. President Donald Trump wanted TikTok to be sold or be banned from app stores in the country. His executive orders were later blocked by the courts and revoked by his successor Joe Biden. [152] [153] [154] [155] On 28 August 2020, China announced an update to its export control rules that, according to experts, could give Chinese authorities a say in any potential sale of ByteDance's technology to foreign firms. [156]

In March 2023, the United States Department of Justice and the Federal Bureau of Investigation opened an investigation after ByteDance employees tracked journalists to find internal leaks. [8] In response, ByteDance fired four employees. [157] [158] [159]

In March 2024 the House of Representatives passed a bill which, if passed through the Senate and signed by the President, forces ByteDance to divest TikTok or have the platform banned. [160] In April, the United States Congress passed a modified version of the bill in a foreign aid package. [161] [162] The bill was signed into law by President Joe Biden on 24 April 2024, giving ByteDance until 19 January 2025, to divest TikTok. [163]

Notes

  1. See references: [115] [116] [117] [118] [119]

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Zijie Tiaodong
Chinese 字节跳动
Transcriptions
Standard Mandarin
Hanyu Pinyin Zìjié Tiàodòng
Bopomofo ㄗˋ ㄐㄧㄝˊ ㄊㄧㄠˋ ㄉㄨㄥˋ
Wade–Giles Tzu4-chieh2 T'iao4-tung4
Tongyong Pinyin Zìh-jié Tiào-dòng
IPA [tsɹ̩̂.tɕjě tʰjâʊ.tʊ̂ŋ]