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  • Preparations for ‘de-occupation’: Annexed Crimea not forgotten by Ukraine | CNN

    Preparations for ‘de-occupation’: Annexed Crimea not forgotten by Ukraine | CNN

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    CNN
     — 

    While the fury of conflict echoes across the eastern Donbas region, a very different war is being waged in Crimea: one of night-time explosions, sabotage and disinformation.

    Reclaiming Crimea may seem like an unlikely quest for Ukraine but it is putting considerable effort into making Russia’s occupation as uncomfortable as possible. And the Russians are going to great lengths to fortify the peninsula, which they illegally annexed in 2014.

    That includes hiring legions of workers to build fortifications and trenches.

    The Ukrainian military has been carrying out attacks in Crimea with two goals: harass the Russian Black Sea fleet and disrupt vital Russian supply lines.

    Satellite imagery in February showed a substantial Russian build-up of equipment and armor at several points across northern Crimea.

    Few details emerge about Ukrainian strikes in Crimea. Only occasionally does unofficial social media video provide clues about what has been hit. And only occasionally do normally circumspect Ukrainian officials refer to any actions in Crimea.

    This is part of the conflict that is fought largely in the shadows, a far cry from the brutal attritional warfare that rages across Donbas.

    But last week Ukraine’s Main Intelligence reported that explosions in the Crimean town of Dzhankoi were due to a strike against Russian Kalibr cruise missiles being transported via rail. It said the strike served to “demilitarize Russia and prepare the Crimean peninsula for de-occupation.”

    There’s no way to confirm that Kalibrs were destroyed. But Russia did launch an inquiry “into a recent drone attack repelled by Russian air defense systems near the city of Dzhankoi,” which is one of the main hubs for Russian equipment moving through Crimea.

    Kalibrs would be a high priority target given the havoc they cause when fired by the Black Sea fleet at targets in Ukraine.

    Two days after the Dzhankoi explosions, the night sky above Sevastopol – the home of the Black Sea fleet – was lit up by air defenses. Social media video showed a large explosion in the harbor area. The governor of the city said a Ukrainian attack using marine drones, not the first against the port of Sevastopol, had been foiled.

    These strikes do not presage a Ukrainian plan to retake Crimea, even if that remains a distant goal for President Volodymyr Zelensky. But the peninsula is an artery through which Russia pushes troops and weapons into southern Ukraine, as well as being the defensive rear for Russian forces still holding part of Kherson region.

    Ukrainian officials say that the Russians have begun mining part of the Dnipro river delta to impede any landings in southern Kherson. Most days, there are dozens of artillery and rocket strikes by Russian forces across the river into Ukrainian-held areas of Kherson.

    There are also occasional acts of sabotage inside Crimea by unknown actors. Russian media reported an attempt to blow up a gas pipeline in the city of Simferopol this month, which caused an explosion and fire.

    The Ukrainian Resistance Center, an official agency, claimed in February that partisans had sabotaged a railway in Bakhchisaray near Sevastopol; pro-Russian social media showed modest damage to tracks.

    The extent of any partisan movement in the peninsula is unclear; at most it’s an irritant to the Russian-backed authorities – for now. There are occasional reports from the Russian-appointed authorities about the arrest of infiltrators. The United Nations reported this week that it had documented 210 prosecutions in Crimea through the end of January on the grounds of “public actions directed at discrediting” and “obstructing” the Russian armed forces.

    In this file photo taken in 2015, people walk by fresh graffiti depicting Vladimir Putin in Crimea.

    There are also occasional curfews in towns near Crimea, such as Chaplynka, through which Russian armor frequently passes – most likely to prevent any information being passed to the Ukrainian military. Ukraine alleged that last week the Russian National Guard raided Chaplynka and inspected locals’ documents, phones and vehicles.

    Another aspect to the low-key conflict in Crimea is disinformation. Radio station frequencies have been hacked — for example recently to spread fake news about an order to evacuate the peninsula. There is a constant drip-feed of claims from Kyiv designed to unsettle Russians in Crimea. On Friday Ukraine’s Defence Intelligence spokesman, Andrii Yusov, said that officials from the Russian-backed administration in Crimea were rushing to sell their property and evacuate their families.

    There is no independent evidence of an exodus of pro-Russian officials.

    While any Ukrainian offensive to reclaim Crimea is at best distant, the Russians are taking no chances. Satellite imagery shows extensive defensive fortifications such as trenches close to or in Crimea, near the town of Armiansk, for example.

    This month the Russian-appointed head of Crimea, Sergei Aksenov, said the creation of a fortification line in the peninsula was a guarantee of its security.

    Denys Chystikov, a senior Ukrainian official with responsibility for Crimea, said Friday that fortifications are being built on the coast and near the border [with mainland Ukraine, but also deeper inside Crimea. “This is being done in order to show to local population that the peninsula is preparing to repel an attack.”

    Ukrainian soldiers stand guard at a check point at the border between Ukraine and Crimea near the Salkovo village near Kherson, on March 18, 2014.

    CNN reviewed online job postings for builders and carpenters that promised up to 7,000 rubles ($90) a day plus accommodation. One read: “Laborers wanted for fortifications, 3,000-7,000 rubles, per job completed, Krasnoperekopsk,” a town just inside Crimea.

    A reporter with the Russian independent outlet Verstka was told that dozens of people were needed for the fortification work. The Ukrainian military has claimed that residents are also coerced to do the work and that defensive fortifications are being built between the towns of Ishun and Voinka in northern Crimea. A social media video appears to show the work in progress.

    It may be a prudent move by the Russians. Ukrainian intelligence officials are on record as saying that a strategic goal of any counter-offensive this spring would be to cut the occupied corridor between Crimea and the Russian border along the Sea of Azov.

    That would entail striking south towards Melitopol and into parts of Kherson adjacent to Crimea. Whether Ukrainian forces would try to enter Crimea is an open question. Much to Kyiv’s annoyance, some US officials are distinctly cool on such a prospect, feeling it would usher in unpredictable escalation. Gen. Mark Milley, the Chairman of the Joint Chiefs of Staff, said earlier this year that “it would be very, very difficult to militarily eject the Russian forces from all – every inch of Ukraine and occupied – or Russian-occupied Ukraine.”

    Ukrainian artillery unit members fire toward Kherson on October 28, 2022.

    Anchal Vohra wrote recently in Foreign Policy magazine that “while isolating Crimea is one thing, entering, attacking, and holding such a heavily fortified region guarded by the Russian naval fleet is quite another.”

    Just this week, the deputy head of Russia’s Security Council, Dmitri Medvedev, warned that Russia would use “absolutely any weapon” should Crimea try to retake Ukraine.

    As the rumor mill about the goals of a possible Ukrainian counter-offensive later this spring intensifies, so does the appetite for what the Russians call maskirovka, the art of deception. Neither side has a monopoly on that.

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  • TikTok and its CEO are fighting to save the app in the US | CNN Business

    TikTok and its CEO are fighting to save the app in the US | CNN Business

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    As a growing number of lawmakers raise national security concerns about TikTok’s ties to China, and some experts worry about the app’s impact on young people’s mental health, CNN is hosting a special to dig into these issues. Watch “CNN Primetime: Is time up for TikTok?” Thursday, March 23 at 9 p.m. ET.



    CNN
     — 

    At a Harvard Business Review conference earlier this month, where executives, professors and artists appeared for talks on corporate leadership and emotional intelligence, Shou Chew attempted to save his company.

    In his talk, Chew, the CEO of TikTok, said the social network would not provide US user data to the Chinese government and has never been asked to do so. Chew stressed the steps TikTok has taken to protect US user data. And four separate times, Chew told the audience that the platform’s mission was to “inspire creativity and bring joy” to users.

    The Harvard event is just one of several media appearances Chew has made in recent weeks amid mounting scrutiny of TikTok and of himself. Chew is set to testify on Thursday for the first time before a Congressional committee about “TikTok’s consumer privacy and data security practices, the platforms’ impact on kids, and its relationship with the Chinese Communist Party,” according to a statement last week from the committee. Meanwhile, federal officials are now demanding the app’s Chinese owners sell their stake in the social media platform, or risk facing a US ban of the app.

    Chew, a Singaporean who has largely stayed out of the spotlight since taking over TikTok in 2021, recently sat for interviews with multiple US newspapers and this week showed up in a video on the corporate TikTok account to highlight the vast reach of the app, which he revealed now has more than 150 million users in the United States.

    “That’s almost half the US coming to TikTok to connect, to create, to share, to learn, or just to have some fun,” said Chew, wearing in a hoodie and t-shirt like any other American tech executive in the clip. “This comes at a pivotal moment for us. Some politicians have started talking about banning TikTok, now this could take TikTok away from all 150 million of you.”

    Chew’s heightened visibility appears to be part of a larger messaging campaign by TikTok to bolster its reputation in the US and remind voters – and their representatives – how essential the social network is to American culture.

    A press conference is planned for Wednesday with dozens of social media creators on the steps of the Capitol, some of whom have been flown out there by TikTok. The company is paying for a blitz of advertisements for a Beltway audience. And last week it put out a docuseries highlighting American small business owners who rely on the platform for their livelihoods.

    Behind the scenes, Chew has also met with members of Congress and TikTok recently invited researchers and academics to its Washington, D.C., offices to learn more about how it is working to address lawmakers concerns over its ties to China through its parent company, ByteDance. Its parent company has also ramped up federal lobbying, spending more than $5 million last year, according to data tracked by OpenSecrets.

    “It’s life or death for TikTok, from their perspective,” said Justin Sherman, the CEO of Global Cyber Strategies, D.C.-based research and advisory firm, who was among the researchers TikTok invited to be briefed on “Project Texas,” the company’s $1.5 billion initiative to address lawmakers’ security concerns. “They are throwing everything they can at the problem.”

    In a statement, TikTok spokesman Jamal Brown said: “A U.S. ban on TikTok could have a direct impact on the livelihoods of millions of Americans. Lawmakers in Washington debating TikTok should hear firsthand from people whose lives would be directly affected by their decisions.”

    For much of the past year, TikTok has been rolling out new features and policies to address privacy and security concerns that the Chinese government could gain access to US user data, as well as broader fears that its app, like other social platforms, can be harmful to some younger users.

    TikTok recently set a default one-hour daily screen time limit on every account for users under 18 in one of the most aggressive moves yet by a social media company to prevent teens from endlessly scrolling. It rolled out a feature that aimed to offer more information to users about why its powerful algorithm recommends certain videos. And the company pledged more transparency to researchers.

    Facing concerns about its parent company’s ties to China, TikTok has also taken a number of steps to more clearly separate its US operations and user data from other parts of the organization. That includes moving all its US user data to Oracle’s cloud platform, where it says it hosts “100% of US user traffic.”

    The messaging campaign has only ramped up this week ahead of the hearing. TikTok rolled out refreshed Community Guidelines for content, which the company framed as being “based on our commitment to uphold human rights and aligned with international legal frameworks.” And Chew once again stressed TikTok’s independence from China.

    “I understand that there are concerns stemming from the inaccurate belief that TikTok’s corporate structure makes it beholden to the Chinese government or that it shares information about U.S. users with the Chinese government,” Chew said in prepared remarks ahead of his testimony before Congress. “This is emphatically untrue.”

    At the same time, TikTok is now betting on a strategy from American tech companies who have faced scrutiny for other reasons, playing up the impact it has on small businesses in the United States, including with the CEO’s prepared remarks and a mini docuseries it released last week titled “TikTok Sparks Good.”

    The series spotlighted inspiring stories of American small business owners and creators. The first of the 60-second clips features a Mississippi soap maker with a deep Southern accent who built her company on the app, and the second features an educator who quit his job to focus on sharing informational videos on TikTok aimed at teaching toddlers how to read.

    “Because of TikTok, I’m reaching millions of families who want to teach their toddlers how to read,” the educator says.

    Dozens of TikTok creators who oppose a ban will also be holding a press conference on Capitol grounds on Wednesday evening with Congressman Jamaal Bowman, a Democrat from New York. TikTok flew out some of the creators, the company confirmed to CNN. (The Information was first to report the move.)

    The list of expected attendees includes a disabled Asian American creator using her platform to combat ableism, a small business owner from South Carolina who launched a greeting card company via TikTok, and an Ohio-based chef who built her bakery business via the app. Some of the creators have hundreds of thousand or even millions of followers on TikTok.

    Even with these efforts, Sherman expressed some skepticism about how persuasive the PR push will be, mostly because of how divided Washington is right now.

    “Not everyone wants a ban,” he said. “For some lawmakers, it will matter that TikTok is taking all these steps to address security concerns.”

    But for others, it won’t move the needle. “Some lawmakers, frankly, do not care what ads TikTok is taking out, what pledges it’s making on its blog about independence, data privacy … They see an unmitigable risk of Chinese government access to data and/or influence over content, and so are going to push for a complete ban.”

    Lindsay Gorman, a senior fellow for emerging technologies at the German Marshall Fund’s Alliance for Securing Democracy and a former Biden administration adviser, said that “by and large, TikTok’s lobbying efforts so far have been pretty ineffective.”

    The problem, she said, is two-fold. First, even if TikTok takes steps to bolster its safeguards today, as it has been doing with Project Texas, concerns remain that it’s always “one update away from becoming a vulnerability.” And second, TikTok’s PR efforts in Washington won’t undo previous moments when the company “shot itself in the foot” by making what she said were “inaccurate statements” to Congress, “and then having revelations come out showing that those were inaccurate.”

    After the initial, Trump-era calls for a TikTok ban appeared to fade in Washington, BuzzFeed reported in 2021 that US user data was repeatedly accessed from China and that “everything is seen in China.” The details in the report were seemingly at odds with remarks a TikTok executive gave before a Senate panel earlier that year, claiming that a US-based security team decides who can access US user data from China. Following the report, TikTok once again became a hot button issue in the nation’s capital.

    But even as suspicion among US lawmakers grew, so did the app’s popularity in the country.

    “I do think TikTok’s strongest argument to date is drawing on its creator user base,” Gorman said. But for some lawmakers with security concerns, the latest push “may be too little too late.”

    In his TikTok video on Tuesday, Chew appealed directly to users of the app. The CEO asked them to write in the comments section to share “what you want your elected representatives to know about what you love about TikTok.”

    The top comment on the clip, which has received upwards of 50,000 likes, simply reads: “You know something went wrong when the boss has to show up 😂”

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  • After TikTok chief’s grilling in Washington, Apple’s Tim Cook is all smiles in Beijing | CNN Business

    After TikTok chief’s grilling in Washington, Apple’s Tim Cook is all smiles in Beijing | CNN Business

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    Hong Kong
    CNN
     — 

    Apple

    (AAPL)     CEO Tim Cook gave a show of support for China as a market and manufacturing base during a visit to Beijing Saturday, even as trade and tech sector tensions escalate between the United States and the world’s second-largest economy.

    Apple and China had “grown together” over the past three decades, Cook told the government-organized China Development Forum, adding that he was thrilled to be back in the country, which only reopened its borders this year after abandoning its strict zero-Covid policy. The last time Cook visited China was in 2019.

    “We have a very large supply chain in China. We also have a thriving App Store,” the Apple chief was quoted as saying in state-run China Daily.

    Cook’s visit has raised eyebrows in some quarters, given the ongoing tech battle between the United States and China and reports that Apple has been looking to India as a potential alternative production base.

    On Friday, Cook had posted a picture of himself smiling with customers and staff at the Apple store in the shopping district of Sanlitun on China’s Twitter-like social media site Weibo.

    That post came just a day after Shou Zi Chew, the CEO of TikTok was grilled in a five-hour hearing before a Congressional committee in Washington, where US lawmakers remain convinced the Chinese-made social media app represents an urgent threat to national security.

    China’s state media was quick to seize on the apparent contrast between the two CEO’s experiences.

    “TikTok CEO was under siege at the US hearing, while Apple CEO was enthusiastically welcomed by people at its flagship Chinese store. This shows that China is the one that is actually practicing fair and free trade,” the state-run Global Times quoted one netizen as saying.

    The Biden administration has demanded that the Chinese owners of TikTok sell their share of the company or face a ban from the United States, the app’s most important market. China’s commerce ministry said Thursday that a forced sale of TikTok would “seriously damage” global investors’ confidence in the United States.

    The US has concerns about the company’s data collection practices, and these have been exacerbated by the popularity of TikTok and other Chinese apps. Of the 10 most popular free apps on Apple’s US store, four were developed with Chinese technology: TikTok, shopping app Temu, fast fashion retailer Shein and video editing app CapCut, which like TikTok is also owned by ByteDance.

    Apple meanwhile has reportedly been rethinking the extent of its ties with China.

    The company’s supply chains were disrupted by China’s harsh coronavirus rules and there have been violent protests over wages at the world’s largest iPhone assembly factory at Foxconn’s campus in China’s Henan province.

    Amid these problems, and wider trade disagreements between Washington and Beijing, Apple has reportedly been looking at India as a potential alternative manufacturing hub for the iPhone 14.

    However, many analysts say that even if Apple can add diversity to its supply base it is likely to continue to depend on China for a long time yet.

    Cook said in an earnings call last year that India was a “hugely exciting market” and “a major focus” for Apple that recorded “very strong double digits year over year,” indicating its high interest to expand production in the South Asian country.

    While the rising US-China tensions have led to suggestions the world’s two largest economies could “decouple,” recent data shows trade between them hit a record high in 2022.

    Bilateral goods trade between the countries rose to $690.6 billion last year, according to official US data.

    Exports to China increased by $2.4 billion to $153.8 billion, while imports of Chinese products rose by $31.8 billion to $536.8 billion according to the US Bureau of Economic Analysis.

    The data suggests that the idea of “decoupling,” or reducing mutual reliance in a range of areas, is much more evident in policy discussions in Washington rather than on-the-ground trade reality.

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  • TikTok collects a lot of data. But that’s not the main reason officials say it’s a security risk | CNN Business

    TikTok collects a lot of data. But that’s not the main reason officials say it’s a security risk | CNN Business

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    CNN
     — 

    After TikTok CEO Shou Chew testified for more than five hours on Thursday before a Congressional committee, one thing was clear: US lawmakers remain convinced that TikTok is an urgent threat to national security.

    The hearing, Chew’s first appearance before Congress, kicked off with a lawmaker calling for TikTok to be banned and remained combative throughout. A number of lawmakers expressed deep skepticism about TikTok’s efforts to safeguard US user data and ease concerns about its ties to China. Nothing Chew said appeared to move the needle.

    The rhetoric inside and outside the hearing room highlighted the growing, bipartisan momentum for cracking down on the app in the United States. As the hearing was taking place, House Speaker Kevin McCarthy said he supports legislation that would effectively ban TikTok; Secretary of State Antony Blinken said TikTok should be “ended one way or another,” and the Treasury Department issued a statement vowing to “safeguard national security,” without mentioning TikTok by name.

    Concerns about TikTok’s connections to China have led governments worldwide to ban the app on official devices, and those fears have factored into the increasingly tense US-China relationship. But the remarks across the federal government on Thursday, combined with a prior threat from the Biden administration to impose a nationwide ban unless TikTok’s Chinese owners sell their stakes, shows that a complete ban of the hugely popular app very much remains a live possibility.

    However, more than two years after the Trump administration first issued a similar threat to TikTok, evidence remains unclear about whether the app is a national security threat. Security experts say the government’s fears, while serious, currently appear to reflect only the potential for TikTok to be used for foreign intelligence, not that it has been. There is still no public evidence the Chinese government has actually spied on people through TikTok.

    TikTok doesn’t operate in China. But since the Chinese government enjoys significant leverage over businesses under its jurisdiction, the theory goes that ByteDance, and thus indirectly, TikTok, could be forced to cooperate with a broad range of security activities, including possibly the transfer of TikTok data.

    “It’s not that we know TikTok has done something, it’s that distrust of China and awareness of Chinese espionage has increased,” said James Lewis, an information security expert at the Center for Strategic and International Studies. “The context for TikTok is much worse as trust in China vanishes.”

    When Rob Joyce, the National Security Agency’s director of cybersecurity, was asked by reporters in December to articulate his security concerns about TikTok, he offered a general warning rather than a specific allegation.

    “People are always looking for the smoking gun in these technologies,” Joyce said. “I characterize it much more as a loaded gun.”

    Technical experts also draw a distinction between the TikTok app — which appears to operate very similarly to American social media in the amount of user tracking and data collection it performs — and TikTok’s approach to governance and ownership. It’s the latter that’s been the biggest source of concern, not the former.

    The US government has said it’s worried China could use its national security laws to access the significant amount of personal information that TikTok, like most social media applications, collects from its US users.

    The laws in question are extraordinarily broad, according to western legal experts, requiring “any organization or citizen” in China to “support, assist and cooperate with state intelligence work,” without defining what “intelligence work” means.

    Should Beijing gain access to TikTok’s user data, one concern is that the information could be used to identify intelligence opportunities — for example, by helping China uncover the vices, predilections or pressure points of a potential spy recruit or blackmail target, or by building a holistic profile of foreign visitors to the country by cross-referencing that data against other databases it holds. Even if many of TikTok’s users are young teens with seemingly nothing to hide, it’s possible some of those Americans may grow up to be government or industry officials whose social media history could prove useful to a foreign adversary.

    Another concern is that if China has a view into TikTok’s algorithm or business operations, it could try to exert pressure on the company to shape what users see on the platform — either by removing content through censorship or by pushing preferred content and propaganda to users. This could have enormous repercussions for US elections, policymaking and other democratic discourse.

    Security experts say these scenarios are a possibility based on what’s publicly known about China’s laws and TikTok’s ownership structure, but stress that they are hypothetical at best. To date, there is no public evidence that Beijing has actually harvested TikTok’s commercial data for intelligence or other purposes.

    Chew, the TikTok CEO, has publicly said that the Chinese government has never asked TikTok for its data, and that the company would refuse any such request. In Thursday’s hearing, Chew said that what US officials fear is a hypothetical scenario that has not been proven.

    “I think a lot of risks that are pointed out are hypothetical and theoretical risks,” Chew said. “I have not seen any evidence. I am eagerly awaiting discussions where we can talk about evidence and then we can address the concerns that are being raised.”

    If there’s a risk, it’s primarily concentrated in the relationship between TikTok’s Chinese parent, ByteDance, and Beijing. The main issue is that the public has few ways of verifying whether or how that relationship, if it exists, might have been exploited.

    TikTok has been erecting technical and organizational barriers that it says will keep US user data safe from unauthorized access. Under the plan, known as Project Texas, the US government and third-party companies such as Oracle would also have some degree of oversight of TikTok’s data practices. TikTok is working on a similar plan for the European Union known as Project Clover.

    But that hasn’t assuaged the doubts of US officials. Multiple lawmakers at the hearing specifically said they were not persuaded by Project Texas. That’s likely because no matter what TikTok does internally, China would still theoretically have leverage over TikTok’s Chinese owners. Exactly what that implies is ambiguous, and because it is ambiguous, it is unsettling.

    In congressional testimony, TikTok has sought to assure US lawmakers it is free from Chinese government influence, but it has not spoken to the degree that ByteDance may be susceptible. TikTok has also acknowledged that some China-based employees have accessed US user data, though it’s unclear for what purpose, and it has disclosed to European users that China-based employees may access their data as part of doing their jobs.

    Multiple privacy and security researchers who’ve examined TikTok’s app say there aren’t any glaring flaws suggesting the app itself is currently spying on people or leaking their information.

    In 2020, The Washington Post worked with a privacy researcher to look under the hood at TikTok, concluding that the app does not appear to collect any more data than your typical mainstream social network. The following year, Pellaeon Lin, a Taiwan-based researcher at the University of Toronto’s Citizen Lab, performed another technical analysis that reached similar conclusions.

    But even if TikTok collects about the same amount of information as Facebook or Twitter, that’s still quite a lot of data, including information about the videos you watch, comments you write, private messages you send, and — if you agree to grant this level of access — your exact geolocation and contact lists. TikTok’s privacy policy also says the company collects your email address, phone number, age, search and browsing history, information about what’s in the photos and videos you upload, and if you consent, the contents of your device’s clipboard so that you can copy and paste information into the app.

    TikTok’s source code closely resembles that of its China-based analogue, Douyin, said Lin in an interview. That implies both apps are developed on the same code base and customized for their respective markets, he said. Theoretically, TikTok could have “privacy-violating hidden features” that can be turned on and off with a tweak to its server code and that the public might not know about, but the limitations of trying to reverse-engineer an app made it impossible for Lin to find out whether those configurations or features exist.

    If TikTok used unencrypted communications protocols, or if it tried to access contact lists or precise geolocation data without permission, or if it moved to circumvent system-level privacy safeguards built into iOS or Android, then that would be evidence of a problem, Lin said. But he found none of those things.

    “We did not find any overt vulnerabilities regarding their communication protocols, nor did we find any overt security problems within the app,” Lin said. “Regarding privacy, we also did not see the TikTok app exhibiting any behaviors similar to malware.”

    TikTok has cited Lin’s research as part of its defense. But Citizen Lab came out swinging this week at the company’s characterizations of the paper, saying in a statement that TikTok has presented the research as “somehow exculpatory” when a key finding was that Lin couldn’t see what happens to user data after it is collected.

    Chew, in a rare moment of apparent frustration, told lawmakers at the hearing that TikTok and Citizen Lab were really saying a version of the same thing. “Citizen Lab is saying they cannot prove a negative, which is what I’ve been trying to do for the last four hours,” he said.

    TikTok has faced claims that its in-app browser tracks its users’ keyboard entries, and that this type of conduct, known as keylogging, could be a security risk. The privacy researcher who performed the analysis last year, Felix Krause, said that keylogging is not an inherently malicious activity, but it theoretically means TikTok could collect passwords, credit card information or other sensitive data that users may submit to websites when they visit them through TikTok’s in-app browser.

    There is no public evidence TikTok has actually done that, however. TikTok has said the keylogging function is used for “debugging, troubleshooting, and performance monitoring,” as well as to detect bots and spam. Other research has shown that the use of keyloggers is extremely widespread in the technology industry. That does not necessarily excuse TikTok or its peers for using a keylogger in the first place, but neither is it proof positive that TikTok’s product, by itself, is any more of a national security threat than other websites.

    There have also been a number of studies that report TikTok is tracking users around the internet even when they are not using the app. By embedding tracking pixels on third-party websites, TikTok can collect information about a website’s visitors, the studies have found. TikTok has said it uses the data to bolster its advertising business. And in this respect, TikTok is not unique: the same tool is used by US tech giants including Facebook-parent Meta and Google on a far larger scale, according to Malwarebytes, a leading cybersecurity firm.

    At the hearing, Chew said the company does keystroke logging to “identify bots,” not to track what users say. He also repeatedly noted that TikTok does not collect more user data than most of its peers in the industry.

    As with the keylogging tech, the fact TikTok uses tracking pixels does not on its own transform the company into a national security threat; the risk is that the Chinese government could compel or influence TikTok, through ByteDance, to abuse its data collection capabilities.

    Separately, a report last year found TikTok was spying on journalists, snooping on their user data and IP addresses to find out when or if certain reporters were sharing the same location as company employees. TikTok later confirmed the incident and ByteDance fired several employees who had improperly accessed the TikTok data of two journalists.

    The circumstances surrounding the incident suggest it was not the type of wide-scale, government-directed intelligence effort that US national security officials primarily fear. Instead, it appeared to be part of a specific internal effort by some ByteDance employees to hunt down leaks to the press, which may be deplorable but hardly uncommon for an organization under public scrutiny. (Nevertheless, the US government is reportedly investigating the incident.)

    Joyce, the NSA’s top cyber official, told reporters in December that what he really worries about is “large-scale influence” campaigns leveraging TikTok’s data, not “individualized targeting through [TikTok] to do malicious things.”

    To date, however, there’s no public evidence of that taking place.

    TikTok may collect an extensive amount of data, much of it quietly, but as far as researchers can tell, it isn’t any more invasive or illegal than what other US tech companies do.

    According to security experts, that’s more a reflection of the broad leeway we’ve given to tech companies in general to handle our data, not an issue that’s unique or specific to TikTok.

    “We have to trust that those companies are doing the right thing with the information and access we’ve provided them,” said Peiter “Mudge” Zatko, a longtime ethical hacker and Twitter’s former head of security who turned whistleblower. “We probably shouldn’t. And this comes down to a concern about the ultimate governance of these companies.”

    Lin told CNN that TikTok and other social media companies’ appetite for data highlights policy failures to pass strong privacy laws that regulate the tech industry writ large.

    “TikTok is only a product of the entire surveillance capitalism economy,” Lin said. “And governments around the world are ignoring their duty to protect citizens’ private information, allowing big tech companies to exploit user information for gain. Governments should try to better protect user information, instead of focusing on one particular app without good evidence.”

    Asked how he would advise policymakers to look at TikTok instead, Lin said: “What I would call for is more evidence-based policy.”

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  • Utah governor signs bill requiring teens to get parental approval to join social media sites | CNN Business

    Utah governor signs bill requiring teens to get parental approval to join social media sites | CNN Business

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    New York
    CNN
     — 

    The governor of Utah signed a controversial bill on Thursday that will require minors to obtain the consent of a guardian before joining social media platforms, marking the most aggressive step yet by state or federal lawmakers to protect kids online.

    As part of the bill, called the Utah Social Media Regulation Act, social media platforms will have to conduct age verification for all Utah residents, ban all ads for minors and impose a curfew, making their sites off limits between the hours of 10:30 p.m. – 6:30 a.m. for anyone under the age of 18. The bill will also require social platforms to give parents access to their teens’ accounts.

    The legislation, which was introduced by Republican Sen. Michael McKell and passed by Republican Governor Spencer Cox, will go into effect on March 1, 2024.

    “When it comes down to it, [the bill] is about protecting our children,” McKell said in a statement to CNN, citing how depression, anxiety and suicidal ideation has “drastically increased” among teens in Utah and across the United states Slongside the growth of social media sites. “As a lawmaker and parent, I believe this bill is the best path forward to prevent our children from succumbing to the negative and sometimes life-threatening effects of social media.”

    The legislation comes after years of US lawmakers calling for new safeguards to protect teens online, amid concerns about social platforms leading younger users down harmful rabbit holes, enabling new forms of bullying and harassment and adding to what’s been described as a teen mental health crisis in the country. To date, however, no federal legislation has passed.

    Utah is the first of a broader list of states introducing similar proposals. In Connecticut and Ohio, for example, lawmakers are working to pass legislation that would require social media companies to get parent permission before users under age 16 can join.

    “We can assume more methods like the Utah bill could find their way into other states’ plans, especially if actions are not taken at the federal level,” said Michael Inouye, an analyst at ABI Research. “Eventually, if enough states implement similar or related legislation, we could see a more concerted effort at the federal level to codify these (likely) disparate state laws under a US-wide policy.”

    Industry experts and Big Tech companies have long urged the US government to introduce regulations that could help keep young social media users safe. But even before the bill’s passage, some had raised concerns about the impact of the legislation. The Electronic Frontier Foundation, a digital rights group, said Utah’s specific set of rules are “dangerous” when it comes to user privacy and added that the bill will make user data less secure, internet access less private and infringe upon younger users’ basic rights.

    “Social media provides a lifeline for many young people, in addition to community, education, and conversation,” said Jason Kelley, director of activism at the EFF. “They use it in part because it can be private … The law, which would limit social media access and require parental consent and monitoring for minors, will incalculably harm the ability of young people to protect their privacy and deter them from exercising their rights.”

    Lucy Ivey, an 18-year-old TikTok influencer who attends Utah Valley University, agreed, saying some of her friends in the LGBTQ community may face challenges with the change.

    “My worry with this bill is that it will take away privacy from teenagers, and a lot of kids don’t have good relationships with their parents or don’t have a reliable guardian that would be needed to get access to social media,” she told CNN. “I think about my LGBTQ friends; some who have had a hard time with their parents because of their sexuality or identity, and they could be losing an important place where they can be themselves, and be seen and heard.”

    Ivey, who launched a publication called Our Era at age 15 and amplified its content on TikTok, said she’s also concerned about how the bill will impact content creators like herself. (If a legal guardian disapproves of a teens’ online activity or digital presence, those individuals may have to put their accounts on hold until they are 18 years old.)

    “With a new law like this, they may now be intimidated and discouraged by the legal hoops required to use social media out of fear of authority or their parents, or fear of losing their privacy at a time when teens are figuring out who they are,” Ivey said.

    Facebook-parent Meta told CNN it has the same goals as parents and policymakers, but the company said it also wants young people to have safe, positive experiences online and keep its platforms accessible. Antigone Davis, the global head of safety for Meta, said the company will “continue to work closely with experts, policymakers and parents on these important issues.”

    Representatives for TikTok and Snap did not respond to a request for comment.

    Given that the bill is unprecedented, it’s unclear how exactly the social media companies will adapt. For example, the legislation calls for platforms to turn off algorithms for “suggested content.” This particular guideline may help keep teens from falling down rabbit holes toward potentially harmful content, but it could present new issues, too. It might mean the company would no longer have the oversight and control over downranking problematic content that may show up in a user’s feed.

    Some of the bill’s guidelines may also be difficult to enforce. Inouye said minors could “steal” identities – such as from family members who don’t use social media – to create accounts that they can access and use without oversight. VPNs could also complicate matching IP addresses to the states of the users, he said.

    But even if legislative steps from Utah and other states prove to be flawed, Inouye says “these early efforts are at minimum bringing attention to these issues.”

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  • TikTok CEO testifies before Congress for the first time | CNN Business

    TikTok CEO testifies before Congress for the first time | CNN Business

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    CNN
     — 

    TikTok CEO Shou Chew made his first appearance before Congress on Thursday and was immediately hit by intense criticism from lawmakers, including calls for the app to be banned.

    Rep. Cathy McMorris Rodgers, the chair of the House Energy and Commerce Committee, opened Thursday’s hearing by tearing into TikTok, and telling Shou: “Your platform should be banned.”

    “I expect today you’ll say anything to avoid this outcome,” she continued. “We aren’t buying it. In fact, when you celebrate the 150 million American users on TikTok, it emphasizes the urgency for Congress to act. That is 150 million Americans that the [Chinese Communist Party] can collect sensitive information on.”

    In his opening remarks, Chew attempted to stress TikTok’s independence from China and played up its US ties. “TikTok itself is not available in mainland China, we’re headquarterd in Los Angeles and Singapore, and we have 7,000 employees in the U.S. today,” he said.

    “Still, we have heard important concerns about the potential for unwanted foreign access to US data and potential manipulation of the TikTok US ecosystem,” Chew said. “Our approach has never been to dismiss or trivialize any of these concerns. We have addressed them with real action.

    Chew’s moment in the hot seat comes as some lawmakers are renewing calls for the app to be banned in the United States due to perceived national security concerns because of its ties to China through its parent company, ByteDance. TikTok acknowledged to CNN last week that federal officials are demanding the app’s Chinese owners sell their stake in the social media platform, or risk facing a US ban of the app. A number of countries, including the US, have already instituted a ban of the app on government devices due to the security concerns.

    TikTok doesn’t operate in China. But since the Chinese government enjoys significant leverage over businesses under its jurisdiction, the theory goes that ByteDance, and thus indirectly, TikTok, could be forced to cooperate with a broad range of security activities, including possibly the transfer of TikTok data.

    With his appearance, Chew may hope to reassure Americans and temper the heated rhetoric in Washington about the app – but the first two hours of the hearing showed just how challenging a task that might be.

    Much of Chew’s attempts to stress that his company is not an arm of the Chinese government appeared to fall on deaf ears. Numerous members of Congress interrupted the chief executive’s testimony to say they simply don’t believe him.

    “To the American people watching today, hear this: TikTok is a weapon by the Chinese Communist Party to spy on you, manipulate what you see and exploit for future generations,” said Rep. McMorris Rodgers.

    In an exchange with Rep. Anna Eshoo, Chew talked up TikTok’s ongoing efforts to protect US user data and said he has “seen no evidence that the Chinese government has access to that data; they have never asked us, we have not provided it.”

    “I find that actually preposterous,” Eshoo fired back.

    “I have looked in — and I have seen no evidence of this happening,” Chew responded. “Our commitment is to move their data into the United States, to be stored on American soil by an American company, overseen by American personnel. So the risk would be similar to any government going to an American company, asking for data.”

    “I don’t believe that TikTok — that you have said or done anything to convince us,” Eshoo said.

    Perhaps no exchange sums up Thursday’s hearing like a moment following Rep. Kat Cammack’s lengthy critique of TikTok’s content moderation and links to China.

    “Can I respond, Chair?” Chew asked McMorris Rodgers after Cammack’s time was up.

    McMorris Rodgers considered Chew for a brief moment.

    “No. We’re going to move on,” she said.

    As lawmakers doubled down on their questions about TikTok’s data collection practices, Chew also emphasized that the data TikTok collects is data “that’s frequently collected by many other companies in our industry.”

    “We are committed to be very transparent with our users about what we collect,” Chew said. “I don’t believe what we collect is more than most players in the industry.”

    Independent researchers have backed Chew’s assertions. In 2020, The Washington Post worked with a privacy researcher to look under the hood at TikTok, concluding that the app does not appear to collect any more data than your typical mainstream social network. The following year, Pellaeon Lin, a Taiwan-based researcher at the University of Toronto’s Citizen Lab, performed another technical analysis that reached similar conclusions.

    Still, even if TikTok collects about the same amount of information as Facebook or Twitter, that’s still quite a lot of data, including information about the videos you watch, comments you write, private messages you send, and — if you agree to grant this level of access — your exact geolocation and contact lists.

    While national security was expected to be the primary focus of the hearing, multiple lawmakers also highlighted concerns about TikTok’s impact on children.

    Democratic ranking member of the committee Rep. Frank Pallone, for example, said Thursday: “Research has found that TikTok’s algorithms recommend videos to teens that create and exacerbate feelings of emotional distress, including videos promoting suicide, self-harm and eating disorders.”

    Rep. Bob Latta, a Republican from Ohio, accused TikTok of promoting a video on the so-called “blackout challenge” or choking challenge to the feed of a 10-year-old girl from Pennsylvania, who later died after trying to mimic the challenge in the video.

    Republican Rep. Gus Bilirakis of Florida also said there is a lack of adequate content moderation, which leaves room for kids to be exposed to content that promotes self harm.

    “Your technology is literally leading to death,” Bilirakis said to TikTok CEO Shou Chew.

    Citing examples of harmful content served to children, he said, “it is unacceptable, sir, that even after knowing all these dangers, you still claim that TikTok is something grand to behold.”

    TikTok, for its parts, has launched a number of features in recent months to provide additional safeguards for younger users, including setting a new 60-minute default for daily time limit for those under the age of 18. Even that feature, however, was criticized by lawmakers as being too easy for teens to bypass.

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  • Why Bucks County, Pennsylvania, is suing social media companies | CNN Business

    Why Bucks County, Pennsylvania, is suing social media companies | CNN Business

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    CNN
     — 

    One mother in Bucks County, Pennsylvania, said her 18-year-old daughter is so obsessed with TikTok, she’ll spend hours making elaborate videos for the Likes, and will post retouched photos of herself online to look skinnier.

    Another mother in the same county told CNN her 16-year-old daughter’s ex-boyfriend shared partially nude images of the teen with another Instagram user abroad via direct messages. After a failed attempt at blackmailing the family, the user posted the pictures on Instagram, according to the mother, with some partial blurring of her daughter’s body to bypass Instagram’s algorithms that ban nudity.

    “I worked so hard to get the photos taken down and had people I knew from all over the world reporting it to Instagram,” the mother said.

    The two mothers, who spoke with CNN on condition of anonymity, highlight the struggles parents face with the unique risks posed by social media, including the potential for online platforms to lead teens down harmful rabbit holes, compound mental health issues and enable new forms of digital harassment and bullying. But on Friday, their hometown of Bucks County became what’s believed to be the first county in the United States to file a lawsuit against social media companies, alleging TikTok, Instagram, YouTube, Snapchat and Facebook have worsened anxiety and depression in young people, and that the platforms are designed to “exploit for profit” their vulnerabilities.

    “Like virtually everywhere in the United States now … Bucks County’s youth suffer from a high degree of distraction, depression, suicidality, and other mental disorders, caused or worsened by the overconsumption of social media on a daily basis, which substantially interferes with the rights of health and safety common to the general public,” the lawsuit alleged.

    The lawsuit, which was filed in California federal court, said “the need is great” to continue to fund mental health outpatient programs, mobile crisis units, family-based mental health services, and in-school mental health programming and training to address the mental health of young people. Bucks County is seeking unspecified monetary damages to help fund these initiatives.

    Bucks County is joining a small but growing number of of school districts and families who have filed lawsuits against social media companies for their alleged impact on teen mental health. The unusual legal strategy comes amid broader concerns about a mental health crisis among teens and hints at the urgency parents and educators feel to force changes in how online platforms operate at a time when legislative remedies have been slow in coming.

    Seattle’s public school system, which is the largest in the state of Washington with nearly 50,000 students, and San Mateo County in California have each filed lawsuits against several Big Tech companies, claiming the platforms are harming their students’ mental health. Some families have also filed wrongful death lawsuits against tech platforms, alleging their children’s social media addiction contributed to their suicides.

    “I want to hold these companies accountable,” Bucks County district attorney Matthew Weintraub told CNN. “It is no different than opioid manufacturers and distributors causing havoc among young people in our communities.”

    He believes he has an actionable cause to file a lawsuit “because the companies have misrepresented the value of their products.”

    “They said their platforms are not addictive, and they are; they said they are helpful and not harmful, but they are harmful,” he said. “My hope is that there will be strength in numbers and other people from around the country will join me so there will be a tipping point. I just can’t sit around and let it happen.”

    In response to the lawsuit, Antigone Davis, the global head of safety for Instagram and Facebook-parent Meta, said the company continues to pour resources into ensuring its young users are safe online. She added that the platforms have more than 30 tools to support teens and families, including supervision tools that let parents limit the amount of time their teens spend on Instagram, and age-verification technology that helps teens have age-appropriate experiences.

    “We’ll continue to work closely with experts, policymakers and parents on these important issues,” she said.

    Google spokesperson José Castañeda said it has also “invested heavily in creating safe experiences for children across our platforms and have introduced strong protections and dedicated features to prioritize their well being.” He pointed to products such as Family Link, which provides parents with the ability to set reminders, limit screen time and block specific types of content on supervised devices.

    A Snap spokesperson said it is “constantly evaluating how we continue to make our platform safer, including through new education, features and protections.”

    TikTok did not respond to a request for comment.

    The latest lawsuit comes nearly a year and a half after executives from several social media platforms faced tough questions from lawmakers during a series of congressional hearings over how their platforms may direct younger users — particularly teenage girls — to harmful content, damaging their mental health and body image. Since then, some lawmakers have called for legislation to protect kids online, but nothing has passed at the federal level.

    Carl Tobias, a professor at the University of Richmond School of Law, believes it will be “difficult” for counties and school districts to win lawsuits against social media companies.

    “There will be the issues of showing that the social media content was the cause of the harm that befell the children,” he said. “But that doesn’t mean they shouldn’t file these lawsuits.”

    Tobias added that increased support for government regulation that would impose more restrictions on companies could impact the outcome of these lawsuits in their favor.

    “For now, there will be different judges or juries with diverse views of this around the country,” he said. “They aren’t going to win all of the cases but they might win some of them, and that might help.”

    Whatever the outcome, the mother of the 16-year-old whose intimate photos were shared on Instagram is applauding the district attorney’s office for sending a strong message to social media companies.

    “Before the incident with my daughter, I would not have given a lawsuit filed by the county much thought,” she said. “But now that I know how hard it was to take content down and there’s only so much people can do; corporations need to do so much more to protect its users.”

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  • DeSantis needles Trump as he breaks silence on hush money case | CNN Politics

    DeSantis needles Trump as he breaks silence on hush money case | CNN Politics

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    CNN
     — 

    Breaking his silence on Donald Trump’s legal troubles, Florida Gov. Ron DeSantis on Monday criticized the Manhattan district attorney who is pursuing charges against the former president and vowed his office would not be involved if the matter trickles into Trump’s adopted home state.

    But DeSantis, a rising rival for the 2024 Republican presidential nomination, stopped well short of offering support for the former president and instead seemed to poke fun at the situation Trump has found himself in as he attempts a political comeback and a third campaign for the White House. A grand jury is in the final stages of determining whether Trump should face charges over an alleged payment to adult film star Stormy Daniels related to a supposed affair.

    “I don’t know what goes into paying hush money to a porn star to secure silence over some type of alleged affair,” DeSantis said as laughter broke out at a news conference in Panama City, Florida. “I just, I can’t speak to that.”

    DeSantis added: “I’ve got real issues to deal with here in the state of Florida.”

    The dismissive quips traveled quickly across the state to Mar-a-Lago, where Trump has decamped while he awaits for word on the New York grand jury’s findings. His allies immediately started attacking DeSantis across social media, suggesting he would face a political price for failing to recognize Republicans are rallying around Trump amid his mounting legal threats.

    Trump responded in a statement posted to his social media site, Truth Social, leveling a series of personal attacks against DeSantis.

    “Ron DeSanctimonious will probably find out about FALSE ACCUSATIONS & FAKE STORIES sometime in the future, as he gets older, wiser, and better known, when he’s unfairly and illegally attacked by a woman, even classmates that are ‘underage’ (or possibly a man!). I’m sure he will want to fight these misfits just like I do!” Trump wrote.

    As part of the post Trump also shared a photo that suggested DeSantis had behaved inappropriately with teenage girls while teaching history in Georgia in his early 20s, an image the former president previously shared on social media to go after the Florida governor.

    The episode Monday was illustrative of the increasingly fraught rivalry between two of the GOP’s biggest stars as they battle for party supremacy — one made more awkward by their proximity inside the Sunshine State. Trump has suggested his arrest is forthcoming, and if he is in Florida at that moment, it could require a coordinated effort by police in DeSantis’ state.

    DeSantis said he is not aware of any arrangements with local law enforcement regarding Trump, and he said he had “no interest in getting involved in some type of manufactured circus.”

    The delayed remarks by DeSantis stand in stark contrast to the forceful defense he offered on Trump’s behalf last August when federal authorities seized documents from the former president’s Palm Beach estate. Just hours after the raid, DeSantis on Twitter called the FBI search at Mar-a-Lago “another escalation in the weaponization of federal agencies against the regime’s political opponents, while people like Hunter Biden get treated with kid gloves.”

    But there was no such tweet this time from DeSantis, who had remained quiet for days amid reports that a New York grand jury was interviewing witnesses and has largely avoided discussing Trump at all amid escalating attacks from the former president and his allies. DeSantis instead last week held events focused on relief for Hurricane Ian victims and the pandemic. He posted a picture from the World Baseball Classic picture standing next to the Miami Marlins mascot.

    Over the weekend, as other Republicans criticized Manhattan District Attorney Alvin Bragg, a Democrat, for pursuing charges in a case that dates back to the 2016 election, Trump allies engaged in a coordinated pressure campaign to get DeSantis to speak out in defense of the former president.

    “Thank you, Vice President @Mike_Pence and @VivekGRamaswamy, for pointing out how Radical Left Democrats are trying to divide our Country in the name of Partisan Politics,” Trump campaigdn adviser Jason Miller wrote on Twitter. “Radio silence from Gov. @RonDeSantisFL and Amb. @NikkiHaley.”

    Trump’s son, Donald Trump Jr., wrote in a tweet on Sunday: “Pay attention to which Republicans spoke out against this corrupt BS immediately and who sat on their hands and waited to see which way the wind was blowing.”

    MAGA, Inc sent several emails tracking which Republicans had commented on the potential criminal charges and hitting DeSantis for “remaining silent.” Trump allies acknowledged that this was a concerted effort to force DeSantis to weigh in on the matter, believing that he would have to offer support to Trump.

    When DeSantis finally weighed in Monday, it came during an unrelated press conference about central bank digital currencies, a recent area of concern among some conservatives but hardly the topic of the day, given the revelations about Trump’s legal case. He didn’t address Trump’s legal situation until asked by an individual from the Florida Standard, a conservative website friendly to DeSantis.

    DeSantis echoed other criticism of Bragg, accusing the Democrat of seeking charges against Trump for political reasons. He compared Bragg to the local state attorney in Tampa, Andrew Warren, who DeSantis controversially removed from office last year over his politics, and linked them both to George Soros, the Hungarian-born billionaire and progressive donor often at the center of conservative conspiracies.

    “If you have a prosecutor who is ignoring crimes happening every single day in his jurisdiction, and he chooses to go back many, many years ago to try to use something about porn star hush money payments, you know, that’s an example of pursuing a political agenda and weaponizing the office, and I think that that’s fundamentally wrong,” DeSantis said.

    But DeSantis also seemed to downplay Bragg’s pursuit of Trump as a lesser concern compared to issues related to crime in the city.

    “That’s bad, but the real victims are ordinary New Yorkers, ordinary Americans in all these different jurisdictions that they get victimized every day because of the reckless political agenda that the Soros DAs bring to their job,” he said. “They ignore crime and they empower criminals.”

    Haley weighed in later Monday, saying a prosecution of Trump would be “for political points.” The former South Carolina governor, who announced her White House campaign last month, told Fox News’ Bret Baier, “And I think what we know is that when you get into political prosecutions like this, it’s more about revenge than it is about justice.”

    “I think the country would be better off talking about things that the American public cares about than to sit there and have to deal with some revenge by some political people in New York,” added Haley, who served as ambassador to the United Nations under Trump.

    This story has been updated with additional information.

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  • Lawmakers say TikTok is a national security threat, but evidence remains unclear | CNN Business

    Lawmakers say TikTok is a national security threat, but evidence remains unclear | CNN Business

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    CNN
     — 

    As TikTok CEO Shou Zi Chew prepares for his first congressional grilling on Thursday, much of the focus will undoubtedly be on the short-form video app’s potential national security risks.

    Concerns about TikTok’s connections to China have led governments worldwide to ban the app on official devices, and those fears have factored into the increasingly tense US-China relationship. The Biden administration has threatened TikTok with a nationwide ban unless its Chinese owners sell their stakes in the company.

    But more than two years after the Trump administration first issued a similar threat to TikTok, security experts say the government’s fears, while serious, currently appear to reflect only the potential for TikTok to be used for foreign intelligence, not that it has been. There is still no public evidence the Chinese government has actually spied on people through TikTok.

    TikTok doesn’t operate in China. But since the Chinese government enjoys significant leverage over businesses under its jurisdiction, the theory goes that ByteDance, and thus indirectly, TikTok, could be forced to cooperate with a broad range of security activities, including possibly the transfer of TikTok data.

    “It’s not that we know TikTok has done something, it’s that distrust of China and awareness of Chinese espionage has increased,” said James Lewis, an information security expert at the Center for Strategic and International Studies. “The context for TikTok is much worse as trust in China vanishes.”

    When Rob Joyce, the National Security Agency’s director of cybersecurity, was asked by reporters in December to articulate his security concerns about TikTok, he offered a general warning rather than a specific allegation.

    “People are always looking for the smoking gun in these technologies,” Joyce said. “I characterize it much more as a loaded gun.”

    Technical experts also draw a distinction between the TikTok app — which appears to operate very similarly to American social media in the amount of user tracking and data collection it performs — and TikTok’s approach to governance and ownership. It’s the latter that’s been the biggest source of concern, not the former.

    The US government has said it’s worried China could use its national security laws to access the significant amount of personal information that TikTok, like most social media applications, collects from its US users.

    The laws in question are extraordinarily broad, according to western legal experts, requiring “any organization or citizen” in China to “support, assist and cooperate with state intelligence work,” without defining what “intelligence work” means.

    Should Beijing gain access to TikTok’s user data, one concern is that the information could be used to identify intelligence opportunities — for example, by helping China uncover the vices, predilections or pressure points of a potential spy recruit or blackmail target, or by building a holistic profile of foreign visitors to the country by cross-referencing that data against other databases it holds. Even if many of TikTok’s users are young teens with seemingly nothing to hide, it’s possible some of those Americans may grow up to be government or industry officials whose social media history could prove useful to a foreign adversary.

    Another concern is that if China has a view into TikTok’s algorithm or business operations, it could try to exert pressure on the company to shape what users see on the platform — either by removing content through censorship or by pushing preferred content and propaganda to users. This could have enormous repercussions for US elections, policymaking and other democratic discourse.

    Security experts say these scenarios are a possibility based on what’s publicly known about China’s laws and TikTok’s ownership structure, but stress that they are hypothetical at best. To date, there is no public evidence that Beijing has actually harvested TikTok’s commercial data for intelligence or other purposes.

    Chew, the TikTok CEO, has publicly said that the Chinese government has never asked TikTok for its data, and that the company would refuse any such request.

    If there’s a risk, it’s primarily concentrated in the relationship between TikTok’s Chinese parent, ByteDance, and Beijing. The main issue is that the public has few ways of verifying whether or how that relationship, if it exists, might have been exploited.

    TikTok has been erecting technical and organizational barriers that it says will keep US user data safe from unauthorized access. Under the plan, known as Project Texas, the US government and third-party companies such as Oracle would also have some degree of oversight of TikTok’s data practices. TikTok is working on a similar plan for the European Union known as Project Clover.

    But that hasn’t assuaged the doubts of US officials, likely because no matter what TikTok does internally, China would still theoretically have leverage over TikTok’s Chinese owners. Exactly what that implies is ambiguous, and because it is ambiguous, it is unsettling.

    In congressional testimony, TikTok has sought to assure US lawmakers it is free from Chinese government influence, but it has not spoken to the degree that ByteDance may be susceptible. TikTok has also acknowledged that some China-based employees have accessed US user data, though it’s unclear for what purpose, and it has disclosed to European users that China-based employees may access their data as part of doing their jobs.

    Multiple privacy and security researchers who’ve examined TikTok’s app say there aren’t any glaring flaws suggesting the app itself is currently spying on people or leaking their information.

    In 2020, The Washington Post worked with a privacy researcher to look under the hood at TikTok, concluding that the app does not appear to collect any more data than your typical mainstream social network. The following year, Pellaeon Lin, a Taiwan-based researcher at the University of Toronto’s Citizen Lab, performed another technical analysis that reached similar conclusions.

    But even if TikTok collects about the same amount of information as Facebook or Twitter, that’s still quite a lot of data, including information about the videos you watch, comments you write, private messages you send, and — if you agree to grant this level of access — your exact geolocation and contact lists. TikTok’s privacy policy also says the company collects your email address, phone number, age, search and browsing history, information about what’s in the photos and videos you upload, and if you consent, the contents of your device’s clipboard so that you can copy and paste information into the app.

    TikTok’s source code closely resembles that of its China-based analogue, Douyin, said Lin in an interview. That implies both apps are developed on the same code base and customized for their respective markets, he said. Theoretically, TikTok could have “privacy-violating hidden features” that can be turned on and off with a tweak to its server code and that the public might not know about, but the limitations of trying to reverse-engineer an app made it impossible for Lin to find out whether those configurations or features exist.

    If TikTok used unencrypted communications protocols, or if it tried to access contact lists or precise geolocation data without permission, or if it moved to circumvent system-level privacy safeguards built into iOS or Android, then that would be evidence of a problem, Lin said. But he found none of those things.

    “We did not find any overt vulnerabilities regarding their communication protocols, nor did we find any overt security problems within the app,” Lin said. “Regarding privacy, we also did not see the TikTok app exhibiting any behaviors similar to malware.”

    TikTok has faced claims that its in-app browser tracks its users’ keyboard entries, and that this type of conduct, known as keylogging, could be a security risk. The privacy researcher who performed the analysis last year, Felix Krause, said that keylogging is not an inherently malicious activity, but it theoretically means TikTok could collect passwords, credit card information or other sensitive data that users may submit to websites when they visit them through TikTok’s in-app browser.

    There is no public evidence TikTok has actually done that, however. TikTok has said the keylogging function is used for “debugging, troubleshooting, and performance monitoring,” as well as to detect bots and spam. Other research has shown that the use of keyloggers is extremely widespread in the technology industry. That does not necessarily excuse TikTok or its peers for using a keylogger in the first place, but neither is it proof positive that TikTok’s product, by itself, is any more of a national security threat than other websites.

    There have also been a number of studies that report TikTok is tracking users around the internet even when they are not using the app. By embedding tracking pixels on third-party websites, TikTok can collect information about a website’s visitors, the studies have found. TikTok has said it uses the data to bolster its advertising business. And in this respect, TikTok is not unique: the same tool is used by US tech giants including Facebook-parent Meta and Google on a far larger scale, according to Malwarebytes, a leading cybersecurity firm.

    As with the keylogging tech, the fact TikTok uses tracking pixels does not on its own transform the company into a national security threat; the risk is that the Chinese government could compel or influence TikTok, through ByteDance, to abuse its data collection capabilities.

    Separately, a report last year found TikTok was spying on journalists, snooping on their user data and IP addresses to find out when or if certain reporters were sharing the same location as company employees. TikTok later confirmed the incident and ByteDance fired several employees who had improperly accessed the TikTok data of two journalists.

    The circumstances surrounding the incident suggest it was not the type of wide-scale, government-directed intelligence effort that US national security officials primarily fear. Instead, it appeared to be part of a specific internal effort by some ByteDance employees to hunt down leaks to the press, which may be deplorable but hardly uncommon for an organization under public scrutiny. (Nevertheless, the US government is reportedly investigating the incident.)

    Joyce, the NSA’s top cyber official, told reporters in December that what he really worries about is “large-scale influence” campaigns leveraging TikTok’s data, not “individualized targeting through [TikTok] to do malicious things.”

    To date, however, there’s no public evidence of that taking place.

    TikTok may collect an extensive amount of data, much of it quietly, but as far as researchers can tell, it isn’t any more invasive or illegal than what other US tech companies do.

    According to security experts, that’s more a reflection of the broad leeway we’ve given to tech companies in general to handle our data, not an issue that’s unique or specific to TikTok.

    “We have to trust that those companies are doing the right thing with the information and access we’ve provided them,” said Peiter “Mudge” Zatko, a longtime ethical hacker and Twitter’s former head of security who turned whistleblower. “We probably shouldn’t. And this comes down to a concern about the ultimate governance of these companies.”

    Lin told CNN that TikTok and other social media companies’ appetite for data highlights policy failures to pass strong privacy laws that regulate the tech industry writ large.

    “TikTok is only a product of the entire surveillance capitalism economy,” Lin said. “And governments around the world are ignoring their duty to protect citizens’ private information, allowing big tech companies to exploit user information for gain. Governments should try to better protect user information, instead of focusing on one particular app without good evidence.”

    Asked how he would advise policymakers to look at TikTok instead, Lin said: “What I would call for is more evidence-based policy.”

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  • The US government is once again threatening to ban TikTok. What you should know | CNN Business

    The US government is once again threatening to ban TikTok. What you should know | CNN Business

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    CNN
     — 

    Nearly two-and-a-half years after the Trump administration threatened to ban TikTok in the United States if it didn’t divest from its Chinese owners, the Biden administration is now doing the same.

    TikTok acknowledged to CNN this week that federal officials are demanding the app’s Chinese owners sell their stake in the social media platform, or risk facing a US ban of the app.

    The new directive comes from the multiagency Committee on Foreign Investment in the United States (CFIUS), following years of negotiations between TikTok and the government body. (CFIUS is the same group that previously forced a sale of LGBTQ dating app Grindr from Chinese ownership back in 2019.)

    The ultimatum from the US government represents an apparent escalation in pressure from Washington as more lawmakers once again raise national security concerns about the app. Suddenly, TikTok’s future in the United States appears more uncertain – but this time, it comes after years in which the app has only broadened its reach over American culture.

    Here’s what you should know.

    Some in Washington have expressed concerns that the app could be infiltrated by the Chinese government to essentially spy on American users or gain access to US user data. Others have raised alarms over the possibility that the Chinese government could use the app to spread propaganda to a US audience. At the heart of both is an underlying concern that any company doing business in China ultimately falls under Chinese Communist Party laws.

    Other concerns raised are not unique to TikTok, but more broadly about the potential for social media platforms to lead younger users down harmful rabbit holes.

    If this latest development is giving you déjà vu, that’s because it echoes the saga TikTok already went through in the United States that kicked off in 2020, when the Trump administration first threatened it with a ban via executive order if it didn’t sell itself to a US-based company.

    Oracle and Walmart were suggested as buyers, social media creators were in a frenzy, and TikTok kicked off a lengthy legal battle against the US government. Some critics at the time blasted then-president Donald Trump’s crusade against the app as political theater rooted in xenophobia, calling out Trump’s unusual suggestion that the United States should get a “cut” of any deal if it forced the app’s sale to an American firm.

    The Biden administration eventually rescinded the Trump-era executive order targeting TikTok, but replaced it with a broader directive focused on investigating technology linked to foreign adversaries, including China. Meanwhile, CFIUS continued negotiations to strike a possible deal that would allow the app to continue operating in the United States. Then scrutiny began to kick up again in Washington.

    Lawmakers renewed their scrutiny of TikTok for its ties to China through its parent company, ByteDance, after a report last year suggested US user data had been repeatedly accessed by China-based employees. TikTok has disputed the report.

    In rare remarks earlier this month at a Harvard Business Review conference, TikTok CEO Shou Chew doubled down on the company’s prior commitments to address the lawmakers’ concerns.

    “The Chinese government has actually never asked us for US user data,” Chew said, “and we’ve said this on the record, that even if we where asked for that, we will not provide that.” Chew added that “all US user data is stored, by default, in the Oracle Cloud infrastructure” and “access to that data is completely controlled by US personnel.”

    TikTok CEO, Shou Zi Chew is interviewed at offices the company uses on Tuesday February 14, 2023 in Washington, DC.(Photo by Matt McClain/The Washington Post via Getty Images)

    As for the concerns that the Chinese government might use the app to spew propaganda to a US audience, Chew emphasized that this would be bad for business, noting that some 60% of TikTok’s owners are global investors. “Misinformation and propaganda has no place on our platform, and our users do not expect that,” he said.

    In response to the CFIUS divestiture request, a TikTok spokesperson told CNN this week that a change in ownership wouldn’t impact how US user data is accessed.

    “If protecting national security is the objective, divestment doesn’t solve the problem,” TikTok spokesperson Maureen Shanahan said in a statement. “A change in ownership would not impose any new restrictions on data flows or access. The best way to address concerns about national security is with the transparent, US-based protection of US user data and systems, with robust third-party monitoring, vetting, and verification, which we are already implementing.”

    TikTok is really only a national security risk insofar as the Chinese government may have leverage over TikTok or its parent company. China has national security laws that require companies under its jurisdiction to cooperate with a broad range of security activities. The main issue is that the public has few ways of verifying whether or how that leverage has been exercised. (TikTok doesn’t operate in China, but ByteDance does.)

    Privacy and security researchers who have looked under the hood at TikTok’s app say that, as far as they can tell, TikTok isn’t much different from other social networks in terms of the data it collects or how it communicates with company servers. That’s still a lot of personally revealing information, but it doesn’t imply that TikTok’s app itself is inherently malicious or a kind of spyware.

    That’s why the concern really focuses on TikTok and ByteDance’s relationship to the Chinese government, and why the Biden administration is pushing for TikTok’s Chinese owners to sell their shares.

    India banned TikTok in the summer of 2020, following a violent border clash between the country and China, in a move that abruptly disconnected the more than 200 million users the app had amassed there.

    While stopping short of banning the app on personal devices, a number of other countries, including the United States, Canada and United Kingdom have recently enacted bans of TikTok on official, government devices.

    Late last year, President Joe Biden signed legislation prohibiting TikTok on federal government devices, and more than half of US states have enacted a similar mandate at the state level. A TikTok spokesperson previously blasted this ban as “little more than political theater.”

    “The ban of TikTok on federal devices passed in December without any deliberation, and unfortunately that approach has served as a blueprint for other world governments,” the spokesperson added.

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  • Meta rolls out paid verification option for Facebook and Instagram users in US | CNN Business

    Meta rolls out paid verification option for Facebook and Instagram users in US | CNN Business

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    New York
    CNN
     — 

    Facebook and Instagram users in the United States will soon be able to pay to get a coveted blue check on their account.

    Meta on Friday began testing a paid verification option for US users of the two social networks, CEO Mark Zuckerberg announced on Instagram. The company plans to gradually roll out the paid option to more US users over the next few weeks.

    First tested in February in Australia and New Zealand, Meta Verified starts at $11.99 a month on the web or $14.99 a month on mobile. In addition to verification, the option offers perks such as extra protection from impersonation accounts and direct access to customer support.

    To avoid fake accounts, customers who want to get the blue badge would need to provide a government ID which matches their profile name and picture. Users must also be above 18 to be eligible for the new service.

    “This new feature is about increasing authenticity and security across our services,” Zuckerberg wrote in February in an Instagram broadcast channel.

    Meta joins other platforms, like Discord, Reddit and YouTube, which have their own subscription-based models. Twitter relaunched its own verification subscription service, Twitter Blue, in December, after an onset of fake “verified” accounts forced it to pull the feature. Twitter Blue costs $11 a month for iOS and Android subscribers, part of owner Elon Musk’s attempt to raise its subscriptions business after buying the platform for $44 billion.

    For Meta, the move offers the promise of another revenue stream beyond advertising, at a time when its core ad sales business is under pressure from a number of factors, including privacy changes on Apple and tightening budgets amid recession fears.

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  • SVB collapse was driven by ‘the first Twitter-fueled bank run’ | CNN Business

    SVB collapse was driven by ‘the first Twitter-fueled bank run’ | CNN Business

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    New York
    CNN
     — 

    The massive amount of customer withdrawals that led to the collapse of Silicon Valley Bank had all the hallmarks of an old-fashioned bank run, but with a new twist befitting the primary industry the bank served: much of it unfolded online.

    Customers withdrew $42 billion in a single day last week from Silicon Valley Bank, leaving the bank with $1 billion in negative cash balance, the company said in a regulatory filing. The staggering withdrawals unfolded at a speed enabled by digital banking and were likely fueled in part by viral panic spreading on social media platforms and, reportedly, in private chat groups.

    In the day leading up to the bank’s collapse, multiple prominent venture capitalists took to Twitter in particular, and used their large platforms to raise alarms about the situation, sometimes typing in all caps. Some investors urged startups to rethink where they kept their cash. Founders and CEOs then shared tweets about the concerning situation at the bank in private Slack channels, according to The Wall Street Journal.

    On the other side of a screen, startup leaders raced to withdraw funds online – so many, in fact, that some told CNN the online system appeared to go down. Still, the end result was a modern race to withdraw funds, which House Financial Services Chair Patrick McHenry later described in a statement as ” the first Twitter-fueled bank run.”

    “Even back in the ancient days, way before we had any form of modern communication, this stuff tended to be rumors that moved really fast. The reason it would happen is people would walk down the street and observe people standing outside of banks,” Andrew Metrick, Janet L. Yellen Professor of Finance and Management at the Yale School of Management, told CNN. “Now we don’t have that, but we have Twitter.”

    The experience of the bank run was also far removed from prior eras when a large number of customers would physically show up at a bank to withdraw funds (though some did line up outside Silicon Valley Bank locations, too.) Now, many could do so online or through mobile devices.

    “What made the Silicon Valley Bank run unique was (1) the ease with which its customers could execute withdrawals and (2) the speed with which news of Silicon Valley Bank’s impending demise spread,” Ben Thompson, an analyst who tracks the tech industry, wrote in a post on Monday. “It was the speed, fueled by zero distribution costs for both rumors and withdrawals, that was so destabilizing.”

    Silicon Valley Bank was arguably uniquely susceptible to those factors given its tech-focused customer base. Moreover, its clients, many of whom were venture-backed businesses, were far more likely than the average consumer to keep more than the standard maximum FDIC insured amount of $250,000 in their accounts.

    “The FDIC covers 250K, but am I going to recover my whole 8 figures?” one startup founder told CNN last week, after the bank had collapsed. Other large tech companies kept even larger sums with the bank. That likely made the bank’s customers even more susceptible to the panic spreading online.

    Some prominent tech figures, including Mark Suster, a partner at venture capital firm Upfront Ventures, urged those in the VC community to “speak out publicly to quell the panic” around Silicon Valley Bank last week and cautioned against creating “mass hysteria.”

    “Classic ‘runs on the bank’ hurt our entire system,” he wrote in a lengthy Twitter thread on Thursday. “People are making public jokes about this. It’s not a joke, this is serious stuff. Please treat it as such.”

    His calls for calm weren’t enough. The next day, the US Federal Deposit Insurance Corporation stepped in and took control of the bank, which only added to the viral panic on Twitter.

    “YOU SHOULD BE ABSOLUTELY TERRIFIED RIGHT NOW,” Jason Calacanis, a tech investor, wrote on Twitter Sunday. “THAT IS THE PROPER REACTION.”

    Hours later, the Biden administration stepped in and guaranteed the bank’s customers would have access to all their money starting Monday.

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  • Twitter could have a new rival — a platform created by Meta | CNN Business

    Twitter could have a new rival — a platform created by Meta | CNN Business

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    New York
    CNN
     — 

    Facebook-parent Meta is exploring building a new, standalone platform for sharing text updates, the company confirmed to CNN on Friday, in what could mark the most high-profile new contender to take on Twitter as it falters under Elon Musk.

    “We believe there’s an opportunity for a separate space where creators and public figures can share timely updates about their interests,” a Meta spokesperson said in a statement to CNN, which essentially described Twitter’s mission statement without naming the platform.

    The platform, plans for which were earlier reported by Platformer and MoneyControl, would be decentralized, meaning users could ostensibly create different servers or communities, each with their own rules rather than one central platform controlled by Meta. The concept is similar to Reddit or Discord, but a departure from how Meta’s other platforms function.

    If Meta’s new platform were decentralized, it could allow third parties to build apps and features into the platform, potentially giving users experiences beyond what Meta itself might build.

    The effort, codenamed P92, is in its early stages and is being led by Instagram head Adam Mosseri, according to Platformer.

    Meta declined to comment beyond its statement, including in response to questions about the new platform’s potential features or a timeline for launch.

    A number of upstart platforms have in recent months attempted to capitalize as Twitter struggles with frequent outages, the return of controversial users and a drop-off in advertisers. Many of them had an early jump in users following Musk’s takeover at Twitter, but have since struggled to gain widespread adoption.

    Mastodon, a decentralized social network that was launched in 2016, grew its user base from 300,000 users to more than 2.5 million in the weeks after Musk completed his acquisition of Twitter in late October. But its growth has slowed in recent months, in part as users struggle with the somewhat less straightforward and user-friendly nature of a decentralized platform.

    A new service from Meta, however, could benefit from the existing, large user base of the company’s other platforms, including the two billion people who use Facebook daily.

    Plans for a new platform come as Meta is also shifting the strategy for its older platforms, emphasizing video and recommended content in an effort to better compete with TikTok. Earlier this week, Facebook head Tom Alison told CNN that the app is testing reincorporating messaging so that users don’t have to go to a separate app to share content they find on Facebook.

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  • A New York man was arrested after allegedly threatening a shooting at Tops Friendly Markets in a social media post | CNN

    A New York man was arrested after allegedly threatening a shooting at Tops Friendly Markets in a social media post | CNN

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    CNN
     — 

    A 20-year-old man from Upstate New York has been charged with making a terroristic threat after threatening to carry out a shooting at the Tops Friendly Markets in Manlius, New York, in a Discord post, according to court documents and local police.

    Police responded to a call Saturday from the manager of the Tops in Manlius – a village in Onondaga County – who said that the store got phone calls from two different people expressing their concern over statements made by a Discord user saying he was going to harm shoppers at their supermarket, according to court documents obtained by CNN affiliate WSTM.

    The two witnesses who called the supermarket reported that the threatening remarks on Discord – which included a racist reference – came from a 20-year-old man named Zachary who lives in the Manlius area and whose father recently died, according to the documents.

    Police investigated the posts and identified the user as Zachary Mullen of Jamesville, according to a statement from the Town of Manlius Police Department.

    Law enforcement arrested Mullen on Saturday for making a terroristic threat and, when conducting a search of his home afterward, found guns and ammunition, according to the police statement.

    A judge also issued an Extreme Risk Protection Order against Mullen on Sunday, which allowed authorities to seize at least two firearms from his home.

    CNN was unable to identify an attorney for Mullen.

    “There were some racist overtones to the posts made by Mr. Mullen and as of this moment we’re still trying to connect the dots as to why he picked the Tops in Manlius, but certainly the location of the store, the name of the store, the racist natures of the post, would cause anyone pause, that this may have been far more dastardly than it even looks on the surface,” Onondaga County District Attorney Bill Fitzpatrick told WSTM.

    Discord is the same social media site that a convicted mass shooter posted on before killing 10 people at a Tops Friendly Markets in Buffalo.

    Law enforcement officials verified that Mullen’s father, who they say was an avid hunter, had died a few days prior to Mullen’s posts on Discord and that he was grieving, according to the affidavit.

    Mullen, who lives with his mother, is not currently in jail, according to the county district attorney.

    “Unfortunately, he’s out on what’s known as pre-trial release because we live in New York and that’s the nature of Bail reform in New York. Incredibly enough he is out so if he has secret access to a gun, God forbid, that’s something we just don’t know but we’ll certainly be monitoring him as much as we can,” Fitzpatrick said in a statement to WSTM.

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  • Facebook-parent Meta plans to lay off another 10,000 employees | CNN Business

    Facebook-parent Meta plans to lay off another 10,000 employees | CNN Business

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    CNN
     — 

    Facebook-parent Meta plans to lay off another 10,000 workers, marking the second round of significant job cuts announced by the tech giant in four months.

    The latest layoffs, announced on Tuesday, come after Meta said in November that it was eliminating approximately 13% of its workforce, or 11,000 jobs, in the single largest round of cuts in the company’s history.

    In a Facebook post Tuesday, CEO Mark Zuckerberg said the job cuts will take place “over the next couple of months.”

    “We expect to announce restructurings and layoffs in our tech groups in late April, and then our business groups in late May,” he wrote. In a “small number of cases, it may take through the end of the year to complete these changes.”

    “Overall, we expect to reduce our team size by around 10,000 people and to close around 5,000 additional open roles that we haven’t yet hired,” Zuckerberg said.

    As of September 2022, Meta reported a headcount of 87,314, per a securities filings. With 11,000 job cuts announced in November and the 10,000 announced Tuesday, that would bring Meta’s headcount down to around 66,000.

    Meta is far from the only Big Tech company to undergo layoffs amid higher inflation, recession fears and a whiplash in pandemic-induced demand. In the first months of this year, Amazon, Google-parent Alphabet and Microsoft have all confirmed major job cuts impacting tens of thousands of tech workers.

    Shares of Meta rose more than 4% in early trading Tuesday following the announcement.

    When the first round of job cuts was announced in November, Zuckerberg blamed himself at the time for the company’s over-hiring earlier in the pandemic. Meta  nearly doubled its headcount between March 2020 and September of last year, as the Covid-19 crisis led to a surge in demand for digital services.

    But the situation changed radically for the social media giant and other tech companies last year as pandemic restrictions eased and people returned to their offline lives. Meta’s core business was also hit by privacy changes implemented by Apple and advertisers tightening budgets amid recession fears.

    In its most-recent quarterly earnings report, Meta posted a sharp drop in profits and reported its third straight quarterly decline in revenue. But during the earnings call, Zuckerberg promised investors that 2023 would be the “year of efficiency” for the company, following years of heavy investment in growth and a more immersive version of the internet called the metaverse.

    On that call, Zuckerberg also suggested that more job cuts could be coming.

    “We closed last year with some difficult layoffs and restructuring some teams. When we did this, I said clearly that this was the beginning of our focus on efficiency and not the end,” Zuckerberg said during the earnings call in early February. He added that the company would be focused on “flattening” its org structure and “removing some layers of middle management to make decisions faster.”

    “As part of this, we’re going to be more proactive about cutting projects that aren’t performing or may no longer be as crucial, but my main focus is on increasing the efficiency of how we execute our top priorities,” Zuckerberg said.

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  • CNBC’s Andrew Ross Sorkin says covering the SVB meltdown is like ‘walking a tight rope’ | CNN Business

    CNBC’s Andrew Ross Sorkin says covering the SVB meltdown is like ‘walking a tight rope’ | CNN Business

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    New York
    CNN
     — 

    Andrew Ross Sorkin woke up early Monday morning, long before the crack of dawn, after managing to sneak in a handful of hours of sleep.

    The New York Times columnist had been up late into the night working on his DealBook newsletter. And now he needed to rise for a special edition of “Squawk Box,” the CNBC program he has co-hosted since 2011.

    The special 5am edition of “Squawk” had been tasked with covering the continuing fallout stemming from the sudden collapse of Silicon Valley Bank, a massive financial news story that has drawn some eerie comparisons to the beginnings of the 2008 financial disaster.

    A version of this article first appeared in the “Reliable Sources” newsletter. Sign up for the daily digest chronicling the evolving media landscape here.

    It is a story Sorkin described covering as “a balancing act, a little bit like walking a tight rope.” On one hand, he said, journalists must avoid sparking panic and causing a catastrophic run on the banks. But, on the other hand, journalists also owe it to their audiences to deliver them a clear-eyed assessment of the state of affairs.

    “Our job as journalists is to tell the public what is happening — and if you believe in transparency, we should all want that,” Sorkin said. “The downside of transparency in real-time is sometimes news that may not be positive can pile on itself in a way. And so I think it is really just about trying to contextualize what we’re seeing.”

    “You don’t want to cause a run on a bank,” Sorkin added, “but then at the same time, if everyone is running and they have reason to run, I think it’s important that the public understands what’s happening.”

    The approach to delivering the news and covering the implosion of SVB that Sorkin described stands in stark contrast to some of the commentary saturating the internet and at other media outlets.

    Over the weekend, some venture capital influencers amplified fear and suggested the entire US banking system was on the verge of collapse. The investor Jason Calacanis, who hosts a podcast and commands a Twitter audience of nearly 700,000 followers, tweeted, “YOU SHOULD BE ABSOLUTELY TERRIFIED RIGHT NOW.” On the right-wing talk channel Fox News Monday morning, “Fox & Friends” co-host Ainsley Earhardt suggested Americans needed “to go to our banks and take our money out.”

    Unprecedented in its sheer speed and volume, SVB’s collapse is “fascinating,” Sorkin said, causing a meltdown only now possible in the “true age of social media, as well as what might be described as digital banking.”

    “The ability for information to spread rapidly, both good information and bad, and for people to act on that information and then going to a bank app and transferring funds from one place to another, makes the responsibility [for journalists] even greater,” Sorkin said.

    Sorkin said banking is ultimately a “confidence game,” explaining that it is “genuinely about whether people have confidence in leaving their money in a particular institution.” And in this current environment where social media influencers and other irresponsible voices thrive, Sorkin said it “inherently makes things less stable.”

    “You have a lot of people who are on social media who don’t necessarily feel the same responsibilities to contextualize the news in the same way I might try,” Sorkin said. He suggested that in the case of SVB, there may have been “a little smoke in the corner of the theater” that could have been addressed before a fire burst out and prompted danger.

    “If you scream ‘fire,’ everyone runs out of the theater,” Sorkin said. “Could the smoke have been put out before everyone ran out of the theater? Maybe.”

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  • Chinese companies and founders rush to calm investors after SVB collapse | CNN Business

    Chinese companies and founders rush to calm investors after SVB collapse | CNN Business

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    Hong Kong
    CNN
     — 

    The collapse of Silicon Valley Bank (SVB), which courted Chinese start-ups, has caused widespread concern in China, where a string of founders and companies rushed to appease investors by saying their exposure was insignificant or nonexistent.

    SVB, which worked with nearly half of all venture-backed tech and healthcare companies in the United States before it was taken over by the government, has a Chinese joint venture, which was set up in 2012 and targeted the country’s tech elite.

    The SPD Silicon Valley Bank, which was owned 50-50 owned by SVB and local partner Shanghai Pudong Development Bank, said Saturday that its operations were “sound.”

    “The bank has a standardized corporate governance structure and an independent balance sheet,” it said in a statement. “As China’s first technology bank, SPD Silicon Valley Bank is committed to serving Chinese science and technology companies, and has always had sound operations in accordance with Chinese laws and regulations.”

    It’s unclear what will happen to SVB’s ownership of the joint venture.

    SVB Financial Group, the parent company of SVB, also has two business consulting firms and one financial services firm in mainland China, according to corporate database Tianyancha.

    Concerns about the failure of SVB have spread around the world, as investors fretted about the broader risks to the global banking sector and any potential spillover effect.

    In an extraordinary move to restore confidence in America’s banking system, the Biden administration on Sunday guaranteed that customers of SVB and Signature Bank, which was closed by regulators, will have access to all their money.

    That action appears to have appeased global markets, with US futures rallying in response and some Asian markets paring earlier losses.

    In China, at least a dozen firms have issued statements since SVB collapsed trying to pacify investors or clients, saying that their exposure to the lender was limited. Most were biotech companies.

    BeiGene, one of China’s largest cancer-focused drug companies, said Monday it had more than $175 million uninsured cash deposits at SVB, which represents approximately 3.9% of its cash, cash equivalents and short-term investments.

    “The company does not expect the recent developments with SVB to significantly impact its operations,” it said.

    Zai Lab, a pharmaceutical firm, announced that its cash deposits at SVB were “immaterial” at about $23 million.

    The closure of SVB “will not have an impact” on the company’s ability to meet its operating expenses and capital expenditure requirements, including payroll, it said.

    Other companies that publicly assured investors included Andon Health, Sirnaomics, Everest Medicines, Broncus Medical, Jacobio Pharmaceuticals, Brii Biosciences, CStone Pharmaceuticals, Genor Biopharma and CANbridge Pharmaceuticals.

    Mobile ad tech firm Mobvista and wealth management firm Noah Holdings said their cash holdings at SVB were “minimal” or “immaterial.”

    Popular selfie app Meitu said it hadn’t held any bank accounts at SVB since 2020. It issued a statement “to avoid any potential public misunderstanding.”

    Ascletis Pharma, MicroPort NeuroTech, Antengene Corp, and Suzhou Basecare Medical Corporation also denied they had any deposits or business dealings with SVB.

    Pan Shiyi, co-founder and former chairman of Soho China, a major Beijing-based property developer, denied he had any money at SVB after reports went viral on social media that he had lost billions of yuan.

    “We never opened an account with Silicon Valley Bank, nor placed a deposit,” he said late Sunday on his Weibo account.

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  • China censors women modeling lingerie on livestream shopping — so men are doing it | CNN Business

    China censors women modeling lingerie on livestream shopping — so men are doing it | CNN Business

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    Hong Kong
    CNN
     — 

    Donning a sassy piece of silk lingerie, a male model grooves to the beat and forms a heart shape with his fingers during a livestreaming session on Douyin, one of China’s most popular video-sharing platforms.

    His modeling performance is the latest illustration of the kind of entrepreneurial innovation sometimes needed to bypass China’s rigorous internet censorship, a dragnet that can ensnare seemingly innocuous activities – in this case retailers selling women’s underwear online.

    China deploys one of the world’s most stringent censorship regimes, with a track record of blocking out not just politically sensitive information but images of women’s bodies deemed marginally racy.

    Several businesses specializing in selling lingerie through livestreaming have had their sessions cut short after they featured a female model and their brush with internet censorship came to light in January.

    Hence the use of men instead.

    On one of the sales channels, a man is seen dressed in black lingerie, standing next to a mannequin showing a similar outfit, in what appears to be a screenshot of a livestream broadcast on Alibaba

    (BABA)    ’s Taobao Live, a streaming platform for the e-commerce giant.

    In another image, a different male model put on a pink slip dress and silky shawl, accessorized with cat ear headbands.

    In one livestream clip, carried by multiple state media outlets, an owner of an online venture said he was simply trying to play it safe.

    “This is not an attempt at sarcasm. Everyone is being very serious about complying with the rules,” the man, who identified himself as Mr Xu, said.

    The emergence of male lingerie models has caused mixed views online in China, from merriment and annoyance to reluctant acceptance.

    “So what should I do if I want to promote and showcase lingerie in the live broadcast session? It’s very simple, find a man to wear it,” read one comment on China’s microblogging site Weibo.

    A man in a mini slip dress and velvet robe models beside a woman in pajamas in a video posted on Douyin on February 17, 2023.

    Livestreaming sales of products is a multibillion-dollar industry in mainland China, and was given a major boost during the three years of the country’s strict Covid lockdowns that battered many bricks and mortar businesses.

    As of June last year, the number of livestreaming e-commerce users in mainland China is over 460 million, according to the Academy of China Council for the Promotion of International Trade, a body affiliated with Beijing’s commerce ministry.

    A 2021 report by iResearch, a Beijing-based firm specializing in measuring audience growth online, predicted the livestream sector would be worth as much as $720 billion this year.

    Male models are not the only workaround.

    On Douyin, the Chinese domestic version of TikTok, other female models have circumvented the censorship by showcasing the latest style of lingerie on themselves on top of a t-shirt they are already wearing.

    Others displayed the items on mannequins.

    In 2015, China led a crackdown on television shows exposing actresses’ cleavage, forcing some of the most popular costume dramas to zoom in on their faces to avoid getting into trouble with the broadcast authorities.

    Having male influencers promoting female-oriented products is not new in China, either.

    One of the industry’s most successful livestream shopping influencers is Austin Li Jiaqi, who made his name as the “Lipstick King” after selling 15,000 lipsticks in just five minutes in 2018.

    As one of China’s biggest internet celebrities, Li also peddles cosmetics, skincare products and fashion apparel, often applying products he’s selling to his own face.

    Even outside of China, platforms such as Facebook and Instagram have faced criticism for restricting the sharing of images involving partial nudity, especially of women.

    Facebook and Instagram’s parent company, Meta, restricts the sharing of breasts, although it says it intends “to allow images that are shared for medical or health purposes.” But even Meta’s own Oversight Board has called on the company to make its policy less confusing and more gender inclusive.

    YouTube says it prohibits “the depiction of clothed or unclothed genitals, breasts, or buttocks that are meant for sexual gratification,” but it may age-restrict other images or videos involving nudity.

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  • The new normal on Twitter: watching it break | CNN Business

    The new normal on Twitter: watching it break | CNN Business

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    Late last year, Dan Sinker found himself in a “Groundhog Day” situation. When he would check his notifications tab on Twitter, Sinker, who has tens of thousands of followers, often saw the platform recommend the same weeks-old tweet from another user. As Sinker described the situation in one tweet in early December, “we’re back to November 7 in my mentions again.”

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  • BBC’s flagship soccer show boycotted over Gary Lineker impartiality row | CNN

    BBC’s flagship soccer show boycotted over Gary Lineker impartiality row | CNN

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    CNN
     — 

    The BBC’s weekend soccer coverage has been plunged into chaos following its announcement Gary Lineker would “step back” from presenting, after he became embroiled in an impartiality row when he criticized British government policy on Twitter.

    The broadcaster now faces a boycott from pundits, presenters and even players of its flagship soccer show “Match of the Day,” while other soccer programs – Football Focus and Final Score – and some radio programming have been forced off-air as a result of the furore.

    Lineker criticized the government’s controversial new asylum-seeker policy on Tuesday and was subsequently relieved of his presenting duties this week since the BBC said his tweets breached their guidelines, specifically its commitment to “due impartiality.”

    The BBC’s decision has sparked controversy, leaving the organization under fire from opposition politicians, the Broadcasting Entertainment Communications and Theatre Union who represent BBC staff, and its former director general Greg Dyke.

    “The BBC will only be able to bring limited sport programming this weekend and our schedules will be updated to reflect that,” a BBC spokesperson said in a statement Saturday.

    “We are sorry for these changes which we recognize will be disappointing for BBC sport fans.

    “We are working hard to resolve the situation and hope to do so soon.”

    In an interview with BBC News on Saturday, the broadcaster’s Director General Tim Davie was asked if he should resign over the crisis. He said he would not.

    “I honestly do not believe, despite a lot of the commentary, that this is about left or right,” Davie said. The BBC is a “fierce champion of democratic debate, free speech, but with that comes the need to create an impartial organization,” he added.

    When asked if he was sorry about the way he handled the situation, he said: “We made decisions, and I made decisions based on a real passion about what the BBC is and it is difficult – it’s this balance between free speech and impartiality.”

    On Tuesday, Lineker tweeted “Good heavens, this is beyond awful” to a video posted on Twitter by the British Home Office announcing the new proposed policy – an attempt to stop migrant boats crossing the English Channel from France which has been criticized by the United Nations and other global bodies.

    He added: “There is no huge influx. We take far fewer refugees than other major European countries. This is just an immeasurably cruel policy directed at the most vulnerable people in language that is not dissimilar to that used by Germany in the 30s, and I’m out of order?”

    As Britain’s public broadcaster, the BBC is bound by “due impartiality” – a much debated term which the organization defines as holding “power to account with consistency” while not “allowing ourselves to be used to campaign to change public policy.”

    On Friday, the BBC announced Lineker would “step back from presenting Match of the Day until we’ve got an agreed and clear position on his use of social media,” adding it considered his recent social media activity to breach its guidelines.

    In response, first pundits, then commentators, and then even Premier League teams announced their intention to boycott the show in support of Lineker.

    BBC commentators Steve Wilson, Conor McNamara, Robyn Cowen and Steven Wyeth said in a joint statement issued late on Friday “in the circumstances, we do not feel it would be appropriate to take part in the programme.”

    A shortened version of the program did eventually air on Saturday. It opened with a BBC continuity announcer issuing an apology, instead of the usual title sequence and theme tune.

    It then showed highlights from Saturday’s English Premier League games with no commentary, only the background audio from the stadiums.

    The show aired for 20 minutes, an hour less than the originally scheduled time.

    Jermain Defoe, a former England striker, announced Saturday he would not appear as a pundit on the Sunday show.

    “It’s always such a privilege to work with BBC MOTD. But tomorrow I have taken the decision to stand down from my punditry duties. @GaryLineker,” Defoe tweeted.

    Defoe’s announcement appears to be the first sign the British broadcaster’s Sunday television programming will also be affected.

    Meanwhile, the Professional Footballers’ Association announced on Saturday “players involved in today’s games will not be asked to participate in interviews with Match of the Day.”

    “The PFA have been speaking to members who wanted to take a collective position and to be able to show their support for those who have chosen not to be part of tonight’s programme,” the statement added.

    “During those conversations we made clear that, as their union, we would support all members who might face consequences for choosing not to complete their broadcast commitments. This is a common sense decision that ensures players won’t now be put in that position.”

    Following his side’s 1-0 defeat against Bournemouth on Saturday, Liverpool manager Jurgen Klopp was asked about the BBC issue.

    “I cannot see any reason why they would ask anyone to step back for saying that. I’m not sure if that’s a language issue or not,” the German told reporters.

    “If I understand it right, then this is about an opinion about human rights and that should be possible to say.

    “What I don’t understand is why everybody goes on Twitter and says something. I don’t understand the social media part of it but that’s probably [because] I’m too old for that.”

    The BBC’s former director general Greg Dyke said the broadcaster has “undermined its own credibility” by suspending Lineker because it seemed like it had “bowed to government pressure.”

    Keir Starmer, leader of the opposition Labour Party, said the BBC had got “this one badly wrong and now they’re very, very exposed.”

    Scotland’s First Minister Nicola Sturgeon tweeted: “As a strong supporter of public service broadcasting, I want to be able to defend the BBC. But the decision to take Gary Lineker off air is indefensible. It is undermining free speech in the face of political pressure – & it does always seem to be rightwing pressure it caves to.”

    Opposition Labour Party deputy leader Angela Rayner also lambasted the BBC’s decision in a tweet on Saturday.

    “The BBC’s cowardly decision to take Gary Lineker off air is an assault on free speech in the face of political pressure from Tory politicians. They should rethink,” she tweeted.

    Meanwhile Nadine Dorries, an MP with the governing Conservative party and former Culture Secretary, welcomed the BBC’s decision, tweeting: “News that Gary Lineker has been stood down for investigation is welcome and shows BBC are serious about impartiality.

    “Gary is entitled to his views – free speech is paramount. Lots of non Public Service Broadcasters can accommodate him and his views and he would be better paid.”

    For his part, British Prime Minister Rishi Sunak on Saturday issued a statement saying he hopes the situation between the BBC and its star soccer host can be resolved but it is not a matter for the UK government.

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