Topline
A former TikTok executive suing the platform alleged Monday that ByteDance, TikTok’s China-based parent company, has far more extensive control over the social media platform than it has claimed—as TikTok CEO Shou Zi Chew fights back against a potential ban on TikTok by insisting it is not beholden to China.
Key Facts
The former marketing executive, Katie Puris, first sued TikTok in February, alleging she was fired in an act of age- and gender-based discrimination.
An amended lawsuit filed Monday claims after Puris’ initial discrimination complaint was filed, counsel for the social media platform said ByteDance did not employ her or any person—a claim Puris said was “completely untrue” and was made to continue TikTok’s efforts to convince lawmakers and the public that it is not controlled by ByteDance, which is based in Beijing.
Several ByteDance executives control TikTok functions and day-to-day operations such as marketing, branding, complaint procedures, budget allocations, staffing and termination decisions, Puris alleged, adding those executives, not Chew, are “TikTok’s real decision makers,” and Chew is primarily a “conduit” for them.
The suit accuses TikTok of “lying to Congress” about Chew’s level of independence.
Puris claims her supervisor was terminated after ByteDance leaders criticized his marketing decisions, demanded he consult with them and feared his campaigns might damage ByteDance’s relationships with other China-based tech companies.
The lawsuit also claims an unnamed U.S.-based senior leader within TikTok messaged Puris after her termination and said Chinese-based control of the platform has gotten “more extreme” since Puris’s firing, with the suit citing an ostensible message from the senior leader who said “they put in leaders that dictate the way they want out of China.”
TikTok did not immediately respond to Forbes’ request for comment.
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What To Watch For
Puris’ allegations come not long after President Joe Biden signed a law requiring ByteDance to sell the platform or face a U.S. ban in the next year amid concerns of Americans’ data being accessed by the Chinese government. ByteDance has been given about nine months to begin the sale of the platform, with an option to have the deadline extended by 90 days if the Biden administration sees “significant progress” toward a sale. TikTok could be banned in the U.S. if a sale to a non-U.S. adversary is not completed.
Key Background
TikTok has faced years of scrutiny for its ties to ByteDance, including allegations China-based staff can access U.S. data and TikTok employees have shared information with ByteDance leadership. The company has long denied these allegations. Chew, who has led TikTok since 2021, told Congress in March he “disagrees with the characterization” that the platform is spying on American users and said it is “committed” to protecting American data from foreign actors. As of June 2022, 100% of all U.S. user traffic on TikTok is routed to cloud-based infrastructure provided by Texas-based cloud computing company Oracle, according to the TikTok. ByteDance also says it is roughly 60% owned by institutional investors. The platform’s claims regarding the security of Americans’ data and its diversified ownership did not do much to quell the concern of U.S. lawmakers, a majority of whom voted for the bill later signed by Biden requiring ByteDance to sell TikTok.
Further Reading
Biden Signs Bill Forcing TikTok Sale Or Ban—Part Of Ukraine, Israel Aid Package (Forbes)
TikTok CEO Spars With Congress Amid Growing Calls For Ban—As Lawmaker Calls Privacy Claims ‘Preposterous’ (Forbes)
