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U.S. lawmaker warns TikTok algorithm licensing deal poses national security risks

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A senior U.S. lawmaker raised fresh concerns Thursday over a proposed licensing deal for TikTok’s algorithm as part of the planned sale of the app’s U.S. operations by its Chinese parent company ByteDance, warning that any continued Chinese influence over the technology could threaten national security.

Representative John Moolenaar, chair of the House Select Committee on China, said he is awaiting a formal briefing on the deal, which would reportedly allow the new U.S. owners of TikTok to license the platform’s algorithm from ByteDance.

“I think anytime you have China with leverage over the algorithm, that’s a problem,” Moolenaar said during remarks at the Hudson Institute, adding that the arrangement could leave room for undue influence.

The White House previously said the agreement meets the national security requirements set out in a 2024 law mandating ByteDance to divest TikTok’s U.S. assets or face a ban. President Donald Trump signed an executive order on September 25 approving the sale and granting 120 days to complete the transaction.

Under the proposal, ByteDance would retain less than 20% ownership in the new U.S. entity, with Americans holding the remaining board seats. The algorithm, which drives TikTok’s recommendation system, would be retrained and monitored by U.S. security partners.

Moolenaar, however, expressed skepticism that the algorithm could be fully reprogrammed or separated from its Chinese origins, noting, “It’s still very much a work in progress.”

TikTok did not immediately respond to requests for comment.

New York City sues tech giants for allegedly fueling youth mental health crisis

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New York City has filed a sweeping federal lawsuit against Meta, Google, Snap, TikTok, and ByteDance, accusing them of addicting children to social media and worsening a mental health crisis among young users. The 327-page complaint, lodged in Manhattan federal court, seeks damages for gross negligence and public nuisance, alleging that platforms like Instagram, YouTube, Snapchat, and TikTok were deliberately engineered to exploit the psychology of youth for profit.

The lawsuit claims the companies’ products have contributed to rising rates of depression, sleep deprivation, and chronic absenteeism among minors. According to the city’s data, more than 77% of New York City high school students spend over three hours daily on screens, and 82% of girls report similar habits.

New York’s health commissioner declared social media a public health hazard earlier this year, citing growing taxpayer burdens to combat mental health challenges in schools. The city also linked compulsive platform use to dangerous behaviors such as “subway surfing,” which has caused at least 16 deaths since 2023.

The case joins over 2,000 similar lawsuits filed nationwide, now consolidated in federal court in Oakland, California. A spokesperson for Google rejected the allegations, saying YouTube is a streaming platform rather than a social network. Other defendants have not yet commented.

The city argues that the companies must be held accountable for the harm caused by their algorithms, which it says have created a costly and deadly youth mental health epidemic.

Indonesia Suspends TikTok’s Operating Registration Over Data-Sharing Failures

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Indonesia has suspended TikTok’s registration as an electronic systems provider after the company allegedly failed to hand over full data related to its live-streaming feature, according to a statement from the country’s communications and digital ministry on Friday.

The move technically gives authorities the power to restrict access to TikTok—used by over 100 million Indonesians—but as of Friday, Reuters reporters were still able to access the app normally. Officials have not yet clarified whether the suspension will lead to an outright block.

Ministry official Alexander Sabar said the suspension followed concerns that accounts linked to online gambling exploited TikTok’s live-streaming tool during recent national protests, which erupted over lawmakers’ allowances and police brutality from late August through September. TikTok had temporarily suspended its live feature during the unrest, saying it aimed to “keep TikTok a safe and civil space.”

According to Sabar, the government requested TikTok’s traffic, streaming, and monetization data, but the company, owned by China’s ByteDance, did not fully comply, citing internal company procedures. “The communications and digital ministry deemed TikTok to have violated its obligations as a private electronic provider,” Sabar said, explaining that the platform’s registration was therefore suspended.

Under Indonesian law, all registered digital service providers must share certain operational data with the government for oversight purposes or risk being blocked.

In response, a TikTok spokesperson stated that the company respects local laws and is working with authorities to resolve the issue.

The dispute highlights Indonesia’s tightening regulatory scrutiny over global tech platforms, following a broader regional trend toward data sovereignty—governments demanding access to digital companies’ data as a condition for market operation.