ByteDance Ltd. is a Chinese internet technology company headquartered in
Haidian,
Beijing and incorporated in the
Cayman Islands.[7]
Founded by
Zhang Yiming, Liang Rubo and a team of others in 2012, ByteDance developed the
video-sharingappsTikTok and Douyin. The company is also the developer of the news platform
Toutiao.
ByteDance has attracted legislative and media attention in several countries over security, surveillance, and
censorship concerns.[8][9][10]
History
In 2009,
software engineer and entrepreneur
Zhang Yiming collaborated with his friend Liang Rubo to co-found 99fang.com, a real estate search engine.[11] In early 2012, the pair rented an apartment in
Zhongguancun and, along with several other 99fang employees, began developing an app that would use
big data algorithms to classify news according to users' preferences, which would later become
Toutiao.[12] That March, Yiming and Liang founded ByteDance.[13]
Launch of first apps
In March 2012, ByteDance launched its first app, called Neihan Duanzi (内涵段子, lit. "profound
gags"). This allowed users to circulate jokes, memes, and humorous videos. Before being forced by the
Chinese government to shut down in 2018, Neihan Duanzi had over 200 million users.[14]
In August 2012, ByteDance launched the first version of news and content platform Toutiao (头条, lit. "
headlines"), which would become their core product.[15]
In January 2013, in an attempt for
commercialism and
nationalism, a four-part plan for the future was presented to executives. Part four of the plan was to build an English version of Toutiao to gain users in English-speaking countries. At the time, there was an app race for video views and the attention of phone users.[16]
2016 to present
In March 2016, ByteDance established its research arm, called the ByteDance AI Lab. It is headed by Wei-Ying Ma, the former assistant managing director of Microsoft Research Asia.[17][18]
From late 2016 until 2017, ByteDance made a number of acquisitions and new product launches. In December 2016, it invested in the Indonesian news recommendation platform BABE.[19] Two months later, in February 2017, ByteDance acquired Flipagram, which was later rebranded to Vigo Video (Hypstar) in July 2017.[20] Vigo Video later shut down permanently on October 31, 2020. In November 2017, ByteDance acquired
musical.ly for an estimated US$1 billion. At the time of acquisition, TikTok was only available in India and musical.ly was available globally. In order for
TikTok to go global, ByteDance merged musical.ly with TikTok on August 2, 2018, keeping the name TikTok. Another notable acquisition includes News Republic from
Cheetah Mobile in November 2017.[21]
Since 2018, ByteDance has been in litigation with
Tencent.[22]: 109 ByteDance and its affiliates brought a series of
unfair competition lawsuits against Tencent, alleging that Tencent was blocking their content.[22]: 109 As of at least early 2024, these lawsuits had not reached resolution, largely due to disputes about jurisdiction.[22]: 109 Tencent filed two lawsuits against ByteDance and its affiliates, alleging that they were using WeChat and QQ profiles without authorization and illegally crawling data from public WeChat accounts.[22]: 109 Tencent obtained an injunction barring ByteDance from this practice.[22]: 109
In December 2018, ByteDance sued Chinese technology news site Huxiu for defamation after Huxiu reported that ByteDance's Indian-language news app Helo was propagating
fake news.[23]
In March 2021, the Financial Times reported that ByteDance was part of a group of Chinese companies that aimed to deploy technology to circumvent
Apple's privacy policies.[24][25]
In April 2021, ByteDance announced that it had created a new division called BytePlus to distribute the software framework underlying TikTok, so that others may launch similar apps.[26]
In August 2021, ByteDance acquired Pico, an Oculus-like
virtual reality startup.[27]
In June 2022, the Financial Times reported on a culture clash at ByteDance's London office that has led to a staff exodus.[28]
In March 2023,
TheWall Street Journal reported that former employees allege that the company engages in a practice called "horse racing," in which several teams are assigned to build the same product.[29] When one version is deemed to perform better, the team designing the better version is provided with more support.[29]
In April 2023, ByteDance filed a trademark for a book publisher called 8th Note Press.[30]
In December 2023,
The Verge reported that ByteDance used OpenAI's
API for its own
generative AI projects. Afterwards,
OpenAI announced that while usage by ByteDance was minimal, its account has been suspended pending further investigation whether any
terms of service were violated. ByteDance stated that it had been licensed for using the API outside the Chinese market, its own chatbot is available only within China, and
ChatGPT-generated data have been deleted from ByteDance's training data since the middle of 2023. Scraping existing AI models is a common shortcut for smaller companies but considered unusual for the likes of ByteDance.[31]
In May 2024, ByteDance laid off "a large percentage" of the 1,000 employees from its global user operations, content, and marketing teams. The global user operations team was disbanded and remaining employees were reassigned.[32][33]
ByteDance's owners include investors outside of China (60%), its founders and Chinese investors (20%), and employees (20%).[38] In 2021, the
state-ownedChina Internet Investment Fund purchased a 1% stake in ByteDance's main Chinese subsidiary, Beijing ByteDance Technology (formerly Beijing Douyin Information Service), as a
golden share investment[39][40][41] and seated Wu Shugang, a government official with a background in government propaganda, as one of the subsidiary's board members.[42][43][44]
Zhang Yiming was ByteDance's chairman and CEO from its founding in 2012 until 2021, when co-founder Liang Rubo took over as CEO.[46]
On 19 May 2020, ByteDance and Disney released an announcement that Kevin Mayer, head of Disney's streaming business, would join ByteDance. From June 2020 to his resignation 26 August 2020, Mayer served as the CEO of TikTok and the COO of ByteDance, reporting directly to the company CEO Zhang Yiming.[47][48] In 2021, Shou Zi Chew, former CFO of
Xiaomi, took over as TikTok CEO.[49]
In 2014, ByteDance established an internal
Chinese Communist Party (CCP) committee.[50] The company's vice president, Zhang Fuping, serves as the company's
CCP Committee Secretary.[51][52] According to a report submitted to the
Australian Parliament, Zhang Fuping stated that ByteDance should "transmit the correct political direction, public opinion guidance and value orientation into every business and product line."[53][54]
Partnerships
ByteDance's China business has a strategic partnership with the Chinese
Ministry of Public Security for the ministry's
public relations efforts.[55] The partnership also said that ByteDance would work with the Ministry of Public Security in cooperation on unspecified "offline activities."[56][57]
In 2018, ByteDance helped to establish the Beijing Academy of Artificial Intelligence, an initiative backed by the
Ministry of Science and Technology and the Beijing municipal government.[53][58]
In 2019, ByteDance formed joint ventures with Beijing Time, a publisher controlled by the Beijing municipal CCP committee, and with Shanghai Dongfang, a state media firm in Shanghai.[59][60] In 2021, ByteDance announced that its partnership with Shanghai Dongfang had never been in operation and was disbanded.[61]
First released to the public in April 2020,
CapCut is a
video editing software made for beginners.[71] As of March 2023[update], CapCut has more than 200 million active users each month, and according to The Wall Street Journal, it was downloaded more than the
TikTok app in March 2023.[72] In March 2023, it was the second-most downloaded app in the U.S. behind that for Chinese discount retailer,
Temu.[29]
First released to the public in September 2016, Douyin (
Chinese: 抖音;
pinyin: Dǒuyīn), previously named A.me, is the Chinese version of TikTok. The application is a short-form video social media platform that differs from its international counterpart version by having more advanced features, such as
e-commerce.[73] TikTok and Douyin have almost the same user interface but no access to each other's content. Their servers are each based in the market where the respective app is available.[74]
First released to the public in 2019, Lark is ByteDance's enterprise collaboration platform.[75] Lark was originally developed as an internal tool, becoming ByteDance's primary internal communication and collaboration platform, but was eventually made available to external users in certain markets.[76]
First released to the public in September 2017, TikTok is a
video-sharingsocial networking service[77] used to make short-form videos, from genres like dance, comedy, and education.[78][79] On 9 November 2017, ByteDance acquired
Shanghai-based social media start-up
Musical.ly for up to
US$1 billion. They combined it and prior acquisition Flipagram[80][81] into TikTok on 2 August 2018, keeping the TikTok name.
TikTok Music
Formerly known as
Resso, TikTok Music launched in
Indonesia and
Brazil in July 2023.[82] On October 19, 2023, TikTok Music premiered in Mexico, Singapore and Australia.[83]
The platform allows users to highlight and share lyrics, comments and other user-generated content with each other alongside streaming of full-length tracks.[84] ByteDance says that it has licensing agreements in place with
Warner Music Group,
Sony Music Entertainment,
Merlin Network and
Beggars Group, among others.[85] Resso will be shut down in India in January 2024, due to "local market conditions".[86][87]
Toutiao (
Chinese: 今日头条;
pinyin: Jīnrì Tóutiáo), launched in August 2012,[15] started out as a news
recommendation engine and gradually evolved into a platform delivering content in various formats, such as texts, images, question-and-answer posts,
microblogs, and videos.[88][89]
In January 2014, the company created the "Toutiaohao" (头条号) platform to attract more content creators. Later in the year, it added video capabilities. Toutiao used interest-based and decentralized distribution to help
long tail content creators find an audience.[90]
In 2017, Toutiao acquired Flipagram. ByteDance would later expand Toutiao's features to include: a missing person alerts project whose alerts have helped find 13,116 missing persons as of June 2020;[91] short-form video platform Toutiao Video, later rebranded as
Xigua Video (西瓜视频, also known as Watermelon Video), which hosts video clips that are on average 2–5 minutes long;[92] and Toutiao Search, a search engine.[93]
Initially launched as Toutiao Video in 2016, Xigua Video (
Chinese: 西瓜视频;
pinyin: Xīguā shìpín) is an
online video-sharing platform that features user-created short and mid-length videos and also produces film and television content.[94]
Nuverse
Initially launched in 2019, Nuverse has launched as a video game publisher company.[95] The first game launched outside mainland China was Warhammer 40,000: Lost Crusade in 2021. Later in 2021,
Moonton became a subsidiary of Nuverse, after winning the bid, initially set by
Tencent.[96][97]
In 2022, the studio has launched
Marvel Snap in October worldwide, after closed alpha testing in the
Philippines, and gradually entering open beta with the first country being
New Zealand. In November 2023,
Reuters reported ByteDance was restructuring Nuverse and retreating from gaming.[98]
Other products and acquisitions
Gogokid was launched in May 2018 as an online English learning platform for children that provides one-on-one classes with native English speakers.[99] In August 2021, ByteDance announced that the app business will be shuttered and most of Gogokid's staff will be laid off, following new regulations imposed on the after-school tutoring industry in China.[100]
Neihan Duanzi, ByteDance's first app, was shut down in 2018 following a crackdown by the national media regulator.
Party Island (Chinese: 派对岛; pinyin: Pàiduì dǎo) is a social media app that allows users to create avatars, join virtual events like concerts, and chat with other participants. It also has a messaging function within the app, so users can send texts to each other privately and join group chats. It is open to public testing in July 2022.[103]
TopBuzz was a content platform for videos, articles, breaking news and GIFs.[104] The service was launched in 2015 and abandoned in 2020 due to dwindling business.[105][106] Former employees alleged that TopBuzz was used to push soft content messaging sympathetic to China in overseas markets; this was denied by ByteDance.[104]
8th Note Press, a publisher established by ByteDance in 2023.[30]
Censorship, surveillance, and data privacy concerns
In April 2018, China's state media regulator, the
National Radio and Television Administration (NRTA), ordered the temporary removal of Toutiao and Neihan Duanzi from Chinese app stores. The NRTA accused Neihan Duanzi in particular of hosting "vulgar" and "improper" content and "triggering strong sentiments of resentment among internet users".[118] The following day, Neihan Duanzi announced it was permanently shutting down.[118] In response to the shutdown, Yiming issued a letter stating that the app was "incommensurate with
socialist core values" and promised that ByteDance would "further deepen cooperation" with the authorities to promote their policies.[119][120] Following the shutdown, ByteDance announced that it would give preference to Chinese Communist Party members in its hiring and increase its censors from 6,000 to 10,000 employees.[121][122][123]
As of 2019[update], ByteDance's Beijing headquarters has maintained an office where cybersecurity police are stationed so that illegal content can be instantly reported.[124][125] In November 2019, the Cyberspace Administration of China (CAC) ordered ByteDance to remove "slanderous" information on
Fang Zhimin from Toutiao.[126] In April 2020, the CAC ordered ByteDance to take down its office collaboration tool,
Lark, because it could be used to circumvent
Internet censorship.[127] In January 2021, Chinese regulators fined ByteDance for spreading "vulgar information."[128][129] In April 2021, ByteDance was among 13 online platforms ordered by the
People's Bank of China to adhere to tighter data and financial regulations.[130] The bank stated that ByteDance must conduct comprehensive self-examination and rectification to adhere to the country's laws.[131] In May 2021, the CAC stated that ByteDance had engaged in illegal data collection and misuse of personal information.[132]
In April 2022, ByteDance announced that it would report users' content on Toutiao and Douyin that engaged in "
historical nihilism" in contradiction of official CCP history.[133]
In November 2023, Forbes reported that ByteDance's internal workplace tool called Feishu, which contains "product network security, data security, personal information, and daily operations," was accessed by the CAC and other Chinese government authorities in the run-up to the
20th National Congress of the Chinese Communist Party.[124]
Citing national security issues the
Indian Government banned CapCut and TikTok along with 58 other Chinese apps on 29 June 2020.[135] The ban was made permanent in January 2021.[136][72] In March 2021, the Indian government froze ByteDance's bank accounts in the country for alleged tax evasion, which ByteDance disputed.[137]
In December 2022, Taiwan's
Mainland Affairs Council announced an investigation into ByteDance on suspicion of operating an illegal subsidiary in the country.[139] The company reportedly registered "Tiktoktaiwan Co Ltd" in March, which changed its name to "ByteDance Taiwan" in November.[140]
In 2019, ByteDance's subsidiary TikTok was fined by the
Federal Trade Commission (FTC) for violating the
Children's Online Privacy Protection Act.[141][142] In response, ByteDance added a kids-only mode to TikTok which blocks the upload of videos, the building of user profiles, direct messaging, and commenting on other's videos, while still allowing the viewing and recording of content.[143]
TikTok and ByteDance have come under US lawmaker scrutiny due to fears of surveillance by the
Chinese government.[144] U.S.
President Donald Trump wanted TikTok to be sold or be banned from app stores in the country. His
executive orders were later blocked by the courts and revoked by his successor
Joe Biden.[145][146][147][148] On 28 August 2020, China announced an update to its export control rules that, according to experts, could give Chinese authorities a say in any potential sale of ByteDance's technology to foreign firms.[149]
In March 2024 the
House of Representatives passed
a bill which, if passed through the Senate and signed by the President, forces ByteDance to divest TikTok or have the platform banned.[153] In April, the
United States Congress passed a modified version of the bill in a foreign aid package.[154][155] The bill was signed into law by President Joe Biden on April 24, 2024, giving ByteDance until January 19, 2025, to divest TikTok.[156]
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Archived from the original on 1 April 2024. Retrieved 1 April 2024. The company started a $2.1 million marketing campaign across Senate battleground states such as Nevada, Montana, Wisconsin, Pennsylvania and Ohio, all represented by vulnerable Senate Democrats running for re-election this year. The ads will run on television, as well as on billboards and bus stops.