ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

As TikTok Faces a Possible Ban, Here's How it Restricts Freedom of Expression Among Employees

TikTok faces backlash as it enforces stringent policies amidst heightened national security concerns and political scrutiny.
PUBLISHED MAR 16, 2024
Cover Image Source: TikTok's RSU forfeiture policy sparks controversy | Getty Images | Photo by Drew Angerer
Cover Image Source: TikTok's RSU forfeiture policy sparks controversy | Getty Images | Photo by Drew Angerer

TikTok has evolved into a popular social media platform where people can express their opinions and have open discussions about every aspect of life from politics to finance. Recently TikTok users also came out in support of the platform when a bill that could pave the way for a ban on it was passed in the US. But while others defend it as a space for free speech and expression, TikTok has enacted a strict policy that bars both current and former employees from criticizing the platform. It has explicitly stated that negative comments about the company, its affiliates, or fellow employees could lead to the forfeiture of restricted stock units (RSUs), a key component of the compensation structure.

Unsplash | Photo by Solen Feyissa
Image Source: Unsplash | Photo by Solen Feyissa

As reported by Fortune, TikTok's shareholder agreement outlines the provision, indicating that RSU holders are explicitly prohibited from making "critical, adverse, or disparaging" remarks about the company. Violating this clause, the agreement specifies, could result in the immediate forfeiture of all restricted share units held by the employee.

The policy gained public attention when Patrick Spaulding Ryan, a former employee, raised concerns about the disparagement clause on his LinkedIn profile. He revealed that he was excluded from TikTok's recent buyback offer for both current and former employees, leading him to believe that he is now a target for the company.

Former President Donald Trump | Getty Images | Photo by Drew Angerer
Image Source: Former President Donald Trump | Getty Images | Photo by Drew Angerer

This development comes at a time when TikTok faces increased scrutiny, particularly in the United States. Former President Donald Trump has labeled the Chinese social media app a national security threat, but at the same time, he acknowledged the potential negative consequences of banning it, including potential benefits to competitors like Facebook.

The backdrop of this statement coincides with U.S. lawmakers considering a bill that would compel TikTok's Chinese owner, ByteDance, to divest the app within six months. The app, widely used by almost 170 million Americans, has become a focal point of discussions regarding its ownership and potential risks.

"I'm not looking to make Facebook double the size. And if you ban TikTok, (then) Facebook and others, but mostly Facebook, will be a big beneficiary. And I think Facebook has been very dishonest," remarked Trump.

 In this photo illustration the logo of Chinese media app for creating and sharing short videos TikTok, also known as Douyin is displayed on the screen of a smartphone on September 18, 2020 in Paris, France. The United States on Friday announced a ban on downloading TikTok and WeChat apps, which are very popular with young people, from Sunday, with the two Chinese apps facing accusations of spying for the benefit of China.|Getty Images|Photo by Chesnot
Image Source: TikTok | Getty Images | Photo by Chesnot

TikTok, in response to concerns about data security, has assured the U.S. Congress that it is not under the control of the Chinese government. "There is no truth to the claim that TikTok has made U.S. user data available to the Chinese Communist Party. The Chinese Communist Party has neither direct nor indirect control of ByteDance or TikTok," the company said in a statement.

Recent intelligence reports have raised alarms, suggesting that TikTok accounts associated with a Chinese propaganda arm targeted candidates from both political parties during the 2022 U.S. midterm elections.

TikTok CEO Shou Zi Chew Testifies | Getty Images | Photo by Chip Somodevilla
TikTok CEO Shou Zi Chew Testifies | Getty Images | Photo by Chip Somodevilla

As TikTok encounters growing scrutiny and regulatory pressures, the decision to implement strict policies regarding employee criticism reflects the challenges the platform faces in maintaining trust and credibility.

"We welcome the opportunity to set the record straight about TikTok, ByteDance, and the commitments we are making to address concerns about U.S. national security before the House Committee on Energy and Commerce. By sharing details of our comprehensive plans with the full committee, Congress can take a more deliberative approach to the issues at hand," a spokesperson said.

MORE ON MARKET REALIST
Most shoppers are aware of Costco's warehouse stores but that's not all they have.
9 hours ago
These deals will be available until November 16, so it's best if one hurries and gets the products for cheap.
9 hours ago
The contestant made Harvey laugh harder than a lot of people have in recent history.
9 hours ago
The business will be focusing mainly on its home state and aims to accelerate growth just there.
11 hours ago
The contestant said that a lot of people believed she looked like Disney princess Snow White.
3 days ago
The expert valued the item at a lot less than what the guest wanted for it.
3 days ago
The host could not stop laughing for a while after hearing the answers.
3 days ago
The unprecedented halt of SNAP benefits and tarriffs will hurt the supermarket chain.
3 days ago
These days, the sale starts way before the actual Black Friday so that customers can beat the rush.
3 days ago
Executive members have complained about a lack of staff during early hours, which means they have to wait longer.
3 days ago
Despite all the criticism, there were still some who supported her, although she did not win.
3 days ago
Even after over 40 years on the show, White admitted that a few things still get her heart racing.
3 days ago
She even claimed that the product later started to smell like butane, which was concerning.
3 days ago
She and Drew Carey pretended that it was a planned fall and even bowed to the audience.
3 days ago
The business makes a big part of its revenue from its membership plans, and it hopes to bolster them
4 days ago
A couple of videos that claimed so have gone viral on TikTok, causing the masses to panic.
4 days ago
The host seemingly did not want the compliment at first, but his demeanor changed later on.
4 days ago
Fans of the show were impressed with her skills, but the Bonus Round was a bit too tough.
4 days ago
The rumor had never been substantiated with facts but it still swirled around for many years.
4 days ago
The entrepreneurs did not want to disclose their costs on TV, which Mark Cuban did not take well.
5 days ago