TikTok CEO Kevin Mayer on Wednesday defended his company's practices as it faces increasing pressure from the U.S. government, competitors and its creators over the app's ties to China.
The popular streaming app, owned by China-based tech company ByteDance, has been used by many Hollywood celebrities and music artists to promote their songs and engage with fans. But its ties to China have caused TikTok's data practices to come under scrutiny and competitors have used that to their advantage in attempt to poach TikTok's popular video creators to their platforms.
On Wednesday, Mayer said the company, which has an expanding presence in Southern California, plans to increase its $200 million creator fund in the U.S. to $1 billion over the next three years.
The former Walt Disney Co. executive also called on all companies to disclose their algorithms, moderation policies and data flows to regulators. TikTok is opening a transparency center in Culver City where outside experts can monitor its practices.
"The entire industry has received scrutiny, and rightly so," Mayer said in a statement posted on TikTok's website. "Yet, we have received even more scrutiny due to the company's Chinese origins. We accept this and embrace the challenge of giving peace of mind through greater transparency and accountability. We believe it is essential to show users, advertisers, creators, and regulators that we are responsible and committed members of the American community that follows U.S. laws."
The company has said that it has not and will not give U.S. customer information to the Chinese government.
But some creators, including Josh Richards with more than 20 million TikTok followers, said he's concerned about how his data is handled. He and three other popular creators on Tuesday announced they will leave TikTok for L.A.-based music video app Triller. Richards also has a financial interest in the move: He took on a new executive role at Triller and became an investor in the company.
Meanwhile, other creators are looking to grow their audiences on Instagram, which will launch a new feature called "Reels" next month in the U.S. Mayer called Reels a "copycat product" to TikTok, and his company welcomes the competition.
"But let's focus our energies on fair and open competition in service of our consumers, rather than maligning attacks by our competitor – namely Facebook – disguised as patriotism and designed to put an end to our very presence in the US.," Mayer said.
"Without TikTok, American advertisers would again be left with few choices," he added. "Competition would dry up and so too will an outlet for America's creative energy."