Social media platforms' use of nonmarket strategy to manage politically contentious issues in host countries: The case of TikTok in the US market

Abstract

Global digital platforms span diverse domains, from social media to online marketplaces, and wield significant influence within their respective sectors. The rise of social media platforms, in particular, has sparked growing concern over their impact on individual behaviour, political discourse, and the management of personal data. These concerns have led to mounting institutional pressure from governments and the public, especially around issues of content curation, moderation, and data security. Responding to such pressures is complex for platforms, as they operate across multiple jurisdictions with overlapping yet often contradictory institutional demands. This paper investigates the institutional pressures faced by social media platforms in host-country contexts, focusing on their influence over users through content moderation and data governance. It examines how these platforms deploy nonmarket strategies to navigate these challenges, using TikTok's operations in the US market as a case study. The findings reveal that despite persistent scrutiny from the US government, TikTok has employed a range of nonmarket actions. These include direct actions such as enhancing content moderation and pursuing legal avenues, as well as indirect approaches like mobilising its user base. This study offers insights into the unique political challenges social media platforms encounter in host-country contexts and highlights the platform-specific strategies they develop to address these pressures.