The owner of ByteDance, the Chinese company that developed the TikTok app, is considering shutting down TikTok in the US if it loses court cases against government demands to sell the app to an American company. The reason lies in the reluctance to sell the valuable algorithms on which TikTok is based.
TikTok in the US
TikTok Algorithms
The algorithms that TikTok runs on are key to parent company ByteDance and its other products in China. Selling these algorithms together with TikTok is extremely unlikely:
- The algorithms are protected by the intellectual property of ByteDance in China, which makes them difficult separation from the parent company.
- The process of separating the algorithms from the American part of TikTok is extremely complicated.
- ByteDance will not agree to sell its most valuable assets – algorithms – to competitors.
Export Control Law
In 2020, China passed the Export Control Law, which restricts the export of controlled goods, such as algorithms, from code and similar data or technology. This makes it difficult to sell TikTok along with its algorithms.
Legal disputes
TikTok plans to challenge a law signed by President Biden that requires TikTok to be sold by January 19, 2024, otherwise the app will be banned in the US. The deadline can be extended by three months if ByteDance shows progress in solving the problem.
Concerns about data security
US senators approved the law due to concerns that China could obtain access or spy on the data of US users through TikTok.
TikTok Financial Information
ByteDance does not publicly disclose TikTok's financial information. The company gets most of its revenue in China from other applications, and about 25% of revenue last year came from the US. Due to the privacy of the data, it is difficult for experts to estimate the value of TikTok.
Previous attempts to ban
In 2020, the Trump administration already tried to ban TikTok and WeChat in the US, but the courts prevented it. Since then, the app has faced partial bans and attempted outright bans in the US and other countries.
Glossary
- ByteDance is a Chinese technology company, the owner of TikTok and other applications.
- TikTok is a popular video hosting and social network developed by ByteDance.
- Douyin is a ByteDance application for the Chinese market, an analogue of TikTok.
- WeChat is a popular messenger and social network developed by the Chinese company Tencent.
Link
- https://www.reuters.com/technology/bytedance- prefers-tiktok-shutdown-us-if-legal-options-fail-sources-say-2024-04-25/
- https:// www.reuters.com/article/idUSKBN27305X/
Answers to questions
Why does TikTok's owner want to shut down the app in the US instead of selling it?
How do TikTok algorithms work and why are they so difficult to separate?
How does Chinese law affect TikTok in the US?
How does TikTok's owner plan to deal with US demands to sell the app?
Why does the US want to ban TikTok and what were the previous attempts to do so?
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Discussion of the topic – TikTok may stop working in the US: the owner is considering the option of closing the application
The Chinese company ByteDance, the owner of the popular TikTok app, may close it in the United States if it loses court cases against the American government over the ban on the use of the application. This was reported by anonymous Reuters sources.
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