Published 05:02 IST, September 14th 2020
ByteDance unwilling to sell TikTok's algorithm, wants US buyer to develop new code: Report
According to South China Morning Post reports, ByteDance could divest in the app to make space for a US buyer but is not going to hand over its source code.
ByteDance, TikTok’s parent company, is unwilling to part with the popular Chinese social media app's algorithm. According to South China Morning Post reports, ByteDance could sell or divest in the app to make space for a US buyer but is not going to hand over its source codes.
TikTok algorithm not for sale
In the past few months, the Trump administration has been clamping down and placing restrictions on popular Chinese apps such as TikTok and WeChat. Last month, US President Donald Trump signed two executive orders which stated that if TikTok was not sold to a US firm in 45 days from the signing of the order then the app's capacity to function in America would severely diminish. The Chinese messaging app, WeChat, also faces the same restriction.
According to reports, with the deadline for the sale of TikTok fast approaching, ByteDance has informed protentional buyers and interested parties of its decision. The deadline expires on Tuesday, September 15. The exclusion of the algorithm from the sale of TikTok will greatly affect the value of the app and thereby cause buyers to second guess their decision.
As per reports, the decision to not add the algorithm to the sale was made in order to comply with a new technology export control list that states that official permission is required if ByteDance wants to send TikTok’s algorithm abroad.
US President Donald Trump has repeatedly said that Chinese apps such as TikTok and WeChat are security risks as they allegedly share private user data with Beijing. This line of argument has been followed by other US government agencies as well.
(Image Credit AP)
Updated 06:09 IST, September 14th 2020