According to a Reuters report citing four unnamed sources, TikTok’s owner, ByteDance, is scrutinizing its legal moves in the US. If the efforts fail, the parent company is considering shutting down TikTok in the US market.
ByteDance may prefer to give up TikTok in the US rather than sell it
Selling TikTok may not be easy for ByteDance. TikTok’s secret formula that makes it so addictive, namely its proprietary algorithms, is an important part of ByteDance’s technology inventory. According to the report, these algorithms are jewels among ByteDance’s tech assets.
Sources added that although TikTok is popular, it doesn’t make a lot of money for ByteDance. So shutting down the app won’t hurt the company’s finances too much. The company will also keep TikTok’s algorithms.
In case TikTok disappears in the US, around 170 million users will have to look for other alternatives.
US President Biden signed the bill prepared for the popular social media platform. Accordingly, TikTok is officially banned in the USA.
This news contradicts another news that emerged a few days ago. According to that report, ByteDance was considering selling most of TikTok’s US organization. The company wanted to sell to a company outside the tech world and wanted to keep the video recommendation algorithm, the report claimed. But ByteDance denied that report.
Last week, the company announced that it would not hand over TikTok to any US company or give up any part of the platform.
The new law in the US, approved by Joe Biden, gives ByteDance the option to sell or shut down TikTok in the US and gives it until January 19, 2025 (with the possibility of an extension) to do so. US authorities are concerned that China is tracking Americans and collecting various data through TikTok.
TikTok’s CEO Shou Zi Chew expressed confidence that the company would prevail in court. “We are confident and will continue to fight for your rights in the courts. The facts and the Constitution are on our side and we expect to win.”
The Turkish Grand National Assembly (TBMM) Digital Media Commission is set to discuss potential sanctions against TikTok.
As you know, a bill was being prepared in parliament to shut down TikTok in Turkey recently. If there is a similar situation, TikTok will neither sell its Turkish leg to a company of Turkish origin, nor does it look like it will withdraw immediately.
It will first seek its legal rights and if it cannot win the case, it seems like it will pack its bags and withdraw from the country. However, the reason for banning TikTok in the US is not the same as the reason for banning it in Turkey.
TikTok CEO Shou Zi Chew made a statement regarding the approval of the bill to ban the application in the USA.
As we mentioned before, the US suspects that China is stealing the data of US citizens through TikTok. The reason in Turkey is the disruption of the Turkish family structure…
What do you think? Please don’t forget to share your thoughts with us in the comments section below.
We want to keep you updated with notifications.