ByteDance, the Chinese parent company of TikTok, stated that it has no plans to sell the social media platform following the signing of a bill by President Joe Biden, which could lead to a nationwide ban of the app. The company refuted claims that it was exploring the sale of TikTok’s US business without the algorithm that recommends videos to users. They attached screenshots of a report by The Information, which cited sources with knowledge of deliberations. This is the first official response by ByteDance on the matter since the legislation was passed in the US.
The legislation, part of a foreign aid package to support Israel and Ukraine, requires TikTok to find a new owner within months or face a ban in the US, its largest market with 170 million users. TikTok’s CEO, Shou Chew, reassured users in a video post that the company would fight in the courts to remain online in the US. The bill poses a significant risk to TikTok, given US officials’ concerns about Beijing’s influence over the app. The Chinese government has expressed strong opposition to a forced sale of TikTok and has the legal ability to block any such transaction.
TikTok’s algorithms, which drive user engagement on the app, are considered valuable by Chinese authorities, who have taken steps to ensure they can veto any sale of the technology. US lawmakers have raised concerns about Beijing potentially accessing user data or manipulating content on the platform, despite little evidence to support these claims. As a China-based company, ByteDance is subject to strict national intelligence, data security, and cybersecurity laws, including requirements to assist with intelligence gathering, raising additional concerns among foreign governments.
China amended its National Intelligence Law in 2018, obligating organizations and citizens to support national intelligence efforts. This legal framework means that ByteDance could be compelled to cooperate with intelligence activities, leading to fears of potential data sharing or manipulation. Several countries, including India, have already taken action to restrict TikTok over similar concerns. The US law represents one of the most sweeping measures against the app, reflecting the broader geopolitical tensions between the US and China. ByteDance’s stance on not selling TikTok indicates a commitment to navigating these challenges and maintaining its presence in the US market.
Despite the uncertainty surrounding TikTok’s future in the US, ByteDance remains dedicated to defending its interests and overcoming regulatory hurdles in its most significant market. The company’s decision not to sell TikTok reflects its confidence in the platform’s value and its ability to address national security concerns raised by US lawmakers. The ongoing legal battle and regulatory environment surrounding TikTok highlight the complexities of operating a Chinese-owned tech company in the global market, where geopolitical tensions and data security issues continue to impact the industry. ByteDance’s refusal to sell TikTok underscores its determination to protect its business interests and maintain a presence in the increasingly competitive social media landscape.
