Insider on US ban:

ByteDance would rather give up TikTok than sell it

According to insiders, the crux of the matter is the company's algorithm, which cannot be separated from ByteDance due to intellectual property rights.

(Bild: Rafael Henrique – stock.adobe.com)

In view of the impending ban on TikTok in the USA, Chinese parent company ByteDance would rather close the short video app than sell it, according to insiders. This would apply once all legal means against a ban have been exhausted, four people familiar with the matter said on Thursday.

The sticking point is the Group's algorithm, which cannot be separated from ByteDance due to intellectual property rights. Alongside user data and product management, this is one of the Chinese company's most valuable assets.

ByteDance declined to comment and referred to the company's own media platform Toutiao. There, the company announced that there were no plans to sell TikTok. This was preceded by a report on the tech platform "The Information", according to which scenarios for a sale of TikTok's US business without the video recommendation algorithm were being examined.

Deadline until January 19
The US parliament had recently passed a law that obliges TikTok's Chinese parent company ByteDance to sell its US business within a year. Otherwise, access to the platform would be blocked. By signing the bill, US President Joe Biden set the deadline for January 19 - one day before his term of office could end.

Due to their proximity to the Chinese government, ByteDance and the app TikTok, which is particularly popular with young people, are suspected of espionage in numerous countries. Authorities fear that the People's Republic could take control of users' personal data and manipulate public opinion.