"TikTok's Algorithm: Secrets Remain in Chinese Hands"
TikTok rejects offers for America-bound algorithm sale to interested buyers.
Social Media Platforms News Online Shopping Email Print Copy Link Despite the tight deadline, TikTok is yet to find a buyer in the U.S. The algorithm, however, remains off-limits to interested parties.
The pressure is mounting for TikTok to sell its U.S. operations, with the deadline set for just a few days. However, the recommendation technology, a crucial component of TikTok's success, is non-negotiable. As Frank McCourt, a potential American TikTok purchaser, states, the algorithm is considered Chinese intellectual property and is not for sale.
TikTok was expected to be sold off by its Chinese parent company ByteDance by January 19, as mandated by U.S. law. If no sale takes place, the app could face a shutdown in the U.S. President Donald Trump has granted a 75-day grace period, expiring on April 5. Trump hinted at a possible extension, but there's no legal basis for such an action.
In The Loop Dangers for Digital Natives TikTok Launches E-commerce Platform Last week, U.S. Vice President J.D. Vance suggested that a resolution for TikTok's U.S. presence would likely materialize by early April. So far, ByteDance and TikTok have expressed doubts about the feasibility of selling just the U.S. part of the app, as it would split the platform.
A New TikTok for the U.S.
McCourt made it clear on CNBC that the U.S. law demands the separation of Chinese technology in TikTok. His vision for a U.S.-based TikTok, dubbed "Project Liberty," prioritizes American technology. McCourt envisions a more transparent TikTok, allowing users to customize their own algorithm, rather than relying on a "black box" that collects user data and exerts influence. Tech giant Oracle is set to serve as the technical service provider.
Business Job Cuts Report TikTok Candid about User Data According to a report by The Information, ByteDance plans to propose the long-mulled "Project Texas" to Trump, which would see U.S. user data stored within the U.S. and Oracle overseeing data streams and software updates. However, the government of Trump's predecessor had concerns because TikTok would still be owned by ByteDance. For Europe, TikTok has a similar plan called "Project Clover" for data storage in Ireland.
Source: ntv.de, mpa/dpa
- ByteDance
- TikTok
- China
- Oracle
- USA
- The European Union and its Member States are closely monitoring the situation with TikTok, as its U.S. operations face potential restrictions due to its Chinese ownership.
- Despite Oracle's potential role as the technical service provider for a U.S.-based TikTok, known as "Project Liberty," the app's algorithm, considered Chinese intellectual property, is not anticipated to be accessible to European users.
- If "Project Texas" or any similar plan, such as TikTok's proposal for data storage in Ireland, dubbed "Project Clover," gains approval, it could lead to WhatsApp and other communication platforms becoming more competitive, as they would no longer have exclusive access to TikTok user data, which was previously supposed to be a strong point for the app.
