If the Chinese tech giant ByteDance’s legal battle against the recently passed ban-or-sell policy fails, TikTok may shut down in the United States.
ByteDance, TikTok’s China- based parent company, prefers to let the app get shut down in the United States more than buy it if the Chinese company is unable to earn against the sell- or- ban legislation in court, four sources acquainted with the situation , told Reuters.
Lincoln NCAA college shaft vaulter Jessica Gardner looks at her cellphone Thursday, March 9, 2023, in Lincoln, Neb. ( AP Photo/Rebecca S. Gratz )
For the social network TikTok, Florin Vitan ( L ) and Alessia Lanza shoot a video for the incubator for TikTok influencers,” Defhouse.”  , ( Photo by MIGUEL MEDINA/AFP via Getty Images )
ByteDance does n’t want to sell TikTok because a sale would result in a foreign company getting their hands on the app’s algorithms, which are essential to the Chinese company’s overall operations.
Moreover, TikTok makes up a small , share of , ByteDance’s total revenues and daily active users, giving the company more reason to let the app just shut down in the United States if the Chinese tech giant ca n’t find a way around the recently passed U. S. legislation, sources added.
ByteDance believes that a U.S. shut down of TikTok would only have a modest effect on the company’s business while allowing it to retain its core algorithm for its own use.
Toutiao, a , media app owned by , ByteDance, said in a speech on Thursday that the Chinese tech giant has no plan to sell TikTok.
On Wednesday, TikTok CEO , Shou Zi Chew said the cultural internet platform , plans to file a complaint against the restrictions- or- market regulations that President Joe Biden signed into law.
The Chinese firm, controlled by a hostile foreign land, unfortunately told Americans that it will “fight” for their “rights”, adding,” the Constitution is on our side”.
The nonpartisan bill, which was signed into law on Wednesday, requires ByteDance to promote TikTok within nine months or else be prohibited in the country. It comes after decades of concern from U.S. legislators and citizens over the parent company’s relationship with the Chinese Communist Party.
Given that a lot of American consumer data could end up in the hands of Taiwanese communists, and likely will do so, TikTok is viewed as a threat to national security. Importantly, lawmakers have now banned the game from government- issued devices.
Additionally, TikTok has also shown itself to be a threat to young people and teenagers, and it is facing numerous claims brought by a number of families who claim the social media platform immediately is to blame for their children’s deaths.
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