If TikTok doesn't sell its assets, the short-form video app may be banned in the US. Several companies are lined up to purchase the app, but now there's a new problem---the sale might not include TikTok's bread and butter: its algorithm.
US President Donald Trump is standing firmly behind his September 15th, 2020 deadline for the TikTok sale. TikTok already has a few big-name bidders, but its parent company, ByteDance, has yet to make a deal.
An article from the South China Morning Post revealed that ByteDance might not give up TikTok's recommendation algorithm. This algorithm is responsible for TikTok's For You page, which provides users with an endless stream of suggested content.
An anonymous source detailed ByteDance's alleged new selling conditions to the South China Post, claiming:
The company [ByteDance] will not hand out source code to any US buyer, but the technology team of TikTok in the US can develop a new algorithm.
China's new export laws will undoubtedly influence the sale of TikTok's algorithm. The updated export policy puts restrictions on artificial intelligence, a technology that TikTok's algorithm is based on. In the end, TikTok will likely have no choice but to comply with China's new rules.
TikTok's biggest bidders, Oracle and the Walmart-Microsoft duo, are reportedly aware of ByteDance's alleged refusal to sell TikTok's most essential piece of code. There's still no word on how this rumored change will affect the TikTok deal.
If need be, can the US-based buyer succeed in replacing TikTok's recommendation algorithm? Without that line of code, TikTok probably won't be the same.
No matter which bidder ends up acquiring TikTok, it'll have some important decisions to make. The missing algorithm might take some time to reconstruct, which may mean a TikTok blackout following its transfer to a new owner.
Hopefully, the buyer will also take the time to implement new security protocols, dissolving TikTok's reputation as a national security threat.
