TikTok is preparing for a legal battle against a U.S. law that would require it to sever ties with its China-based parent company, ByteDance. This move, seen as a response to the escalating U.S.-China rivalry, poses a threat to the popular social media platform's future in the American market.
Beijing has encouraged TikTok to resist what it perceives as a hostile act by U.S. lawmakers, labeling it as an attempt to seize assets. Observers suggest that Chinese authorities are unlikely to approve a sale, viewing it as a concession to Washington.
The new U.S. law, signed by President Joe Biden, could pave the way for targeting other Chinese apps like Temu, potentially influencing U.S. allies to take similar actions. With 170 million American users, TikTok faces pressure to challenge the law, which mandates ByteDance to divest its stakes within a year to avoid a ban.
TikTok has vowed to contest the law, arguing that it infringes on users' free speech rights. The company remains confident in its legal position and is determined to prevail in the dispute.
The conflict over TikTok has heightened tensions between the U.S. and China, with both nations emphasizing the protection of their economic and national security interests. U.S. lawmakers express concerns about Chinese ownership potentially enabling Beijing to exert undue influence, particularly on young users.
If TikTok fails to overturn the law, the company may face challenges in disentangling its U.S. operations. The potential sale of TikTok's U.S. business, which could come at a high price, might limit the pool of interested buyers.
Moreover, uncertainties surround the fate of TikTok's algorithm, a key component of its success. ByteDance would be prohibited from controlling the algorithm in a U.S. spinoff, raising questions about the platform's future functionality and appeal.
Experts suggest that replicating TikTok's algorithm without access to the original technology could be a formidable task, potentially impacting the platform's competitive edge and user experience.
