ByteDance prefers TikTok shutdown in US over sale: Report
ByteDance prefers TikTok shutdown in US over sale: Report
The Facts
Following President Joe Biden's signing of a law on Wednesday threatening to outlaw the well-known app TikTok unless ByteDance divests its ownership, TikTok immedately responded that it will legally challenge the "unconstitutional ban."
If TikTok owner ByteDance loses the legal battle to prevent the platform from being banned from US app stores, the Chinese company would rather shut down its US operation than sell it, according to four sources.
The Spin
This is not about national security; it is commercial plunder. TicTok plans to fight the new law in court, claiming it is unconstitutional. The facts and the law are on its side, claiming it is a First Amendment issue. If the company's legal struggle with the US court fails, ByteDance will not sell the company to an American business. The algorithm is the company's most valued feature and outperforms its competitors. Selling it is not an alternative. The best option is to close its US operations.
The parent company of TikTok, ByteDance, must divest its ownership as the app is deemed a potential threat to national security. Failure to do so would result in a ban of the app in the US. Chinese companies are legally required to submit data to the Chinese government, causing concerns over user data security and misinformation. Therefore, the Biden administration is advocating for the sale of TikTok to a government-approved buyer due to worries over its impact on national security and global data privacy.
