Gadgetleak

No 1. Top Gadget Reviews and Game Blog.

News

ByteDance Prefers TikTok Shutdown Over Divestment Amid US Regulatory Pressure

ByteDance, the parent company of TikTok, faces mounting pressure from the US government following the approval of a significant national security package signed into law by President Joe Biden.

The new regulation mandates ByteDance to either sell TikTok’s US operations to a domestic entity within nine months or risk the platform’s effective ban.

Reuters reports a defiant stance from ByteDance, revealing the company’s reluctance to comply with the divestment requirement. Instead, ByteDance expresses a preference for shutting down TikTok in the US altogether. Central to this resistance is the recognition of TikTok’s algorithms as integral to ByteDance’s core operations, rendering a potential sale unfeasible.

ByteDance intends to challenge the regulatory measures in court, aiming to thwart the implementation of the legislation recently passed. Meanwhile, amidst speculation, The Information had suggested the possibility of ByteDance considering a majority stake sale in TikTok, excluding its algorithm. However, ByteDance swiftly refuted these claims in a press release on the Chinese media platform Toutiao.

Leave a Reply

Your email address will not be published. Required fields are marked *