Unable to provide core technology… ByteDance “Rather than sell TikTok, we will discontinue U.S. services”

It has been reported that ByteDance is in the position of discontinuing services in the United States rather than selling its subsidiary TikTok.

On the 26th (local time), Reuters reported, citing multiple officials, that ByteDance plans to terminate TikTok services in the United States if its lawsuit against the recently passed ‘TikTok Compulsory Sale Act’ does not work.

The biggest reason ByteDance is not considering selling TikTok is because of its own algorithm-related patents. ByteDance holds patents related to TikTok’s video recommendation algorithm.

A ByteDance official said, “The algorithm used to operate TikTok plays a key role in ByteDance’s overall operation,” and added, “We believe there is little possibility of selling the TikTok app with such an algorithm built into it.”

On the 24th, U.S. President Joe Biden signed a bill banning video sharing platform TikTok from serving in the U.S. if it is not separated from its Chinese parent company, ByteDance, within 270 days (the president can extend 90 days).

With President Biden’s signature, ByteDance faces the fate of having to sell TikTok’s U.S. business rights or suspend services in the U.S. by January 19 of next year.

ByteDance immediately released a statement on this day and said that it had no plans to sell TikTok.

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