BEIJING.- The Chinese technology giant, ByteDancecategorically rejected the idea of selling its popular social network TikTok, despite the pressure exerted by a new law approved by the United States Congress. This legislation threatens to ban the platform if it does not cut its ties with China, citing concerns about possible espionage and propaganda activities by the Asian government.
Speculation about a possible sale had intensified after the specialized website The Information reported that ByteDance was considering scenarios to get rid of TikTok, even without the algorithm that drives its success. However, the company flatly denied these claims.
“Reports from foreign media about ByteDance exploring the sale of TikTok are not true,” the company said in a statement on its Toutiao social network. “ByteDance has no plans to sell TikTok,” he added.
This confrontation between ByteDance and US authorities is not new. During the previous administration, former President Donald Trump tried unsuccessfully to ban TikTok in the United States. However, the company consistently denied any ties to the Chinese government and emphasized its commitment to protecting American users' data.
TikTok will challenge the new law
The CEO of ByteDance, Shou Zi Chew, announced that the company will challenge the new law in court. Although some analysts suggest that national security arguments could outweigh concerns about freedom of expression.
The forced sale of TikTok, valued at billions of dollars, would be a complicated operation. Companies like Meta or Google, which could have the resources to acquire it, could face legal problems due to competition and antitrust issues.
Additionally, any sales deal would require approval from the Chinese government, which declared the algorithms protected technology. So far, Chinese authorities are firmly opposed to any attempt at a forced sale of the platform.
Although TikTok has achieved enormous popularity globally, it represents only a fraction of ByteDance's revenue. The company has experienced explosive growth in recent years and has become one of the most valuable companies in the world.
“TikTok US is a very small part of the global business,” said Mitchell Green of Lead Edge Capital. “If they expel it from the United States, we will not sell,” he said.
