A potential resolution is emerging for the ongoing situation surrounding the popular short-form video app TikTok in the United States. A new report indicates that US TikTok users could soon have access to a distinct version of the application that would be owned by an American company. This development follows prolonged discussions and actions by the US government regarding the app’s ownership and data security concerns.
Background on the US Ban
The challenges for TikTok in the US stem from legislation passed by Congress. This law mandated a ban on the app, initially set to take effect on January 19.
The legislation included provisions allowing for a delay under specific conditions, which were reportedly not met. Despite this, former President Trump issued an executive order pausing the ban’s enforcement, first for 75 days, followed by another 90-day extension granted more recently.
During this period, major platforms like Apple initially removed TikTok from their US app stores. TikTok was later reportedly guaranteed immunity by the Department of Justice (DOJ), allowing its return. The legal validity of the executive orders and the immunity guarantee has been questioned by some legal experts. The core issue raised by US officials has been the potential for the Chinese government to access user data or influence content through TikTok’s parent company, ByteDance. The Chinese government has consistently stated it would oppose any forced sale of the app, particularly concerning its core technology like the recommendation algorithm.
Proposed Solution: A Separate US Version
According to a report in The Information, a new path forward may have been found. The report, which is paywalled, suggests TikTok is developing a new iteration of its application specifically for users in the United States.
This new US-focused app is reportedly being built ahead of a planned sale to a group of American investors. Under this proposed structure, the main, global version of the TikTok app would remain under Chinese control, while a distinct, “forked” version would be sold and distributed only within US app stores.
The target timeline for this new app version is reportedly September. The Verge has cited the report, stating TikTok staff are developing this new app, internally referred to as “M2” compared to the current app’s “M” designation, with a planned release date for app stores set for September 5th.
Stylized graphic representing the TikTok app logo, illustrating a potential separate version for US users under American ownership
Challenges Ahead
While this proposed solution appears to offer a potential compromise to resolve the US ban issue, it faces significant hurdles. Crucially, any such deal would require approval from the Chinese government.
Beijing has previously voiced strong opposition to any move that would transfer control of TikTok’s algorithm, which is considered central to the app’s success and engagement model, to US entities. The algorithm, which drives the personalized video recommendations users see, is widely viewed as TikTok’s most valuable intellectual property. Gaining necessary approvals from both the US and Chinese governments will be a critical next step for this proposed separate US app version to become a reality.
Conclusion
The possibility of a distinct, US-owned version of TikTok for American users presents a potential pathway to navigate the current regulatory challenges and avoid a full ban. However, the successful implementation of this proposal hinges on obtaining the necessary approvals, particularly from the Chinese government, which has previously resisted such transfers of core technology.
Readers interested in the ongoing developments around global technology regulation and international business can explore related articles on topics such as data privacy laws, cross-border technology ownership, and the geopolitical implications of digital platforms.
