TikTok, the popular social media platform owned by Chinese company ByteDance, is facing pressure from the U.S. government to sell its operations in the country. Chinese officials have expressed discontent with this move, arguing that the U.S. is acting without just cause. Despite this, TikTok is exploring scenarios in which it could be acquired by a U.S. provider, following the approval of a bill that forces the company to separate from its Chinese ownership. With U.S. President Joe Biden signing off on the TikTok sale bill, the company is now considering its next steps, while China has vowed to oppose a full sell-off of the app.
China believes that the U.S. sell-off push will harm its reputation in international trade and has raised concerns about the impact of the sale on TikTok’s all-powerful recommendation algorithm. This algorithm is considered the app’s secret sauce and plays a crucial role in delivering personalized content to users. However, under China’s export-control rules, the sale of systematic algorithms is subject to government regulation, which may limit the transfer of TikTok’s back-end systems. This could significantly reduce the overall value of the app, which is currently estimated to be worth anywhere between $20 billion and $100 billion, depending on the inclusion of the algorithm.
The potential sale of TikTok raises questions about the future of its algorithm and the ethical considerations associated with its operations. Reports have indicated that TikTok’s algorithms may contain parameters intended to suppress certain types of content, such as posts from users deemed “too ugly, poor, or disabled for the platform.” While TikTok officials have clarified that these parameters were only used in the Chinese version of the app, concerns about the impact of such algorithms on user behavior remain. The ability of TikTok’s systems to detect specific visual elements and tailor content to user preferences raises significant ethical questions about the platform’s influence on user behavior.
The secrecy surrounding TikTok’s algorithm and the potential ethical implications of its operations present challenges for any potential sale of the app. ByteDance may not be inclined to provide full access to its algorithms, given the potential controversies and regulatory scrutiny associated with the technology. The question of how long TikTok’s algorithm can remain a secret and the impact of its operations on users’ behavior remain central to the discussions surrounding the company’s future. As TikTok seeks to navigate the complex regulatory environment and ethical considerations, the fate of its algorithm and its role in shaping user experience will be critical factors in determining the app’s next phase.