Technology/ Business: TikTok deal nears finish line as US and China negotiate algorithm access
A potential breakthrough in the long-standing TikTok standoff is emerging as U.S. and Chinese officials near a deal that would allow the popular app to continue operating stateside. Under the proposed framework, TikTok’s U.S. operations would be sold to a consortium of American companies reportedly including Oracle and investment firms Andreessen Horowitz and Silver Lake.
The heart of the agreement centers on TikTok’s coveted algorithm, the “secret sauce” responsible for its highly engaging user experience.
In a significant shift, China may permit parent company ByteDance to license but not sell the algorithm to the new U.S.-based entity.
This compromise aims to ease U.S. national security concerns while allowing ByteDance to retain control of its core intellectual property.
Despite the progress, challenges remain. U.S. lawmakers from both parties have expressed skepticism, warning that Chinese influence could persist under a licensing model.
Any final deal will require Congressional approval no small task in a divided political climate.
If finalized, the arrangement would avert a ban and preserve TikTok for its millions of American users, though experts caution the U.S. version may be a slower, “stripped-down” iteration of the global app.
Source: bbc.com
