TikTok developing dedicated algorithm for US amid potential ban: report

TikTok logo / Photo credit: 123rf

TikTok is creating a new version of its recommendation algorithm, dedicated to its 170 million users in the US, reported Reuters, citing sources briefed on the matter.

This is due to congressional demands that TikTok divest its US operations to prevent a ban on the platform in the country. Due to regulatory pressure, work on an independent algorithm began late last year, the sources said.

This might set the stage for TikTok to sell off its US business, but insiders insist such a move is not in the cards for the short-video app just yet. A few suitors have reportedly considered a TikTok buy, including Shark Tank judge Kevin O’Leary and former Google exec Eric Schmidt.

ByteDance, TikTok’s parent firm, has asked engineers in the US and China to review lines of code, aiming to set up a standalone database for its platform in the US. This database will not be reliant on the systems of Douyin, the Chinese version of TikTok.

This separate codebase will also not include any Chinese user data, which is crucial for TikTok to show that its US operations are independent of ByteDance. This is important given the US’ current political concerns over data safety, the report noted.

Still, this task’s technicalities are daunting, as insiders estimate it could take more than a year to finalize the separation of the code.

Last year, TikTok generated US$16 billion in revenue for the US market, while ByteDance posted US$120 billion, according to the Financial Times. This signifies that TikTok accounts for only a small part of the latter’s earnings.

There were also earlier reports saying that ByteDance might opt to shut down its US operations instead of selling it if it loses its battle against the proposed ban being enforced under law.

Both TikTok and ByteDance have filed lawsuits challenging the law, claiming it violates their First Amendment rights.

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