"The deal creates a new U.S.-only version of the app, bringing it into compliance with a law signed by President Joe Biden on April 23, 2024, and upheld by the Supreme Court on Jan. 17, 2025. Specifics of the deal remain to be hammered out, but some details are emerging. These include what will happen to the video-sharing app's core algorithm-and what that means for TikTok's millions of U.S. users."
"The Chinese government has indicated it will not permit ByteDance to sell the algorithm, because it is classified as a controlled technology export, per Chinese law. Meanwhile, U.S. tech industry executives and some lawmakers say compliance with the law requires the algorithm to be under American control. The deal as proposed includes licensing the algorithm so that it remains Chinese intellectual property while the U.S. version of the app continues to use the technology."
ByteDance signed an agreement to sell a majority stake in TikTok to a group of U.S. investors, with President Trump announcing a preliminary deal on Sept. 19, 2025 after talks with Xi Jinping. TikTok aims to close the transaction by Jan. 22, 2026 pending approvals from Chinese and U.S. authorities. The sale would create a U.S.-only version of the app to comply with a law enacted April 23, 2024 and upheld by the Supreme Court. China says the algorithm is a controlled export and will not be sold. The proposed deal would license the algorithm as Chinese intellectual property while allowing continued use in the U.S. app. The algorithm remains central to user experience and engagement.
Read at Fast Company
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