“ByteDance has no plans to sell TikTok.”
The official statement is from the Chinese parent company of TikTok – ByteDance.
It comes in direct response to a law passed by the US Congress that would ban the popular short video app in America unless it gets a new owner unrelated to China.
In their official profile on the Chinese platform Toutiao, ByteDance announced that they will not give in to the pressure of the US authorities.
The platform has already said it intends to challenge what it sees as an “unconstitutional law” in court.
ByteDance’s new statement came in response to an article in tech specialist website The Information that said the company is actually already exploring the potential sale of TikTok’s US operation.
According to the publication, the Chinese company was currently exploring the possibilities of how to get rid of profit from users and its content from the US without giving away the algorithm that powers the app itself.
However, the owners of TikTok are adamant – this is not true.
“Reports in foreign media that ByteDance will sell TikTok are not true,” the company said in a statement. Accompanying it is a screenshot of The Information article stamped with the words “false rumor” written in Chinese characters.
On Wednesday, US President Joe Biden signed legislation passed by Congress that would force TikTok to either change owners or shut down all of its operations in the US.
The new law is part of a U.S. effort to tighten controls on Beijing’s access to personal information of American citizens.
Washington and other Western countries have serious concerns about exactly how much control the Chinese Communist Party has over ByteDance and the data the company holds.
TikTok has repeatedly denied any claims that the Chinese government has any access to its users’ data or its system.
Minutes after Biden signed the law, TikTok released a video of the company’s CEO in which he criticized the actions of US authorities, addressing all users of the app.
“Make no mistake, this is a ban. A ban on TikTok and a ban on you and your voice. Politicians may say otherwise, but don’t be confused. Many of the bill’s sponsors recognize that banning TikTok is the ultimate goal,” he commented.
Shaw described the move by US authorities as “ironic” because “freedom of expression on TikTok reflects the same American values that make the United States a beacon of freedom”.
“Be assured that we are not going anywhere. We will continue to fight for your rights in the courts. The facts and the Constitution are on our side,” added the CEO of ByteDance.
According to TikTok, China’s ByteDance owns 20% of the shares, but has a controlling stake in the company.
About 60% is owned by institutional investors, including major US investment companies Carlyle Group, General Atlantic and Susquehanna International Group, and the remaining 20% is owned by its employees worldwide;
They also point out that three of ByteDance’s five board members are American.
The Chinese government also dismissed concerns about access to TikTok’s data as “paranoia.” From there, they warn that the ban on TikTok “will inevitably come back to bite the US”.
According to the texts passed by the Congress, the app has a period of 9 months to settle the sale before proceeding with a ban.
This period can be extended by another up to 3 months, if there are initiated actions on the acquisition of TikTok by another company.
However, many legal experts in the US are of the opinion that ByteDance’s cause in the US is far from lost, as the law may indeed violate the First Amendment of the country’s Constitution. The reason is that it targets a single company.
Previous attempts to have the app banned in the country were defeated in court.
If the ban does go into effect, it could cause some tremors in marketing communications, especially influencer marketing.
In all likelihood, the removal of American content from the platform will cause a serious blow to TikTok, as it will lead to the withdrawal of millions of users, and not only from America.
Currently, its application is also having problems in the European Union, and the entry into force of the American ban may also stimulate Brussels to take more aggressive actions to protect European consumers.
