TikTok Disputes Claims of Developing US-Only App Amid Legal Challenges

TikTok is disputing a Reuters report that claims the short-video app is cloning its algorithm to potentially offer a separate version for US users. Sources “with direct knowledge” of the project reported that this effort began late last year, involving hundreds of engineers working to separate millions of lines of code.

This initiative appears aimed at appeasing US lawmakers who passed a law in April requiring TikTok to sell its US-based operations by January 19, 2024, or face a ban. However, TikTok has stated that the “qualified divestiture” mandated by the law would be impossible. On Thursday, TikTok denied the accuracy of the Reuters report, reiterating its position that a sale is not feasible.

“The Reuters story published today is misleading and factually inaccurate,” TikTok’s Policy account posted on X (formerly Twitter). “As we said in our court filing, the ‘qualified divestiture’ demanded by the Act to allow TikTok to continue operating in the United States is simply not possible: not commercially, not technologically, not legally. And certainly not on the 270-day timeline required by the Act.”

It remains unclear which parts of the Reuters report are being disputed by TikTok. A TikTok spokesperson mentioned that “while we have continued work in good faith to further safeguard the authenticity of the TikTok experience, it is simply false to suggest that this work would facilitate divestiture or that divestiture is even a possibility.”

TikTok is currently suing to block the US law on First Amendment grounds. A court has fast-tracked the legal challenge, with oral arguments set for September and a ruling expected by December 6. This timeline leaves room for a potential Supreme Court challenge, as Reuters reported.

Meanwhile, TikTok appears to be exploring all options to comply with the US law, including separating its code base and considering open-sourcing parts of its algorithm. However, separating the code proves complex and fraught with compliance and legal issues, Reuters’ sources noted. Each line of code must be reviewed to determine its suitability for the new code base.

Creating a US-only content-recommendation algorithm could allow TikTok US to operate independently and address lawmakers’ concerns over potential Chinese government espionage. However, the new algorithm may not perform as well as the existing one, possibly affecting the popular For You Page recommendations, according to sources.