- ByteDance, the Chinese company that owns the TikTok short video app, plans to sell the app without the algorithm that powers it South china morning post reported.
- The TikTok algorithm supports the "For You" page of the app, where users can discover new content.
- Last month, the Chinese government introduced new restrictions that would prohibit ByteDance from selling its algorithm without first seeking approval from Chinese officials.
- The company has until Tuesday, September 15, to sell TikTok under an August ordinance from President Donald Trump that targets the company.
- You can find more stories on the Business Insider homepage.
ByteDance, TikTok's Chinese parent company, is now planning to sell the popular video-based app without the algorithm that powers it South china morning post reported on Sunday.
"The company [ByteDance] will not be distributing any source code to a US buyer, but TikTok's US technology team can develop a new algorithm," an unnamed source familiar with the discussions told the South China Morning Post.
TikTok representatives did not immediately return Business Insider's request for comment.
The TikTok algorithm controls TikTok's main page, known as the "For You" page. This will give the users of the app new videos and trends.
Experts previously told Business Insider's Chris Stokel-Walker that any company that buys TikTok's U.S. operations would have trouble if a sale of the app didn't include the algorithm, arguing that the technology is that of its competitors used is superior. If TikTok was sold without its algorithm, its new buyers would have to develop their own to replace it.
The Sunday report was released in late August following a move by the Chinese government when an already enforced list of "prohibited and restricted technology exports" was updated to include "personalized information recommendation services based on data analytics" that incorporate the TikTok algorithm. The company would need to seek approval from the Chinese government before any sale that includes the algorithm.
ByteDance has until Tuesday, September 15, to divest its US operations under President Donald Trump's August 6th executive order. The Executive Order prohibits US companies from doing business with ByteDance from September 20, Business Insider previously reported.
Bipartisan concerns about Chinese ownership of the app have been going on for months, as lawmakers have raised concerns that the company may be required Share US user data with the Chinese government under Chinese law. The company has repeatedly denied allegations of sharing US data with the Chinese government.
While US leaders have been raising concerns about TikTok for months, the app has more recently been targeted by President Donald Trump, who had signed two executive orders for the company by Aug. 14.
Sunday too Axios reported that Oracle had outperformed Microsoft to become the most likely buyer of TikTok, although it reported the situation was still "fluid" and there may be no deal at all. On Friday, Trump said he would not extend the deadline for ByteDance to sell the app.