ByteDance rejects US report about its purported plan since 2022 to divest TikTok’s operations in America

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TikTok owner ByteDance has again denied that it considered divesting the US operations of its popular short video platform, in response to a report by The Washington Post on Wednesday that such a plan existed in 2022.

In a brief statement on Thursday, Beijing-based ByteDance called on Chinese social media not to spread such misinformation after declaring the report as untrue.

This marked the third public denial from ByteDance after rejecting a report by US digital publication The Information in April that the firm was “exploring scenarios” to sell a majority stake in TikTok’s US operations. That followed its denial of a report by The Wall Street Journal earlier that month about co-founder Zhang Yiming having discussions of a sale to potential buyers.

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The official denials issued by ByteDance show the company’s confidence in challenging the legality of the US government’s divest-or-ban measure against the social media platform.

ByteDance rejects US report about its purported plan since 2022 to divest TikTok's operations in America

US President Joe Biden speaks after signing a US$95 billion foreign aid bill and a measure to ban TikTok in America at the White House on April 24, 2024. Photo: AFP alt=US President Joe Biden speaks after signing a US$95 billion foreign aid bill and a measure to ban TikTok in America at the White House on April 24, 2024. Photo: AFP>

ByteDance and TikTok filed a federal lawsuit earlier this month at the US Court of Appeals for the District of Columbia to block a US measure – signed into law by US President Joe Biden in April – that would force the Chinese firm to divest the short video platform’s operations in America or get banned from all app stores nationwide.

Their lawsuit argues that the law violates the First Amendment of the US Constitution, which protects free speech, as well as several other constitutional provisions.

ByteDance’s hardline stance against the US measure has earned the company public praise on the mainland for being “tough” against Washington.

That was in stark contrast to the situation of ByteDance in 2020, when the company was perceived as “kneeling down” quickly from pressure by former US president Donald Trump’s administration to sell TikTok’s operations in America to Oracle.

The facade of TikTok’s offices in Los Angeles, California. Photo: EPA-EFE alt=The facade of TikTok’s offices in Los Angeles, California. Photo: EPA-EFE>

A group of US TikTok creators this month also filed suit in federal court seeking to block the divest-or-ban measure against TikTok.

The Chinese government, meanwhile, has indicated that it would strongly oppose a forced sale of TikTok. Privately held ByteDance is subject to Chinese laws, which means regulatory authorities can veto any deal involving the sale or transfer of the platform’s technology.

In 2020, China’s Ministry of Commerce and Ministry of Science and Technology introduced regulations that would require government approval before ByteDance can sell or transfer the algorithms that power TikTok.