< < Less than three years after merging with Musical.ly, TikTok looked like it might just achieve something many have tried but few have accomplished: becoming an actual competitor with Facebook and Instagram.Then Donald Trump stepped in. After weeks of threats, the president delivered an ultimatum to TikTok and its owner ByteDance: sell the app’s US operations to an American company or it would be banned. He gave the company little more than a month — until Sept. 15 — to find a buyer and figure out how to disentangle itself from its Chinese parent company. More than a month later, TikTok’s future is still uncertain despite multiple interested buyers. China has fired back with new trade rules that could prevent a new owner from gaining access to TikTok’s most important feature: its recommendation algorithm.Now, as the clock ticks down to Trump’s mid-September deadline, TikTok and its potential buyers are frantically working to figure out what it all means for a deal. An algorithm-less TikTok is a very different TikTok, and there’s no guarantee that Microsoft or Oracle would be able to replicate the app’s current recommendation magic. At the same time, Facebook has seized the opportunity to launch its own TikTok competitor with Reels. The Instagram feature so far hasn’t had a ton of success in the US, but the company is pushing it hard in other countries.All that leaves TikTok in a precarious position. While the current uncertainty hasn’t affected its ability to keep its millions of users scrolling, that could change. If the company isn’t able to secure its future in the US, or is forced to relinquish the technology that makes it so addictive, the app’s influence could fade as quickly as it started.

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Less than three years after merging with Musical.ly, TikTok looked like it might just achieve something many have tried but few have accomplished: becoming an actual competitor with Facebook and Instagram.

Then Donald Trump stepped in. 

After weeks of threats, the president delivered an ultimatum to TikTok and its owner ByteDance: sell the app’s US operations to an American company or it would be banned. He gave the company little more than a month — until Sept. 15 — to find a buyer and figure out how to disentangle itself from its Chinese parent company. 

More than a month later, TikTok’s future is still uncertain despite multiple interested buyers. China has fired back with new trade rules that could prevent a new owner from gaining access to TikTok’s most important feature: its recommendation algorithm.

Now, as the clock ticks down to Trump’s mid-September deadline, TikTok and its potential buyers are frantically working to figure out what it all means for a deal. An algorithm-less TikTok is a very different TikTok, and there’s no guarantee that Microsoft or Oracle would be able to replicate the app’s current recommendation magic. 

At the same time, Facebook has seized the opportunity to launch its own TikTok competitor with Reels. The Instagram feature so far hasn’t had a ton of success in the US, but the company is pushing it hard in other countries.

All that leaves TikTok in a precarious position. While the current uncertainty hasn’t affected its ability to keep its millions of users scrolling, that could change. If the company isn’t able to secure its future in the US, or is forced to relinquish the technology that makes it so addictive, the app’s influence could fade as quickly as it started.

< < TikTok’s attempt to sell itself and avert a possible US ban may run into some complications. The Wall Street Journal reports that China has unveiled new restrictions on AI technology exports that could affect TikTok. The new rules bar the exports of tech like content suggestions, text analysis and voice recognition unless a company receives a license — technology TikTok uses in some cases.The Chinese government has issued a not-so-subtle warning to TikTok parent ByteDance in turn. Government advisor Cui Fan told the state-run Xinhua News Agency that ByteDance should “seriously and cautiously” consider stopping its sales talks for TikTok. Even if ByteDance no longer has a stake in TikTok, there would probably be some technology transfers that could violate the rules, the advisor said.The country’s Ministry of Commerce argued that the export list changes were overdue after remaining the same since 2008. It was important given the breakneck pace of technological improvement and China’s increasingly competitive output, according to officials.Neither ByteDance nor the Commerce Ministry has commented on the new rules.The move escalates an already intense dispute between China and the US. The two sides are already locked in a trade war, and the US has already implemented trade restrictions on companies like Huawei and ZTE over alleged security risks. The pressure on TikTok to drop ByteDance is an extension of this. In that regard, it’s not surprising that China is countering with tighter export limits. This theoretically pressures the US to make concessions and allow more access to Chinese tech.

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TikTok’s attempt to sell itself and avert a possible US ban may run into some complications. The Wall Street Journal reports that China has unveiled new restrictions on AI technology exports that could affect TikTok. The new rules bar the exports of tech like content suggestions, text analysis and voice recognition unless a company receives a license — technology TikTok uses in some cases.

The Chinese government has issued a not-so-subtle warning to TikTok parent ByteDance in turn. Government advisor Cui Fan told the state-run Xinhua News Agency that ByteDance should “seriously and cautiously” consider stopping its sales talks for TikTok. Even if ByteDance no longer has a stake in TikTok, there would probably be some technology transfers that could violate the rules, the advisor said.

The country’s Ministry of Commerce argued that the export list changes were overdue after remaining the same since 2008. It was important given the breakneck pace of technological improvement and China’s increasingly competitive output, according to officials.

Neither ByteDance nor the Commerce Ministry has commented on the new rules.

The move escalates an already intense dispute between China and the US. The two sides are already locked in a trade war, and the US has already implemented trade restrictions on companies like Huawei and ZTE over alleged security risks. The pressure on TikTok to drop ByteDance is an extension of this. In that regard, it’s not surprising that China is countering with tighter export limits. This theoretically pressures the US to make concessions and allow more access to Chinese tech.

< < It looks like Donald Trump is about to make good on his promise to go after TikTok. The Trump administration will soon force ByteDance, the Chinese company that owns TikTok, to sell the app to a U.S. Owner, Bloomberg reports.And there’s already one tech giant reportedly eyeing the video app: Microsoft. Fox Business reporter Charles Gasparino reports the company “is in talks to buy,” TikTok. The app, which has been downloaded 187 million times in the U.S. According to Sensor Tower, is frequently cited as one of the few credible competitors to Facebook. Facebook-owned Instagram is reportedly set to release its own copy of the app very soon.It’s unclear exactly what steps Trump plans to take separate the U.S. Version of the app from its Chinese owners. According to Gasparino, Trump could force a sale via the Committee on Foreign Investment in the United States (CFIUS). The Trump administration used a similar tactic last year when it forced the Chinese owner of Grindr to sell the dating app to a U.S buyer.In a statement, a spokesperson for TikTok said the company is “confident in the long-term success” of the app. "While we do not comment on rumors or speculation, we are confident in the long-term success of TikTok,” the spokesperson said. “Hundreds of millions of people come to TikTok for entertainment and connection, including our community of creators and artists who are building livelihoods from the platform. We’re motivated by their passion and creativity, and committed to protecting their privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform."Microsoft didn’t immediately respond to a request for comment.The news comes after weeks of speculation about TikTok’s future in the U.S. Secretary of State Mike Pompeo said earlier this month that the government was “looking at” banning the app, and Congress has recently moved to bar TikTok from federally-issued devices.TikTok has maintained that the app operates independently from its Chinese parent company, and that it wouldn’t cooperate with requests to hand over user data. The company recently appointed an American CEO, former Disney executive Kevin Mayer, and has taken several steps to increase transparency of its policies and product.

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It looks like Donald Trump is about to make good on his promise to go after TikTok. The Trump administration will soon force ByteDance, the Chinese company that owns TikTok, to sell the app to a U.S. Owner, Bloomberg reports.

And there’s already one tech giant reportedly eyeing the video app: Microsoft. Fox Business reporter Charles Gasparino reports the company “is in talks to buy,” TikTok. The app, which has been downloaded 187 million times in the U.S. According to Sensor Tower, is frequently cited as one of the few credible competitors to Facebook. Facebook-owned Instagram is reportedly set to release its own copy of the app very soon.

It’s unclear exactly what steps Trump plans to take separate the U.S. Version of the app from its Chinese owners. According to Gasparino, Trump could force a sale via the Committee on Foreign Investment in the United States (CFIUS). The Trump administration used a similar tactic last year when it forced the Chinese owner of Grindr to sell the dating app to a U.S buyer.

In a statement, a spokesperson for TikTok said the company is “confident in the long-term success” of the app. "While we do not comment on rumors or speculation, we are confident in the long-term success of TikTok,” the spokesperson said. “Hundreds of millions of people come to TikTok for entertainment and connection, including our community of creators and artists who are building livelihoods from the platform. We’re motivated by their passion and creativity, and committed to protecting their privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform."

Microsoft didn’t immediately respond to a request for comment.

The news comes after weeks of speculation about TikTok’s future in the U.S. Secretary of State Mike Pompeo said earlier this month that the government was “looking at” banning the app, and Congress has recently moved to bar TikTok from federally-issued devices.

TikTok has maintained that the app operates independently from its Chinese parent company, and that it wouldn’t cooperate with requests to hand over user data. The company recently appointed an American CEO, former Disney executive Kevin Mayer, and has taken several steps to increase transparency of its policies and product.

< < TikTok may drop its ties to China in very short order. Reuters sources claim TikTok’s Chinese owner, ByteDance, has agreed to sell its stake in the social network’s US operations to avert a possible ban. The agreement would have Microsoft protect American user data, according to the report, but Microsoft wouldn’t necessarily own TikTok itself — it would leave the possibility of another company taking stewardship.The company told Engadget that it didn’t comment on rumors, but that it was “confident in the long-term success of TikTok.” It pointed to a video response to talk of a ban where US General Manager Vanessa Pappas said TikTok was “not planning on going anywhere.” Microsoft declined to comment. The White house has already declined to comment on whether or not this move would prevent a ban.There’s no guarantee this would be enough. President Trump said on Air Force One that he would ban TikTok outright and rejected talk of allowing a sell-off. He suggested he would use an executive order or emergency economic powers to block the company. However, he also said this before word of a possible US deal emerged. If TikTok sheds its Chinese links, a ban might not have much effect.A ban could have serious consequences if it remained intact for a significant period, and not just to TikTok’s bottom line. The company has about 100 million American users, and a sudden shutdown could both make people scramble to alternatives and possibly create resentment. It could affect creator money and TikTok jobs, too. In that regard, the social media giant might not have much choice if it wants to prevent chaos.Update 8/1 5:08PM: The Wall Street Journal and The Information claim Microsoft has “paused” talks with TikTok following Trump’s suggestion he would ban the app. The tech companies were reportedly hoping to finish a deal by Monday, sources for the news outlets said. This doesn’t mean they’re scrapping the deal, but they apparently want “clarity” on what happens next.

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TikTok may drop its ties to China in very short order. Reuters sources claim TikTok’s Chinese owner, ByteDance, has agreed to sell its stake in the social network’s US operations to avert a possible ban. The agreement would have Microsoft protect American user data, according to the report, but Microsoft wouldn’t necessarily own TikTok itself — it would leave the possibility of another company taking stewardship.

The company told Engadget that it didn’t comment on rumors, but that it was “confident in the long-term success of TikTok.” It pointed to a video response to talk of a ban where US General Manager Vanessa Pappas said TikTok was “not planning on going anywhere.” Microsoft declined to comment. The White house has already declined to comment on whether or not this move would prevent a ban.

There’s no guarantee this would be enough. President Trump said on Air Force One that he would ban TikTok outright and rejected talk of allowing a sell-off. He suggested he would use an executive order or emergency economic powers to block the company. However, he also said this before word of a possible US deal emerged. If TikTok sheds its Chinese links, a ban might not have much effect.

A ban could have serious consequences if it remained intact for a significant period, and not just to TikTok’s bottom line. The company has about 100 million American users, and a sudden shutdown could both make people scramble to alternatives and possibly create resentment. It could affect creator money and TikTok jobs, too. In that regard, the social media giant might not have much choice if it wants to prevent chaos.

Update 8/1 5:08PM: The Wall Street Journal and The Information claim Microsoft has “paused” talks with TikTok following Trump’s suggestion he would ban the app. The tech companies were reportedly hoping to finish a deal by Monday, sources for the news outlets said. This doesn’t mean they’re scrapping the deal, but they apparently want “clarity” on what happens next.