Key Takeaways
1. TikTok is developing a US-specific version of its app, called “M2,” in response to US legislation regarding foreign-controlled applications.
2. American users will need to download this new version to continue using TikTok, with a transition period lasting until March 2026.
3. The new app aims to comply with US legal standards while allowing ByteDance to retain control in other areas, particularly regarding algorithms.
4. A law requires TikTok to divest its US operations by January 19, 2025, or face a ban, with previous delays from President Trump.
5. The new app could facilitate a sale of TikTok’s American business without transferring the algorithm, potentially satisfying US regulations and keeping the platform operational.
According to a fresh report from The Information, TikTok is working on a version of its app specifically for the US as it approaches a potential agreement with an American partner.
Response to Legislation
This move comes as a direct reaction to the “Protecting Americans from Foreign Adversary Controlled Applications Act.” Internally, this initiative is referred to as “M2” and is expected to launch in early September. Once it becomes available, American users will need to download this new version of the app to keep using TikTok, with a transition phase lasting until March 2026.
Details of the New App
The exact ways that this US-only version will be different are still unclear, but it’s assumed that TikTok’s parent company, ByteDance, is trying to keep full control in other areas while complying with US legal standards. These standards involve restrictions on foreign ownership and governance of the platform’s algorithms.
News about this new application comes after President Trump announced he has a buyer ready for TikTok, described as a group of “very wealthy people.” The suggested deal would allow a collection of non-Chinese investors, including Oracle, to take a majority share in TikTok’s American business, with ByteDance keeping a minority share.
Legislative Timeline
A law signed by President Biden mandates the platform to divest by January 19, 2025, or face a ban in the US. President Trump has delayed this required sale three times. Any agreement still requires approval from the Chinese authorities, who have firmly stated that TikTok’s algorithm cannot be sold along with the app.
This new app might be a solution that enables a sale without granting full access to the algorithm, which could satisfy US regulations while detaching the American operations from the main app.
Future Outlook
While there are not enough details to predict exactly how everything will play out, there are several indicators that suggest a resolution is on the horizon that allows TikTok to remain available in the US.
With President Trump indicating that a buying group is nearly approved and TikTok preparing a distinct US access point, which is set to launch around the same time the current executive order extension expires, it seems a deal is becoming more likely.
If the new version can maintain the engaging aspects of the current algorithm, it could lead to a favorable outcome for everyone involved.
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