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ByteDance insists on retaining control of TikTok's US business

As soon as the US authorities approved the deal to change the structure of TikTok's assets and the model of work in this country, representatives of the Chinese ByteDance began to speak more and more boldly about the details of the deal. In their home country, they say they will retain control of TikTok in the US, and there is no direct commitment to pay $5 billion to the education fund.

Donald Trump initially said that he thought it fair to force ByteDance to pay a decent amount to the US budget after making a deal with US investors, but then cited comments from lawyers who said there was no legal way to convince a Chinese company to make such a payment. Barely approving the deal, the President of the United States announced that ByteDance had pledged to donate $5 billion to the country's education fund, although this came as a surprise to the Chinese side.

Representatives of ByteDance, as noted by Bloomberg, issued a statement regarding these words of Trump. They claim that they have no direct obligation to make cash payments in support of the US education system, and the mentioned $5 billion is the amount of taxes that TikTok Global will pay to the US budget over several years. The company intends to develop educational initiatives, but so far it all comes down to using ByteDance algorithms to develop educational video courses for local youth. In this direction, the company will be supported by Oracle and Walmart.

Separately, representatives of ByteDance explained that the company will retain control over the key algorithms of TikTok recommendations, and Oracle will be able to only partially control the program code, examining it for “bookmarks”. By holding 80% of the shares of TikTok Global, Chinese developers will be able to view the American company as a division of ByteDance directly involved in the management of its activities. At least, the Chinese company gives such comments to the domestic media, according to Reuters.

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