TikTok Acquisition: Not A Cake Walk for Microsoft

After President Trump announced an order banning US companies’ transactions with Chinese businesses, which is set to come into effect 45 days from the day it was passed, it became evident that the coming few weeks were going to be painfully hectic for all tech companies dealings with China.

With the recent spotlight, TikTok has been in, after multiple threats of a possible US ban materializing into something concrete with this order, certain challenges have come up, particularly for Microsoft, who is now confirmed to be considering buying TikTok’s global operations.

Some of these challenges are general tech-related obstacles, but they are deeply tied into the 45-day limit Trump’s order has imposed on companies, giving everyone time until September 15th to sort out their affairs.

TikTok Acquisition: A Tough Road Ahead

In Microsoft’s case in particular, if the deal doesn’t come through in the stipulated time period, TikTok could quite possibly be banned in the US once and for all, along with many other Chinese origin apps that are bound to bear the brunt of this new order.

Other significant challenges, along with being time-bound compulsions, are also massive tech-related hurdles.

First and foremost, people have become extremely wary about the kind of personal data TikTok collects and how it is used. At the same time, personalized data collection is the backbone of TikTok’s near-perfect recommendation algorithm, which gives users highly customized recommendations. If Microsoft does acquire the company, making changes in the data collection process will be bound to happen. The company, thus, would be faced with the dilemma of which data to collect or eliminate to retain this feature.

Another challenge that is related to the first one is ad personalization. Although a somewhat uncharted territory for Microsoft, it has been one the company has been trying to break into, along with its attempts at establishing a presence in social media tech. With this challenge, once again, Microsoft will be faced with the dilemma of the kind of user data to collect. But in addition to this concern, it will also have to come up with a secure system to share this data with advertisement partners, to instill a sense of trust among users.

Additionally, for a period after the acquisition, Microsoft will have to use ByteDance’s source code for TikTok. The core features of the app operate on this source code, which it shares with TikTok’s Chinese counterpart, Douyin. To prevent taking the app off the market completely for a while, Microsoft will have to adjust the programming while the app will still be in use. This would also mean that the company won’t be able to instantly migrate all the relevant components of the app to their own database, i.e. one outside China.

Read More, https://dazeinfo.com/2020/08/11/tiktok-acquisition-not-a-cake-walk-for-microsoft/

Leave a Reply

Your email address will not be published.