TikTok to Launch U.S.-Only App with Overhauled Algorithm, Pioneering Regionalized Operations Era

TradingKey - According to informed sources, TikTok is developing an independent application specifically for the U.S. market. This new app will feature a separate recommendation algorithm, enhancing user engagement and tagging systems (similar to Instagram's static recommendation mechanism) to meet U.S. regulatory requirements for algorithm transparency.

The U.S. government has pressured TikTok with a "sell or be banned" ultimatum regarding its operations in the country, and the launch of this new app is seen as a preliminary step towards "selling its U.S. business." 

The new app is scheduled to launch in U.S. app stores on September 5, while the existing TikTok app will remain available until March 2026. However, sources emphasize that while development progress for the new app is on track, any final sale proposal will still require negotiations between regulatory bodies in both countries, with potential adjustments to the timeline not ruled out.

The new application will implement stricter localized content review mechanisms, which may reduce the proportion of globalized content recommendations. This could create a "three-way competition" scenario alongside Douyin (the Chinese version of TikTok) and TikTok Global, reflecting a strategic shift towards regional operations for TikTok.