ByteDance Prepares US-Specific CapCut Amidst Divestment Pressures
ByteDance, owner of the immensely popular social media platform TikTok, is reportedly developing a U.S.-specific version of its highly successful video editing application, CapCut. This move comes as the company continues to navigate a complex regulatory landscape in the United States, driven by a federal divest-or-ban law passed last year.
CapCut US on the Horizon
According to documents viewed by Business Insider, the new American iteration of the app will be named “CapCut US.” This development mirrors the ongoing efforts by ByteDance to create a separate U.S. version of TikTok, as the deadline for a potential divestment or ban looms.
CapCut has solidified its position as a go-to tool for content creators and everyday users alike, boasting over a billion downloads on the Google Play Store and currently holding the top spot for photo and video apps in Apple’s U.S. app store. Its user-friendly interface, viral templates, and comprehensive editing features have made it indispensable for crafting short-form video content across platforms like TikTok, Instagram Reels, and YouTube Shorts.
Broader Implications for ByteDance’s US Presence
While the focus remains on TikTok and now CapCut, it remains uncertain whether ByteDance plans to create U.S.-specific versions of its other, less popular applications, such as the Instagram/Pinterest-style platform Lemon8 or the education app Gauth. These apps would also be subject to the same divestment requirements under U.S. law.
Trump Extensions and Deal Complexities
The road for ByteDance has been protracted, marked by a legal challenge to the 2024 law that was ultimately dismissed by the U.S. Supreme Court in January. Following his inauguration, President Donald Trump granted ByteDance a 90-day extension, which has since been extended twice more, to secure a deal for TikTok’s U.S. assets.
Despite reports of potential bidders, discussions surrounding a TikTok deal have faced headwinds due to President Trump’s recent tariffs on Chinese goods. Last month, Trump indicated on Fox News that a group of “very wealthy people” were interested in a deal, with ongoing discussions with China slated for this week. Any finalised agreement would necessitate approval from both the U.S. and Chinese authorities.
Unanswered Questions and Future Challenges
The future of TikTok and, by extension, CapCut in the U.S. remains laden with questions. Concerns persist about whether U.S. versions of these apps will maintain access to global content and templates, and if separate applications will adequately address the national security concerns that underpinned the divestment law. The crucial question of who will control TikTok’s highly coveted algorithms also lingers.
Furthermore, ByteDance faces the challenge of encouraging American users to transition to the new app versions. While plans to shutter the original TikTok app in the U.S. starting March of next year aim to facilitate this shift, competition for user attention is fierce. Attempts by companies like Meta to introduce CapCut-like alternatives, such as “Edits,” have yet to achieve similar widespread adoption.
