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Home / Tips and Tricks / The US ban on TikTok is suspended. What’s next?

The US ban on TikTok is suspended. What’s next?



The court ruling is temporary and can be challenged by the US government. The verdict could ultimately be rejected: The judge only weighed because TikTok challenged the ban and the company could lose its court case.

To make matters even more confusing, TikTok’s lawsuit isn’t the only thing shaping the future of the app.

The Chinese owner of TikTok, ByteDance, wants to sign a contract with the American companies oracle (ORCL) and Walmart (WMT) That could be enough to satisfy the Trump administration’s concerns about the app and stave off U.S. pressure once and for all.

What did it all start?

US President Donald Trump and his administration have been attacking TikTok for months over its ties to China. They claim the app poses a national security risk as the user data it stores about Americans could end up in the hands of the Chinese government.
These attacks came to a head in August when Trump issued executive orders that would effectively ban TikTok in the United States. He later said the ban could be avoided if a “very American company”
; bought it.

TikTok has since opposed claims that it poses a security risk, stating that the user data it stores about Americans is stored in the US, with a backup in Singapore. His opposition to the ban spurred TikTok to sue the Trump administration in federal court.

What happened to the ban?

A ban on downloading TikTok from US app stores was originally due to come into effect on September 20, according to the US Department of Commerce.

That date was moved a week to September 27 after Trump gave his preliminary blessing to the deal with Oracle and Walmart. Then that deadline was postponed indefinitely after Federal Judge Carl Nichols temporarily blocked the ban in response to TikTok’s legal challenge.

What’s next?

The US Department of Commerce has announced that it will “vigorously defend” its order and there have been no significant developments in the trial since the judge issued his verdict last week.

Trump steals China's game book to deal with TikTok

The app store ban isn’t the only TikTok deadline on the U.S. government’s radar, however.

Confusingly, one of Trump’s executive orders gave TikTok a much longer deadline, Nov. 12, to find a U.S. buyer. After that date, the Department of Commerce announced that Internet backbone companies would no longer be allowed to broadcast the app’s traffic, effectively shutting down TikTok’s U.S. operations.

TikTok could also try to postpone this deadline. The company has until October 14 to file a request to temporarily suspend these restrictions.

What is happening to this deal?

The agreement with Oracle and Walmart is still in the works. The two companies would own at least part of a new company called TikTok Global, which would be headquartered in the United States.

However, some key elements of the proposal remain unclear.

Trump has said he won’t approve the deal if the Americans don’t control the company. This request has created confusion as an initial announcement of the collaboration with Oracle and Walmart implied that ByteDance would continue to own a majority of Tiktok in the future. (In the following days, a person familiar with the business told CNN Business that TikTok Global would be partially owned by ByteDance’s international and Chinese investors, but that ByteDance itself would hold zero percent of the company that the deal made to carry out the Business to be created app outside of China.)

What about china?

ByteDance applied for a license from the Chinese government last month to export its technology, indicating the company will need approval from China before the deal can proceed.

However, China’s role in signing the agreement is murky. In August, Chinese regulators introduced new rules for selling certain technologies to foreign buyers. Experts indicated that the change would likely require ByteDance to get government approval before TikTok is sold to a foreign company.

However, according to ByteDance, the US deal doesn’t include the transfer of its algorithms and technologies – just that Oracle could review the app’s source code.

The deal was also aggressively pushed back by Chinese state media, which last month encouraged Beijing to end the deal.

What about WeChat?

There is another Chinese owned app that is also under pressure in the US.

One of Trump’s orders in August called for a ban on transactions with WeChat, not just TikTok. The app, owned by Tencent, is ubiquitous in China and is widely considered to be of equal value if Facebook, PayPal, LinkedIn, and other platforms were combined into one. It’s also a popular way for people to keep in touch with friends, family, and business contacts in China.

Federal Judge Laurel Beeler temporarily blocked the WeChat ban on September 20 after it was challenged in court by a group of US WeChat users. The judge said these users asked “serious questions” in their allegation that the executive order compromised users’ initial customization rights.

Last Friday, the US Department of Justice said it would appeal the decision, which could lead to litigation over the future of the app.

In addition to the appeal, Beeler is expected to reconsider her temporary suspension of the ban on October 15.


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