The Trump administration given ByteDance a 15-day expansion of a divestiture order that had led the Chinese company to sell its TikTok brief Coding app by Thursday.
TikTok first revealed the expansion sooner in a court filing, saying it now has until November the 27th to achieve an arrangement. Under pressure from the US government, ByteDance has been in talks for a deal with Walmart Inc and Oracle Corp to change TikTok’s US assets into a new thing.
The Treasury Department said on Friday the Committee on Foreign Investment in the United States (CFIUS) given the 15-day expansion to “provide the parties and the committee additional time to resolve this case in a manner that complies with the Order.”
ByteDance filed a petition on Tuesday with all the U.S. Court of Appeals for the District of Columbia challenging the Trump government divestiture order.
ByteDance said on Tuesday CFIUS attempts “to compel the wholesale divestment of TikTok, a multibillion-dollar business built on technology developed by” ByteDance and based on the government’s review of the Chinese company’s 2017 acquisition of Musical.ly.
President Donald Trump in an Aug. 14 order had directed ByteDance to divest the app inside 90 days.
The Trump administration claims TikTok poses national security issues, stating the personal data of U.S. users might be obtained from China’s government.
One big issue that has persisted is over the ownership structure of this new company, TikTok Global, which will own TikTok’s US assets.
In Tuesday’s court filing, ByteDance stated it submitted a fourth suggestion last Friday that contemplated addressing US worries “by creating a new entity, wholly owned by Oracle, Walmart and existing US investors in ByteDance, that would be responsible for handling TikTok’s US user data and content moderation.”
Independent restrictions on TikTok from the US Commerce Department have been obstructed by national courts, including trade curbs scheduled to take effect on Thursday which TikTok cautioned could effectively ban the app’s usage in the United States.
A Commerce Department ban on Apple and Google offering TikTok for download for new US users who had been set to take effect on September the 27th continues to be blocked.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by David Shepardson. Editing by Jonathan Oatis, Dan Grebler, Louise Heavens and Richard Chang.
Stay on top of the latest developments across the platform economy and gain access to our problem-solving tools, proprietary databases and content sets by becoming a premium member. Subscription plans start at under $7 per month.