ByteDance's TikTok Challenges Trump's Order To Divest

bytedancestiktok nov11

Chinese short-video app TikTok, which is facing a Thursday deadline to restructure ownership of its app in the U.S., has filed a last-minute petition in a U.S. court asking for more time.

The U.S. government had sought to ban the Chinese app in the U.S., citing it as a national security threat.

In August, the Trump administration's Committee on Foreign Investment in the United States or CFIUS set a November 12 deadline for TikTok's parent company ByteDance to divest all its assets that are required to support the app's operations in the U.S.

ByteDance also faced an order that would effectively ban the app from the U.S. by the same date. But a Pennsylvania judge issued an injunction in late October, temporarily blocking the order to ban the app.

The CFIUS order did not specify the future course of action if ByteDance did not divest the assets by the November 12 deadline.

In its petition filed in the U.S. Court of Appeals for the DC Circuit, TikTok called for a review of actions by the CFIUS, saying it has not received enough feedback on its proposed solution.

TikTok said it had asked the U.S. government for a 30-day extension of the deadline, but did not receive clarity on whether its proposed solution would be accepted.

"Today, with the November 12 CFIUS deadline imminent and without an extension in hand, we have no choice but to file a petition in court to defend our rights and those of our more than 1,500 employees in the US," TikTok said in a statement.

In September, Oracle and Walmart said they tentatively agreed to acquire 20 percent of in a newly formed U.S.-based company called TikTok Global. Walmart agreed to purchase 7.5 percent of TikTok Global.

Oracle said it would become TikTok's secure cloud provider and quickly establish data privacy for the 100 million American TikTok users by moving all American data to Oracle's Generation 2 Cloud data centers.

TikTok Global would be majority owned by American investors, including Oracle and Walmart, the two companies said. However, ByteDance said it would own the remaining 80 percent stake in TikTok Global.

But the deal got sidelined after Trump tested positive for coronavirus in early October. Also, this was followed by preparations for the U.S. presidential election.

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