US company TikTok’s postponement indefinitely

US company TikTok's postponement indefinitely

The US plan to forcibly sell the short video service TikTok to a group of companies, including Walmart and Oracle, has been postponed indefinitely. Those in the know say this because of President-Elect Biden’s review of measures taken by the Trump administration to address potential threats to China’s security.

Wsj.com

The sale of Tiktok’s business in the United States, which was last started by US President Donald Trump, was launched in the U.S. The lawsuit was dragged against the government by lawsuits filed by Ticketok’s boss, Bytdans.

According to sources, negotiations are going on between the ByteDance Board and representatives of the United States National Security Services. These discussions focus on data security and how to prevent the Chinese government from accessing the information that Tiktok collects about American users. However, they are not expected to be completed anytime soon.

US National Security Council spokeswoman Emily Hornay said her agency plans to develop comprehensive data security tools for US users that address the full range of threats facing the United States. In the coming months, the National Security Council will analyze specific cases to identify areas that need special attention.

Remember that last year, Trump decided to ban TickTalk in the United States, as long as the service was owned by a Chinese company. A few days later, the US Foreign Investment Committee formally ordered BiteDance to stop trading in the USA. In November, TikTok filed a petition with a federal appeals court in Washington to overturn the company’s decision to sell its American business. Service representatives said that they are ready to consider other ways of solving the problem. This case is still pending. In addition, the latest decree issued on December 7 stated that Trump’s decree is likely to go beyond his mandate.

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According to informed people, negotiations between Tiktok and the United States Foreign Investment Committee are still ongoing and consider the introduction of a trusted third party authorized to store and process the property, as one of the possible solutions to the problem goes. Direct selling of service is not required.

Wsj.com

According to reliable sources, any agreement between the parties is likely to be different from the previous demands made by Trump. Furthermore, TikTok’s sales are complicated by the need for approval by Chinese regulators. Last year, the Chinese government imposed new restrictions on the export of certain social media software algorithms that Ticketok also uses, making it more difficult to strike an agreement to sell the company’s US business.

The forecast is that on February 18, the United States government will give an official response to the Tiktok process, which will decide the fate of the service. Until then, the chief of ByteDance encourages the company’s employees to work normally. In addition, next week, the fate of the US ban on eight Chinese payment services, including Alipay and WeChat, will be known.

Biden’s measures regarding these services are likely to soften. Fortunately, the US National Security Advisor and White House policy coordinator in China criticized Trump’s criticism of Huawei over Chinese technology companies. Other US officials also support his statements.

Sarah Gracie

About the author: Sarah Gracie

Sarahis a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.

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