As all the parties have agreed to the proposed Oracle lead takeover of TikTok, which seems to fulfill all the requirements of both US and Chinese Government for the deal to take action, the actual details are still in work, with some disagreement over what actually will be taken into consideration in the sell-off of the app. Which therefore leads to potentially the next problem for the app.
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TikTok originally had until 20th September to officially make a separation deal or the app will face a ban from the US app store. That came out to nearly happen until the Oracle deal was on the verge of approval and therefore the US Department of Commerce gave TikTok extra 7 days to make the final arrangement. Which states that the deadline of the app is on this Sunday and if the deal is not signed then the app will be removed from the US app stores, which means existing users will still be able to use the app but no one else would be able to download it until the deal gets final approval.
TikTok therefore seemingly still increasing new users at a huge rate so the company has requested an injunction against the pending app store ban, stating not enough evidence and just cause in the White House executive order. This might well get it as US Magistrate last week ruled out the same ban on WeChat, under the White House Executive Order that didn’t go ahead because of lack of evidence in regard to the issue that the app is a threat to the national security.
“While the general evidence about the threat to national security related to China (regarding technology and mobile technology) is considerable, the specific evidence about WeChat is modest”.
TikTok might argue for the same, TikTok, therefore, has already mentioned in the proposed US Government ban in a post that says “Why we are suing the Administration“.
“The Executive Order issued by the Administration on August 6th, 2020 has the potential to strip the rights of [our] community without any evidence to justify such an extreme action, and without any due process. We strongly disagree with the Administration’s position that TikTok is a national security threat and we have articulated these objections previously.”
ByteDance a Chinese company is obligated to China’s strict cybersecurity laws that need businesses to share their user data on request that would have to share such if requested by the CCP. As the concerns seem to be valid it could mean that might be able to stop any app store ban, even if the takeover deal is not made, which therefore would certainly not look good for the US administration and its intention to ban the app. To sum up, TikTok takeover talks are not over yet and as it possibly seems that the parties will come to a agreement to let TikTok operate in the US, and the app could still be removed from app stores in few more days.