Tech

ByteDance cancels the sale of the American branch of TikTok

The South China Morning Post newspaper reports this on the basis of an insider source. Trump had ordered a presidential decree that TikTok be banned in the US as long as the app is in Chinese hands, but Joe Biden’s new administration put a stop to that this week.

While several lawsuits were being filed to stop the forced sale, ByteDance had already signed a draft agreement with US software company Oracle and retail chain Walmart. But, a source told the South China Morning Post, the deal was primarily intended to accommodate the Trump administration in its demands. “Trump has now left, and with him the rationale of the deal,” said the initiate.

Postponed

The forced sale of TikTok does not have to continue for the time being, was reported by The Wall Street Journal last week. The White House announced that it is further investigating the alleged security risks of the app. The Biden government has suspended a lawsuit over an impending ban on the app until further notice.

The forced sale of the app had already been postponed due to a series of legal victories by TikTok mother ByteDance.

Saving data in US

ByteDance is currently considering a new structure for its US operations, the source of the South China Morning Post said.

Under Trump, the United States is betting big on companies that pose a security risk, for example because they have too close ties with the Chinese government or that country’s military. With regard to ByteDance, TikTok’s parent company, the main objection was that the data of all users was stored in China.

ByteDance said it was willing to store that data in the US, but that was insufficient for the Trump administration.

Follow Bright on TikTok

Tags

Related Articles

Back to top button
Close
Close