A day extension to the Chinese company ByteDance has been granted by the Trump administration for a divestiture order issued to the company by it for selling off the company’s short video sharing app TokTok by Thursday this week.
The extension was first disclosed earlier in a court filing by TikTok as it said that it had been given till November 27 to come to an agreement about the possible sale of TikTok’s United States business. ByteDance has been forced by the US government to start and continue negotiations for a deal with American companies Walmart Inc and Oracle Corp for shifting the assets of TikToK in the US into a new company called TikTok Global.
The 15-day extension to ByteDance was granted by the Committee on Foreign Investment in the United States (CFIUS) to "provide the parties and the committee additional time to resolve this case in a manner that complies with the Order," said the US Treasury Department on Friday.
Challenging the Trump administration divestiture order, a petition at the US Court of Appeals for the District of Columbia was filed on Tuesday by ByteDance.
CFIUS seeks "to compel the wholesale divestment of TikTok, a multibillion-dollar business built on technology developed by" ByteDance and on the basis of the government's review of the Chinese company's 2017 acquisition of Musical.ly, the Chinese company said on Tuesday.
An order for divesting the app within 90 days was issued to ByteDance by the US President Donald Trump on August 14.
According to the Trump administration, the activities of TikTok is a potential threat to the country’s national security because the app and its Chinese owner could transfer to the Chinese government personal data of millions of American users of the app that lies with the app.
TikTok and ByteDance has refuted the allegations.
The Walmart-Oracle deal had his "blessing", Trump has said previously.
The central questions that has prevented a deal so far has been over the ownership structure of the new company, TikTok Global, which would own the assets of the US business of TikTok.
A fourth proposal had been submitted by it last Friday which it believed would be able to address the concenrs o fthe US government "by creating a new entity, wholly owned by Oracle, Walmart and existing U.S. investors in ByteDance, that would be responsible for handling TikTok's U.S. user data and content moderation," ByteDance has said in Tuesday's court filing.
Federal courts have, in a separate case, blocked the separate restrictions on TikTok that had been issued by the US Commerce Department whiuch included curbs on transactions of American companies with the app and was scheduled to come into effect on Thursday. RikRok had contended that the order could effectively ban the use of the app in the US.
US courts have also blocked another order issued by the US Commerce Department under which Apple Inc and Alphabet Inc's Google were barred from having TikTok app in their app stores which would effectively prevent American US users from downloading the app. That order was set to take effect from September 27.
(Source:www.firstpost.com)
The extension was first disclosed earlier in a court filing by TikTok as it said that it had been given till November 27 to come to an agreement about the possible sale of TikTok’s United States business. ByteDance has been forced by the US government to start and continue negotiations for a deal with American companies Walmart Inc and Oracle Corp for shifting the assets of TikToK in the US into a new company called TikTok Global.
The 15-day extension to ByteDance was granted by the Committee on Foreign Investment in the United States (CFIUS) to "provide the parties and the committee additional time to resolve this case in a manner that complies with the Order," said the US Treasury Department on Friday.
Challenging the Trump administration divestiture order, a petition at the US Court of Appeals for the District of Columbia was filed on Tuesday by ByteDance.
CFIUS seeks "to compel the wholesale divestment of TikTok, a multibillion-dollar business built on technology developed by" ByteDance and on the basis of the government's review of the Chinese company's 2017 acquisition of Musical.ly, the Chinese company said on Tuesday.
An order for divesting the app within 90 days was issued to ByteDance by the US President Donald Trump on August 14.
According to the Trump administration, the activities of TikTok is a potential threat to the country’s national security because the app and its Chinese owner could transfer to the Chinese government personal data of millions of American users of the app that lies with the app.
TikTok and ByteDance has refuted the allegations.
The Walmart-Oracle deal had his "blessing", Trump has said previously.
The central questions that has prevented a deal so far has been over the ownership structure of the new company, TikTok Global, which would own the assets of the US business of TikTok.
A fourth proposal had been submitted by it last Friday which it believed would be able to address the concenrs o fthe US government "by creating a new entity, wholly owned by Oracle, Walmart and existing U.S. investors in ByteDance, that would be responsible for handling TikTok's U.S. user data and content moderation," ByteDance has said in Tuesday's court filing.
Federal courts have, in a separate case, blocked the separate restrictions on TikTok that had been issued by the US Commerce Department whiuch included curbs on transactions of American companies with the app and was scheduled to come into effect on Thursday. RikRok had contended that the order could effectively ban the use of the app in the US.
US courts have also blocked another order issued by the US Commerce Department under which Apple Inc and Alphabet Inc's Google were barred from having TikTok app in their app stores which would effectively prevent American US users from downloading the app. That order was set to take effect from September 27.
(Source:www.firstpost.com)
