ByteDance’s TikTok Allowed to Continue Operation in US, Deals with Oracle and Walmart Unclear
The U.S. Department of Commerce announced to allow ByteDance’s TikTok to continue to operate in the U.S. on Nov. 12, the previously set deadline for the executive ban, putting a pause on the months of confrontation between the viral short video app and the Trump Administration on the issue of national security violation.
Earlier this week, ByteDance, the parent company of TikTok, filed a petition in a U.S. Court of Appeals calling for further clarification on the next step for its U.S. branch’s operation as the deadline of Nov. 12 was arriving, which was set by the Committee on Foreign Investment in the United States (CFIUS.)
The order issued by the Department of Commerce didn’t directly respond to the block by the CFIUS, but the paperwork published the results of the preliminary injunction thus reaffirming the operation of the platform’s U.S. business. Three content creators on TikTok, who are also referred to as TikTokers, filed a lawsuit in Pennsylvania against the prohibition of the mobile app in the country on Sept. 18, saying that the ban would confine their “professional opportunities afforded by TikTok.”
Additionally, given the history that the ByteDance affiliate had landed on a primary deal with Oracle and Walmart on Sep. 21, it currently remains unclear where the agreement will lead to, which was set to sell 20% of its stakes to two buyers.
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Back in September when the rudimentary deal was landed, U.S. President Donald Trump publicly expressed his blessings to the agreement between the two American companies and the Chinese video-sharing app. California-based computer software maker Oracle was seeking to become TikTok’s cloud provider with a 12.5% stake while retail giant Walmart claimed to purchase a tentative 7.5% stake, rescuing the popular app from shutting down in the country. Now that the Commerce Department approved TikTok’s U.S. operation, as long as the decision isn’t overturned, the company will continue to wait for further instructions on the minority stake sales.