TikTok has denied all these accusations of it being controlled or sharing data with the Chinese government
The app has reportedly 80 million active monthly users in America and that the ban will be a major setback to ByteDance’s operations in the American market
In what looks to be another blow to short video sharing platform TikTok, US President Donald Trump has signed an executive order effectively banning the app in the US. This development comes soon after Trump stated that he was going to sign an executive order as early as Saturday.
The ban will come into effect in 45 days, quotes a PTI report. The report stated, “In a communique to the Congress, Trump said the spread in the United States of mobile applications developed and owned by the companies in China continues to threaten the national security, foreign policy, and economy of the country.”
Several US security officials have raised questions and concerns about app security. Owned by ByteDance, officials have warned that the app could be collecting personal data of American citizens.
TikTok has denied all these accusations of it being controlled or sharing data with the Chinese government. The app has reportedly 80 million active monthly users in America and that the ban will be a major setback to ByteDance’s operations in the American market.
Trump was quoted in the PTI report stating, “To deal with this threat, the order prohibits, beginning 45 days after the date of this order, to the extent permitted under applicable law, any transaction by any person, or with respect to any property, subject to the jurisdiction of the United States, with ByteDance Ltd. (a.k.a. Zijie Tiaodong), Beijing, China, or its subsidiaries, in which any such company has any interest, as identified by the Secretary of Commerce (Secretary),” Trump said.”
Currently, it is not clear about the legal repercussions of the executive order considering Microsoft has been in talks to buy the app from ByteDance. In the latest development, Microsoft has reportedly pushed a deal where it will buy TikTok’s global business which includes the apps business presence in the Indian and European market, according to a report from the Financial Times. The report also quoted one investor putting the value of TikTok’s India business at $10 billion which is around Rs 7,496 crore.
Here are five major points to know right now
(1)TikTok was first banned in the first banwave initiated by the Indian government. The app was among the 59 Chinese apps which were banned from the Indian market citing threats to national security and sovereignty. The app ban was soon followed by another ban of 47 clone or lite version apps.
(2)Microsoft had expressed its desire to purchase the app and the plan included buying out TikTok’s global businesses. An important point to note, TikTok’s biggest market was India – 650 million downloads according to a report by Sensor Tower.
(3)President Trump had later said that TikTok will be banned in the US unless it was sold to an American company by September 15 with the adjoining warning that the app poses a threat to national security because it is linked with China.
(4)It is currently unclear as to how the ban will be implemented and what will happen to the potential Microsoft-Tiktok deal.
(5)A BBC report quoted a TikTok exec stating that the company (TikTok) was “confident in the long-term success of TikTok” in the US.