Sep 21, 2020 App News
Earlier in August 2020, President Trump issued an executive order that gave American individuals and companies 45 days to halt transactions with the popular messaging, social media and mobile payment app called WeChat and with TikTok. This was met with rage by the USA based users of the app who users registered a complaint against the trump administration, challenging the ban of the app.
For now, both the apps have managed to avoid the ban as it was supposed to go into effect on 20th September 2020 but are still present in Google Play Store and Apple’s App Store.
It seems the apps are here to stay because Trump came out in support of a deal that would allow TikTok to keep operating in the US. Trump was presented with a deal between TikTok, Oracle, and Walmart who have joined forces to keep TikTok regulated and “American” enough to let the app stay in the US at least temporarily and prompting a one-week delay from the Commerce Department on TikTok’s ban.
Now we see a new company, which is a joint venture between the Chinese company and a few American companies, set up known as TikTok Global which will have its headquarters in the US and the majority in the leadership boards will be American. It is also reported that Walmart and Oracle will take a 20% cumulative stake(12.5% for Oracle and 7.5% for Walmart) for about $12 billion. ByteDance is said to own 80 percent of TikTok Global and will have an IPO to open it up to US investors. As the initial issue of both apps was that of user security, the TikTok US user data will be moved to Oracle’s cloud servers. In addition, a judge in California issued a preliminary injunction blocking the administration’s WeChat ban, agreeing with plaintiffs who claimed that the prohibition order would affect their First Amendment rights.
Regardless, for now, both apps may to be here to stay for a while till the companies sort things out by 27th September which is till when the delay will last.