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Tiktok given a 15-day ultimatum to settle national security woes in the US

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Tiktok to resolve national security concerns by November 27
Tiktok to resolve national security concerns by November 27, Photo by Hello I'm Nik on Unsplash

TikTok, the video-sharing app, faces vehement boycotts worldwide after cybersecurity experts called it a danger to national security. The allegation raised by the US administration is that the personal data of the US users is obtained by China government through TikTok.

On August 14, 2020, Donald Trump’s order that directed Byte Dance to divest from the TitkTok’s app within 90 days has now seen a breather.

Insights into the new developments on the way

Currently, TikTok has more than 100 million US users on its platform. In September 2020, the US Commerce Department notified internet companies that TikTok would be banned from the US through an official order by mid-November. Following this, TikTok had filed a petition with the US Court of Appeals for Trump’s divestiture order.

The old deadline of November 12, 2020, is now given a new sphere as the judges of Washington and Pennysylvania blocked the old prohibitions under the request of TikTok officials. A recent ruling on November 10, 2020, has granted two more weeks to Tiktok to strike a deal with the US administration.

The Committee on Foreign Investment in the US(CFIUS) said in a statement: “This time provide parties and the committee additional time to resolve this case in a case in a manner that complies with the Order.”

Hence, till November 27, Tiktok’s owner ByteDance needs to sell and divest from the social media company under the executive order.

Unleashing the new deal

The deal’s insights include a consensus between Oracle and Walmart so that TikTok continues to be a top lip-sync video-sharing app in the future as well.

A new entity will be built—headquartered in the US, with the US investors owning most of the stake in TikTok. This new entity will be wholly owned by Walmart and Oracle and will also handle user data, and content moderation of ByteDance owned TikTok.

The Walmart-Oracle deal has been regarded as a blessing by the TikTok officials.

While this deal is on its finalization stage, the near rivals of TitTok have made gains from the disruption of its operations.

After the temporary ban on TikTok, Youtube has capitalized on TitTok’s market loss with a new feature called ‘Shorts.’ Furthermore, YouTube is thinking about monetizing the feature by creating a “Shorts Traffic” section under the homepage of the YouTuber. However, experts say that TikTok is an entirely different platform that requires a different workflow and content.

With the new developments on the way, ByteDance seeks to take forward the wholesale divestment of its multibillion-dollar TikTok business in the US and save the business’s permanent closure.

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