Reuters reported that the Trump administration has yet once again extended the deadline for ByteDance to sell its video-sharing platform TikTok’s business in the US. As per the report, the Committee on Foreign Investment in the United States (CFIUS) has extended the deadline of China-based ByteDance up to 4th December.
According to a court filing, ByteDance has two options: either to sell or to spin out its US business. CNBC reported that CFIUS granted the extension “to allow time to review a revised submission”.
Back in August this year, President Trump said that TikTok and its parent company were a national security risk to the US and issued the initial order which required TikTok to sell its US business. Trump’s initial order would have blocked all US transactions with ByteDance.
In September, the US Commerce Department issued an order to block downloads of TikTok in the US. At that time, Trump approved an “in concept” deal with Oracle and Walmart. As per the deal, a new US-based entity dubbed TikTok Global should be created.
As of now, the so-called deal did not receive final approval. Earlier this month, TikTok said it had received “no substantive feedback” from the Trump administration for quite a while. On 13th November, the US government issued a notice that extended the deal deadline to 27th November.
The government is bound by an injunction issued on 30th October by a federal court in Pennsylvania. As a reiteration, the Commerce Department issued an unpublished rule saying the agency is complying with the terms of the judge’s ruling. The issued statement reads that its prohibition of TikTok transactions “has been enjoined and will not go into effect, pending further legal developments.”
As of now, TikTok did not immediately make any comment regarding this. It will be interesting to see how long and how far this legal battle goes.