TikTok is not yet disappearing from the American app stores. The download ban was postponed by the judge at the very last moment on Sunday evening. How is the music video app doing now?
“We are pleased that the court has agreed with us and issued an injunction to prevent the ban on TikTok,” TikTok wrote in response to the verdict. But the download ban, which would simply remove the app from the app stores, is only one side of the story.
TikTok did not succeed in getting the general ban, which must take effect on November 12, off the table. From that moment on, TikTok cannot be used in the United States at all, even if you have already downloaded the app.
For the company, the current situation is a race against time. The app may only remain if the US operations are also domestically owned.
How did it come to be banned?
The US government has been thinking aloud about banning the popular video app since July. According to Mike Pompeo, the secretary of state, China’s ByteDance would steal private information from Americans through the app.
A month later, President Donald Trump announced that TikTok would actually be banned. ByteDance was given 45 days to find an American buyer.
That ultimatum did not last long. Just a week later, on August 14, that search period was doubled by decree to ninety days; TikTok will be banned from November 12.
Microsoft was the first to sign up for the acquisition. The tech company zag the company’s North American and Oceanic operations are in place.
Microsoft wanted to guarantee the security of personal data in the United States. The giant was, according to sources The New York Times has been negotiating a minority deal with the company for some time and was therefore at the forefront.
Difficult to cut loose
It would be difficult for Microsoft to cut off part of the company. For example, the app’s valuable algorithms, which determine what a user sees, have been trained on user data from China. That too must be disconnected.
Rumors slowly trickled in that China wouldn’t be satisfied with such a deal – it wouldn’t want that Chinese companies are bowing down to the United States. Abruptly withdrew TikTok the plug from the deal in mid-September.
Oracle and Walmart were ready
Cloud service provider Oracle turned out to be the hijacker on the coast. The company announced just days later that it would take control of US TikTok users’ data. Under the deal, Oracle will get a stake in TikTok, but the Chinese tech giant’s valuable algorithms will remain with the parent company.
The American retail chain Walmart also joined the deal. They want to take on the commercial side in the US. In total, Walmart and Oracle will likely own about 20 percent of the shares of the new TikTok Global.
Why Walmart? Because the Chinese version of the app, Douyin, combines the social part with a shopping platform, analysts suspect CNN. Walmart would be after a similar construction in the US.
TikTok is taking legal action
TikTok took the US government to court in late August. The company had “no choice” but to take legal action, it wrote on Aug. 24. The US government would have acted unfairly and violated the rules of economic sanctions.
The United States would have “no evidence” that TikTok is actually spying for the government. The steps TikTok has taken to address concerns have been routinely ignored by the government.
TikTok has now twice asked the judge in emergency hearings to postpone the app’s ban. With success: both the download ban and the general ban now only start after the US elections.