On September 18, the United States government had approved a new measure to ban the download of TikTok and WeChat. However, a day before the deadline, both prohibitions were temporarily lifted, albeit for different reasons.
In the case of TikTok, Oracle and Walmart, which, meanwhile, joined the technological giant after Microsoft’s departure from the “race”, announced in a statement who had closed an agreement to purchase the ByteDance app. Hours later, TikTok confirmed the decision no Twitter.
Even before the announcement by companies, Donald Trump had already given the business a “green light”. “The agreement has my blessing,” said the American president, speaking to reporters at the White House, adding that all national security requirements will be met.
Thus, Oracle, which now holds 12.5% of TikTok, will be responsible for managing the information of North American users, ensuring the security of computer systems. Walmart, which owns 7.5%, will be in charge of providing digital commerce platforms and commercial services.
The agreement provides for the creation of a new company, TikTok Global, which will launch a public offering of shares. Even before the Initial Public Offering, Oracle and Walmart will participate in a financing round where they will be able to buy up to 20% of the company.
However, there is always the possibility of setbacks in the process. In view of the latest developments, the United States Department of Commerce announced that the ban on downloading the application is postponed until September 27
In the “sights” of the Donald Trump administration since August 6, WeChat was also at risk of being banned in the United States. In addition, the rules regarding the popular Chinese application went further, preventing its use for making money transfers or payments. American companies also could not take any action that violated the new decision, nor use the app’s code in services or software.
However, the District Court for the Northern California district decided to apply a temporary suspension of the Executive’s decision on September 19. THE temporary injunction issued hair court is related with the WeChat Users Alliance lawsuit against the US government.
The group of activists argued that the executive order violates the right to freedom of expression established by the First Amendment to the United States Constitution and that it discriminates against Chinese people in the country that uses the application to communicate with family and friends in China. The complaint further stated that the decision violates the Fifth Amendment to the Constitution, since the order signed on August 6 does not clarify what are the interactions the order is intended to address.
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