Tik Tok went to court because it had not received a response for weeks about a deadline to sell its assets in the United States (Shutterstock)
ByteDance, the parent company of TikTok, has filed a petition in the U.S. Court of Appeals calling for a review of procedures by the Trump Administration’s Committee on Foreign Investment in the United States (CFIUS).
According to the company, the reason is that it has not heard from the committee in weeks about an imminent deadline for the parent company to sell US assets due to national security concerns.
Sources say the site “CNBC” (CNBC) The Tech Talk has not been a useful dialogue with the US administration of President Donald Trump on foreign investment in the United States for weeks.
Chinese company executives remain interested in completing a technology partnership with Oracle to address national security concerns, even if President-elect Joe Biden is not interested in the Trump administration’s TikTok ban.
The US Foreign Investment Commission has set a deadline of November 12 for TikTok to strip itself of “any tangible or intangible assets or property, wherever they are, that Chinese ByteDance uses to enable or support the operation of TikTok in the United States.”
Tik Tok says he has applied for a 30-day extension to the US Foreign Investment Management Committee but has not received any contact in this regard. It is not clear what will actually happen if the deadline passes.
Trump claimed that TikTok is a threat to national security because it collects US user data (Shutterstock)
“For a year, Tik Tok has actively cooperated with the Foreign Investment Management Committee in good faith to address its national security concerns, even as we disagree with its assessment,” Tik Tok said in a statement to The Verge.
“In the nearly two months since the president gave his initial approval to our proposal to address these concerns, we have provided detailed solutions to finalize this agreement, but we have not received any substantive comments about our comprehensive framework for data privacy and security,” the statement added.
Trump claimed that TikTok is a threat to national security because it collects US user data, which the Chinese government can access afterward, while TikTok denies this. The parent company still wants to move forward with a deal to remove the security issue as a burden.
ByteDance agreed to sell 20% of a new US-based company called TikTok Global to Walmart and Oracle of the Americas, interested in the platform as an e-commerce channel.
TikTok chose Oracle as a “trusted technology provider,” which means transferring some of TikTok’s functions to Oracle. Oracle will also verify the source code for TikTok in the US, but ByteDance will not transfer algorithms and technologies to Oracle.
This deal, which President Trump approved on September 19, has not received permission from the Chinese government. And there has been a disagreement over the exact terms, with Trump and Oracle claiming that ByteDance will not retain any ownership over the new TikTok Global and instead relinquish ownership of it to the venture capital owners in the US and other foreign backers. But ByteDance said it would still own 80%.
Trump then contracted the Coronavirus on October 2 and was sent to the hospital, and weeks of preparation for the elections followed, which led to the TikTok deal’s marginalization.