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The US Department of Justice said it had appealed a Pennsylvania judge’s Oct. 30 order preventing the government from imposing restrictions on the short video-sharing app TikTok, owned by Chinese, which were to come into force on Thursday.
The Commerce Department’s August decision would have banned transactions with TikTok, which owner ByteDance warned would effectively ban the use of TikTok in the United States.
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The White House seemed in no rush to implement an August 14 divestiture order that ordered ByteDance to sell TikTok by Thursday.
The Trump administration did not make immediate efforts to enforce this order, although it was not clear whether the government would formally grant a ByteDance request to extend the sell-by date.
The Commerce Department said on Nov. 1 it would comply with Judge Wendy Beetlestone’s order blocking the ban, but said it would “vigorously defend” its actions.
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TikTok did not immediately comment on the government’s call for the U.S. Third Circuit.
Beetlestone urged the agency to ban US data hosting for TikTok, content delivery services and other technical transactions.
President Donald Trump’s administration argues that TikTok poses national security concerns because personal data collected from 100 million Americans who use the app could be obtained by the Chinese government. TikTok denies the allegations.
Beetlestone wrote that “the government’s own descriptions of the threat to national security posed by the TikTok app are hypothesized.”
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On September 27, U.S. District Judge Carl Nichols in Washington issued a preliminary injunction in a lawsuit by ByteDance that prevented Commerce from ordering Apple Inc and Alphabet Inc’s Google app stores to remove TikTok for download by new users. This order was to come into effect later today.
The U.S. Treasury Department said on Wednesday it wanted a resolution to the national security concerns it had raised about TikTok before Thursday’s divestment deadline. A spokeswoman for the Treasury made no comment on Thursday.
ByteDance is in talks for a deal with Walmart Inc and Oracle Corp to move TikTok’s US assets into a new entity called TikTok Global. He said on Tuesday he had requested a 30-day extension of the divestment deadline to finalize the terms. Trump said in September that the deal had its “blessing.”
ByteDance filed a petition on Tuesday with the United States Court of Appeals in Washington to challenge the August 14 divestiture order, which gave the Department of Justice the power to enforce the requested sale. On Thursday, a spokeswoman for the Department of Justice declined to comment.
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ByteDance said a fourth proposal submitted on Friday aimed to address US security concerns “by creating a new entity, 100% owned by Oracle, Walmart and existing US investors in ByteDance, which would be responsible for managing user data. American TikTok and Content Moderation.
(Report by David Shepardson edited by Chris Reese and Lincoln Feast.)
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