The United States district court (judge Carl Nichols) temporarily suspended the ban on TikTok, which was supposed to take effect on the order of US President Donald trump by granting a request from ByteDance.

 

In practice, this means that ByteDance (and, accordingly, TikTok) will have additional time to settle the process and get approval from both Chinese and American regulators to bring it into compliance with all the norms and requirements of both technical and legal nature on both sides of the unfinished transaction for the sale of the Oracle and Walmart service.

 

From the background:

On August 7, trump signed a decree requiring the sale of the service to US companies by mid-September 2020 (“On combating the TikTok threat”), after which the US Department of Commerce banned the distribution or support of American marketplaces TikTok or WeChat, and the court also prohibited downloading these applications in the US.

In addition, from November 12, it is planned to introduce additional restrictions on the use of services from ByteDance in the United States, which should make it impossible to use these applications in the legally defined space.

 

Given that it is unlikely that the government’s demands can be indefinitely restrained even through judge Nichols ‘ rather liberal approach, he asked both parties to specify the time frame, acceptable and reasonable, during which specific decisions on this transaction will be submitted.

 

The fact is that the key issue at this time is the owner of the controlling stake and the approval of the transaction by the Chinese government.

 

Regarding WeChat, we can say that the situation is also difficult, despite the lifting of the ban last week after suing the government (judge – Laurel Bieler)…

Leave a Reply

Your email address will not be published. Required fields are marked *

GPD Host Contacts
GPD Host Social
Pay with Confidence

Copyright © 2015 - 2020 GPD Host All right reserved.