Latest news with #ProtectingAmericansfromForeignAdversaryControlledApplicationsAct
Arabian Post
07-07-2025
- Business
- Arabian Post
TikTok Unveils Stand‑alone U.S. App to Secure Sale
TikTok is preparing a standalone version of its app for U. S. users, slated for launch on 5 September 2025, as part of its strategy to comply with the U. S. law mandating a sale or ban of its American operations. The current app will remain functional until March 2026, although officials say this date is subject to change. Under the Protecting Americans from Foreign Adversary Controlled Applications Act, ByteDance must divest TikTok's U. S. unit by 17 September 2025 or face prohibition. The creation of the so-called 'M2' app would separate code and infrastructure from its Chinese parent, aiming to address national‑security concerns raised in Washington. Donald Trump indicated 'the United States pretty much has a deal' and that talks with Beijing would commence early this week, involving President Xi or his envoys. The sale is expected to transfer U. S. operations to a consortium of American investors—potentially including Oracle—while ByteDance retains a minority stake. Yet technical-and-political tension between the partnering governments looms; China has resisted ceding control over the algorithm, deemed strategic technology. ADVERTISEMENT Industry insiders say the 'M2' version represents more than a mere rebrand. It reportedly involves fully separate source code and systems designed to satisfy U. S. regulators and reassure users that data and operations are controlled domestically. But building and migrating some 170 million users carries risks: fragmentation of creator and brand ecosystems, potential loss of content anytime users delay updating, and disruptions for advertisers reliant on consistent U. S. reach. One senior analyst at eMarketer, tracking platform growth, noted that while TikTok's U. S. revenue had slowed in early 2024, its user base remains resilient. Still, the shift could alter engagement patterns. Advertisers are reportedly waiting for regulatory clarity before reallocating ad spends—many are wary of campaign uncertainty tied to a dual‑app environment. On the political front, the bill forcing divestment won bipartisan support in 2024 to curb data security threats, citing TikTok's potential vulnerability to influence operations by foreign actors. The law originally prescribed a January 2025 deadline, but President Biden's enactment in April 2024 and subsequent legal disputes shifted the compliance date. President Trump's extension to September 17, 2025, accommodates final negotiations. Expected approval from Australia and Canadian regulators for a pilot 'Notes' app—which decouples photo-sharing features—demonstrates TikTok's evolving architecture and ability to modularise code for geopolitical compliance. The planned U. S. pivot appears to follow similar design logic. ByteDance, parent of TikTok, declined to comment. U. S. officials, including the Committee on Foreign Investment in the United States, are reviewing proxy structures to ensure full operational and data separation. Final approval will require both Washington and Beijing to accede, with the latter retaining leverage through export controls on algorithmic technology. Major bid participants are still emerging. Oracle reappears as a likely contender given prior discussions. Meanwhile, Project Liberty—a consortium led by Frank McCourt, backed by Kevin O'Leary—has pitched to replace TikTok's algorithm with one focused on user data sovereignty and could resurface in late-stage talks.
Hans India
07-07-2025
- Business
- Hans India
TikTok May Soon Return in New Avatar Amid Sale Talks and September App Launch
After months of uncertainty surrounding TikTok's fate in the United States, there appears to be a breakthrough on the horizon. A new report from The Information suggests that TikTok could be making a fresh start this September with a revamped version of the app and a potential deal in place that aligns with the U.S. government's legal requirements. Despite the 'divest-or-ban' law being in effect since January 2025, the app has only faced a single day of actual service disruption in the country. Now, it looks like TikTok's parent company, ByteDance, is inching closer to a solution that could avoid a full ban. According to the report, a sale is nearly finalized that would see a group of 'non-Chinese' investors—led by Oracle—take over a significant portion of TikTok's U.S. operations, while ByteDance retains a minority stake. This proposed structure is said to comply with the Protecting Americans from Foreign Adversary Controlled Applications Act. However, the deal still requires a green light from the Chinese government, which is currently negotiating other trade issues with the Trump administration, particularly over tariffs. In parallel, TikTok's internal teams are working diligently on a new version of the app, internally referred to as 'M2.' This updated platform is expected to launch in U.S. app stores on September 5, 2025, effectively replacing the existing version of TikTok, which could be phased out by March 2026. Trump's administration had earlier issued a third extension—raising legal eyebrows—that postponed TikTok's ban from app stores. That deadline now expires in mid-September, aligning closely with the proposed M2 app release. If things go according to plan, the original TikTok app will disappear from app stores the day M2 goes live. In related developments, The Wall Street Journal reported that Oracle, a key player in the potential TikTok deal, has secured a groundbreaking agreement with the U.S. General Services Administration. This arrangement gives the federal government access to Oracle's cloud infrastructure at a significant discount—up to 75 percent off licensed software. This move could further strengthen Oracle's position in the ongoing negotiations and reflect broader collaboration with the federal government. Though details of the M2 app remain limited, it is expected to carry over much of the core functionality and user experience from TikTok, ensuring a seamless transition for its millions of American users. The big shift would primarily be behind the scenes—in ownership, data management, and compliance with national security protocols. The coming weeks will be crucial as all parties seek to finalize agreements, win over regulators in both Washington and Beijing, and prepare for the September rollout. Until then, TikTok continues to walk a tightrope between innovation, diplomacy, and legality—one scroll at a time.
Engadget
03-07-2025
- Business
- Engadget
Here are the letters that let Apple and Google ignore the TikTok ban
More than six months after TikTok was briefly banned, we still don't know exactly what its fate in the US will be. But we do have new insight into the legal wrangling that has allowed Apple, Google and other platforms to continue to support the app. If you remember, TikTok was only "banned" for a matter of hours shortly before President Donald Trump took office in January and delayed enforcement of the law. The app's service was promptly restored January 19, 2025, but the app didn't return to Apple and Google's app stores until February 13. Reporting at the time suggested the companies had lingering concerns about potential liability for running afoul of the Protecting Americans from Foreign Adversary Controlled Applications Act. Back in February, Axios and others reported that the Justice Department had given "assurances" to tech platforms that they wouldn't be penalized for violating the law. Now, we know exactly what Attorney General Pam Bondi told the companied as letters sent to Apple, Google, Amazon, Oracle and other firms have been made public. The letters were disclosed in a Freedom of Information Act Request made by Tony Tan, a software engineer and Google shareholder suing the search giant for not complying with the TikTok ban. In a letter dated January 30, 2025, Bondi tells Apple and Google that "the President has determined that an abrupt shutdown of the TikTok platform would interfere with the execution of the President's constitutional duties to take care of the national security and foreign affairs of the United States." It goes on to state that Apple and Google "may continue to provide services to TikTok … without incurring any legal liability." A followup later dated April 5, 2025 (the day after Trump gave TikTok another 75-day reprieve), Bondi told the companies that "the Department of Justice is also irrevocably relinquishing any claims the United States might have had against" them "for the conduct proscribed in the Act during the Covered Period and Extended Covered Period, with respect to TikTok and the larger family of ByteDance Ltd. and TikTok, Inc. applications covered under the Act." The letters can be read in full below. This embedded content is not available in your region. The law has now been paused three times since Trump took office. Earlier this week, he said that details about TikTok's new ownership could be made public in "about two weeks."
Arabian Post
30-06-2025
- Business
- Arabian Post
Trump Confirms 'Very Wealthy' Buyers Poised to Acquire TikTok
Arabian Post Staff -Dubai U.S. former President Donald Trump has announced that a group of 'very wealthy people' is set to acquire TikTok's U.S. operations, with identities expected to be disclosed in approximately two weeks. He stated that the sale would likely require approval from China's President Xi Jinping, whom he anticipates will greenlight the transaction. This development follows an extension of the deadline — now set for mid‑September — under a 2024 law mandating that ByteDance divest its U.S. TikTok assets or face a ban. Trump granted this third 90‑day reprieve on 19 June, citing negotiations and U.S. investors' desire to maintain the app while safeguarding American user data. ADVERTISEMENT The Protecting Americans from Foreign Adversary Controlled Applications Act, passed in April 2024, requires a 'qualified divestiture' or risk removal from U.S. app stores. ByteDance challenged it in court, but the Supreme Court upheld its constitutionality in January 2025. TikTok was removed temporarily before Trump's administration issued executive orders delaying its enforcement. Trump reversed his earlier stance — once favouring a complete ban — after gaining a large TikTok following during his 2024 campaign. He credited the platform with boosting his appeal among younger voters. A consortium led by Oracle, with interest from firms such as Blackstone, Amazon and Walmart, reportedly lost momentum this spring when China refused to approve the proposed transaction. The impasse was linked to Trump's threat of tariffs, used as negotiating leverage. Several potential bidders have emerged in the course of discussions. Notably, real‑estate magnate Frank McCourt has confirmed he remains ready to support a $20 billion bid through his group, Project Liberty. Other names associated with interest include Kevin O'Leary, former Activision Blizzard CEO Bobby Kotick, YouTuber Jimmy Donaldson — known as MrBeast — and former Treasury Secretary Steve Mnuchin. Negotiations have involved U.S. Vice‑President J.D. Vance's office and TikTok, which has pledged to continue working with U.S. officials and expressed gratitude for the extensions. ByteDance has stated that any deal would require compliance with both U.S. and Chinese legal frameworks. As the mid‑September Reuters‑mandated deadline approaches, Trump's timeline for announcing the buyer coincides with intensifying public and legal scrutiny. Critics, including Senator Mark Warner, argue that repeated extensions exceed presidential authority and compromise U.S. national security. Trade expert Joel Thayer noted that even if the app is sold without its proprietary algorithm, the core TikTok experience could remain affordable — possibly undervalued compared to its full potential. Approval from China remains the primary hurdle. Trump said securing Xi Jinping's consent will be vital to finalising the transaction. Analysts suggest that any concessions — including a rollback of U.S. tariffs — may be part of a broader trade‑off tied to China's agreement. TikTok continues to operate in the U.S. ahead of the deadline, with its managers asserting commitment to user safety and asserting they have no intention of relinquishing presence in the market.
CNBC
30-06-2025
- Business
- CNBC
Trump says he has group of ‘very wealthy people' ready to buy TikTok
U.S. President Donald Trump told Fox News in an interview aired on Sunday that he has a group of "very wealthy people" ready to buy TikTok, whose identities he can reveal in about two weeks. Trump added that the deal will probably need Beijing's approval to move forward, but said "I think President Xi will probably do it," in reference to China's leader Xi Jinping. The president made the off-the-cuff remarks while discussing the possibility of another pause of his "reciprocal" tariffs on Fox News' "Sunday Morning Futures with Maria Bartiromo." Tiktok's fate in the U.S. has been in doubt since the approval of a law in 2024 that sought to ban the platform unless its Chinese owner, ByteDance, divested from it. The legislation was driven by concerns that the Chinese government could manipulate content and access sensitive data from American users. Earlier this month, Trump extended the deadline for ByteDance to divest from the platform's U.S. business. It was his third extension since the Supreme Court upheld the TikTok law just a few days before Trump's second presidential inauguration in January. The new deadline is Sept. 17. The Protecting Americans from Foreign Adversary Controlled Applications Act, of PAFACA, had originally been set to take effect on Jan. 19, after which app store operators and internet service providers would be penalized for supporting TikTok. TikTok went dark in the U.S. ahead of the original deadline, but was restored after Trump provided it with assurances on the extension. Trump, who credited the app with boosting his support among young voters in the last presidential election, has maintained that he would like to see the platform stay afloat under new ownership. Potential buyers that have voiced interest in the app include Trump insiders such as Oracle's Larry Ellison to firms like AppLovin and Perplexity AI. However, it's unclear if ByteDance would be willing to sell the company. Any potential divestiture is likely to require approval from the Chinese government. A deal that would have spun off TikTok's U.S. operations and allowed ByteDance to retain a minority position had been in the works in April, but was derailed by the announcement of Donald Trump's tariffs on China, Reuters reported that month. The president previously floated a proposal for American stakeholders to buy the company and then sell a 50% stake to the U.S. government as part of a joint venture. Experts have previously told CNBC that any potential deal could face legal challenges in the U.S., depending on whether it complies with PAFACA.
