author: Bart Swiatek
Trump Postpones Ban on TikTok
The US president Donald Trump has decided to postpone the planned TikTok bank in the USA for a week. This is related to a new agreement between TikTok and several American companies, under which they will take a controlling interest in the Chinese company and provide it with new network infrastructure.
IN A NUTSHELL:
- US President Donald Trump delayed the planned TikTok ban in the US by one week (until September 27);
- The decision was made after an agreement between TikTok and several American companies, which are to take a controlling interest in the company and provide it with new network infrastructure in the USA - safe from Chinese influence.
As reported by Variety, the US President, Donald Trump, has decided to delay the TikTok ban in his country announced some time ago until September 27 (this means that the ban will come into force a week later). This happened after it was announced that the American branch of TikTok will be taken over by a group of American companies, led by Oracle and Walmart (these two entities will acquire 20% of its shares). The decision was met with Trump's approval.
The US branch of TikTok will in future be known as TikTok Global. The company will pay 5 billion dollars of additional tax in the USA (this is the so-called Education Fund), but it is not certain whether it is a one-time payment or whether the country's budget will be fed in this way regularly. It is worth noting that on Friday TikTok filed a case in court, trying to block the ban. However, now the company's representatives seem to be satisfied with the agreement reached with American concerns.
“We are pleased that the proposal by TikTok, Oracle and Walmart will resolve the security concerns of the U.S. administration and settle questions around TikTok’s future in the U.S.," reads the statement (via Variety).
Part of the deal between TikTok and Oracle is that the former will also use the latter's network infrastructure (cloud) - in the US of course. This is to resolve any potential security problems with the app and prevent the use of user data by the Chinese intelligence services (concerns about such practices are the official reason for the ban).
It is worth recalling that the decision to block the application in the US is criticized by some experts and journalists - some of them indicate that it may be inconsistent with the first amendment to the US Constitution.