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The court order was issued after President Donald Trump is expected to decide today whether an agreement can be reached between Oracle and TikTok’s Chinese owner ByteDance on ownership of the video exchange.
The president has security concerns about the deal, primarily from a security standpoint, and wants a solution that addresses them. It could also mean the creation of a new company in which TikTok’s operations in the US would operate separately from the rest.
Wilbur Ross, Minister of Commerce, said:
Under the leadership of the President, we have taken very serious steps to fight against the collection of data by the Chinese on the personal data of American citizens.
The announcement coincides with an earlier presidential decree in early August that gave TikT 45 days to sell its US business to a US-owned company, otherwise they could be banned.
WeChat, which is one of the most popular messaging services, is owned by China’s Tencent, while TikTok’s video-sharing parent company is ByteDance, already mentioned.
A regulation of the US Department of Commerce establishes that US companies will not be able to participate in the distribution of those applications as of Sunday, so this means that both Apple and Google will have to remove the applications from their platform.
The commerce minister also added that the ban will affect TikTok and WeChat differently. TikTok will continue to work once it has been installed, but it cannot be updated. WeChat will be completely banned from Sunday.
The regulation can be revoked before it enters into force if a successful agreement is reached.
Oracle’s share price is 0.5 percent lower after the open, while shares are up 13.5 percent this year.
(CNBC)
Cover image: Â © 2020 SOPA Images
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