US ban on China’s TikTok could cut app stores, advertisers: White House document


Flags of China and the US are seen near a TikTok logo in this illustration photo taken July 16, 2020.

Florence Lo | Reuters

President Donald Trump’s executive order banning China’s TikTok could prevent US app stores from offering the popular short video app and making ads on the platform illegal, according to a White House document seen by Reuters.

Trump last week signed an order banning transactions with TikTok if her parent ByteDance does not reach a deal to disinvest it in 45 days. It did not specify the scope of the ban, and only stated that the U.S. Department of Commerce would define which transactions were excluded at the end of the 45-day period.

The White House document, sent to supporters last week, provides insight into the thinking of the Trump administration. It shows that the US government is considering disrupting important aspects of TikTok’s operations and funding, amid concerns over the security of personal data that the app handles.

“For example, prohibited transactions may include agreements to make the TikTok app available in app stores … purchase of advertisements on TikTok, and acceptance of terms of service to download the TikTok app to a user device,” the document states.

A source familiar with the White House document verified its authenticity. TikTok did not immediately respond to a request for comment.

Some tech industry experts say eliminating the possibility of TikTok being offered in the app stores of Apple and Google owner Alphabet, who in turn can download it on iPhone and Android smartphones, could remove growth from the app.

“That kills TikTok in the US,” said James Lewis, a cyber security expert with the Washington-based Center for Strategic and International Studies. “If they want to grow, these rules are an enormous obstacle.”

However, he added that the US government may not be able to prevent Americans from downloading TikTok from foreign websites.

Apple and Alphabet did not immediately respond to requests for comment.

Following Trump’s executive order last week, TikTok told advertisers that it would continue with advertising campaign plans, refunds it could not pursue, reimburse and work with major influencers to migrate to other platforms in the event of a ban. Some advertisers told Reuters they were drawing up contingency plans and considering other apps for their marketing.

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