Trump Extends TikTok Deadline to December 16
President Donald Trump has pushed back the deadline for TikTok’s sale or ban, setting it to December 16. This move supports a plan that allows the app to continue operating under new American investors.
This directive from the White House marks the fourth time the deadline has been extended since the law’s initiation on January 19. The 2024 legislation demands a “qualified sale” that necessitates a significant reduction in the operational ties between TikTok and its parent company, ByteDance. It specifically aims to address how content recommendation algorithms are managed. Essentially, if ByteDance’s algorithm returns to the U.S. version of the app, it would contradict this requirement.
According to reports, there are concerns around national security and whether any new arrangement would truly adhere to the law. “Not only does it address national security issues, but I also think it doesn’t quite meet the law,” a report indicated regarding potential arrangements that interfere with algorithm control.
Trump commented on the situation, saying, “We’re doing business with TikTok,” adding that he had recently told China’s Xi Jinping, “he sees everything.”
Under the proposed agreement, TikTok’s operations in the U.S. will be predominantly owned by a group of investors led by Oracle, with ByteDance holding less than a 20% stake. Noteworthy names among the U.S. investors include Oracle, Silver Lake, and Andreessen Horowitz, along with KKR and Atlantic General, according to reports.
Interestingly, there seem to be two options on the table. One involves creating a separate U.S. version of TikTok, equipped with its own algorithms and training infrastructure, as previously noted by reports that TikTok was already working on delineating their U.S. app.
However, any sales must abide by regulations that prohibit maintaining operational relationships with foreign entities. The law especially forbids cooperation concerning recommendation algorithms.
Furthermore, Chinese sources suggest that the U.S. spinoff could still access TikTok’s foundational algorithms and manage the security of U.S. data under certain conditions. This has raised concerns about how much control China might retain over the platform.
The Supreme Court is expected to provide clarity on the enforcement of the 2024 legislation in January. Meanwhile, Trump has repeatedly delayed its enactment as he seeks to negotiate new terms.
TikTok’s influence remains substantial, boasting over 170 million users in the United States, prompting a call from the Supreme Court for lawmakers to establish clearer rules regarding algorithm practices.
