US TikTok sale deadline extended after China cuts off negotiations due to tarriffs
President Donald Trump has issued an executive order extending TikTok’s operations in the US for 75 days. The decision is intended to give his administration more time to finalise a deal that would bring the social media platform under US ownership.
The original plan was to transfer TikTok’s operations into a new US company with American investors holding the majority and ByteDance retaining a minority stake. However, China’s recent objection to the deal due to the recently imposed trade tarriffs by the Trump administration stalled negotiations.
Before the tariffs were announced, the deal seemed almost complete. Negotiations had been ongoing for months, involving former Vice President Mike Pence’s team, potential investors and ByteDance officials. The proposed deal included a 120-day period for completing paperwork and obtaining financing. All parties involved – including existing and new investors, ByteDance, and the Trump administration – had initially approved the deal.
Despite this setback, President Trump remains optimistic about reaching a solution within the extended time frame.
ByteDance confirmed discussions with the US government about a possible solution, but stressed that a deal has not yet been finalised and would be subject to approval under Chinese law.
The extension is the second time President Trump has temporarily delayed implementation of a 2024 law banning TikTok after ByteDance failed to divest its US operations. The law, passed with bipartisan support and upheld by the Supreme Court, cites national security interests as justification for the ban. China’s Foreign Ministry, however, denies any involvement in the collection or sharing of data from abroad.
Some lawmakers, including Raja Krishnamoorthi, co-author of the TikTok Act, have expressed impatience with further delays and are urging swift action to comply with the law and secure TikTok’s future. While there has been some criticism of the executive order to extend TikTok’s operation, it is unlikely to face legal challenges because of the difficulty of legally empowering plaintiffs, who would have to show that they were harmed by the postponement.
European issues
ByteDance’s legal troubles are not limited to the far side of the Atlantic. The company is expected to be fined €500 million by Ireland’s Data Protection Commissioner (DPC) following a four-year investigation into TikTok’s practices of potentially sending European user data to China. The DPC’s decision, expected later this week, is one of the largest fines under GDPR and is the second fine imposed on TikTok in less than two years.
Concerns about the collection and processing of EU citizens’ data by Bytedance arose in 2021 when allegations surfaced that staff in Beijing had access to personal data of TikTok users. While TikTok acknowledges that user data can be accessed from China in specific situations, the company denies that information is routinely transferred to the country. The issue has sparked controversy, as many Western countries consider Chinese ownership of TikTok a national security risk because of Beijing’s legal requirements for companies to share data on demand.
These fears have led to a ban on TikTok on government devices in several countries. The DPC, which acts as TikTok’s primary privacy regulator in Europe, has been working with counterparts in other countries to finalise the fine amount, which Bloomberg says will exceed €500 million.
This latest fine follows a €345 million fine imposed by the DPC on TikTok in 2023 for inadequate handling of children’s data and insufficient age verification measures.
TikTok has said it plans to invest €12 billion in European data security, including storing user data in Norway and Ireland and using a British cyber security firm, NCC, to monitor data traffic.
The DPC and TikTok have yet to comment officially on the case.
Business AM
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