Donald Trump announced that he would "most likely" grant TikTok a 90-day extension to finalize a deal that would prevent a shutdown in the United States.¹ This development comes as TikTok's ownership has been under scrutiny, with concerns over data security and the app's ties to China.
Background of the TikTok Controversy
The controversy surrounding TikTok began when the US government launched an investigation into the app's acquisition of (link unavailable), a social media platform popular among teenagers. The Committee on Foreign Investment in the United States (CFIUS) was concerned that the acquisition might pose a risk to national security.
Trump's Involvement
President Trump became involved in the controversy, signing an executive order that would force ByteDance, TikTok's parent company, to divest its ownership of the app. The order cited national security concerns, alleging that TikTok might be sharing user data with the Chinese government.
The Proposed Deal
To address these concerns, TikTok proposed a deal that would create a new entity, TikTok Global, which would be headquartered in the United States. Oracle and Walmart would acquire a stake in TikTok Global, which would oversee the app's operations in the US.
The 90-Day Extension
The 90-day extension announced by Trump would give TikTok more time to finalize the deal and address the concerns of US regulators. This move is seen as a positive development for TikTok, which has been facing uncertainty over its future in the US.
Implications of the Extension
The extension has significant implications for TikTok's users and the broader tech industry. If the deal is finalized, it would allow TikTok to continue operating in the US, albeit with new ownership and oversight structures.
However, the extension also raises questions about the future of tech regulation in the US. The TikTok controversy has highlighted the need for clearer guidelines on data security and foreign ownership of tech companies.
Conclusion
The 90-day extension announced by Trump provides a temporary reprieve for TikTok, but the app's long-term future in the US remains uncertain. As the deal negotiations continue, one thing is clear: the TikTok controversy has significant implications for the tech industry and the future of data security in the US.
