“Bytedance sells TikTok US business” deadline has been postponed

Originally, the deadline for Bytedance to comply with the order to sell TikTok’s US company was November 12, but it was postponed.

Friday, November 13, 2020, 10:11 GMT

On Thursday, the U.S. Department of Commerce said that the government would not enforce an order that would potentially close down TikTok, given the provisional injunction granted by the Federal Court in Philadelphia, Pennsylvania.

IMAGE SOURCE: ALJAZZERA

“In a paper, the US Department of Commerce confirmed that the moratorium on the closure of TikTok “was postponed and did not take place until legal progress has been made.

ByteDance has lodged a U.S. lawsuit this week. Court of Appeals, hoping to stop pressuring the U.S. government to compel the selling of the U.S. company of TikTok as the deadline arrives. On Thursday, local time, the U.S. Court of Appeals in Washington ordered the administrations of ByteDance and Trump to file motions for the lawsuit and other documents before 14 and 28 December, respectively.

ByteDance signed an agreement with Oracle and Wal-Mart around two months ago to sell part of TikTok’s company to the two firms, with the Trump administration’s acquiescence, but the transaction was never completed. For some weeks, this transaction remained deadlocked and was soon shelved due to the US election. This delay prompted TikTok on Tuesday to bring a complaint before the Court of Appeal to avoid the forced selling of part of TikTok’s company.

Trump’s order requires ByteDance, before 12 November, to sell part of TikTok’s company, but permits a 30-day extension of the deadline, and the new date set by the court exceeds the deadline. The United States, according to sources. On Thursday, the Department of Commerce quoted a decision by the Federal Court of Pennsylvania last month that if it fails to reach a purchase deal by the deadline, the government will not enforce the order to shut TikTok down. TikTok counsel, U.S. Treasury officials supervising the deal, and the U.S. The Department of Commerce did not respond to requests for comment immediately.

In August this year, Trump first ordered ByteDance to sell part of TikTok’s business, and threatened to close TikTok if ByteDance did not find a deal with a US company. The ban has since been postponed twice, most recently on October 30, when a partial injunction against a complaint brought by TikTok users was issued by a Pennsylvania court.

With more than 100 million users in the United States, TikTok is one of the most common applications in the world, and is also Bytedance’s most significant service in the global market. ByteDance and its partners are willing to enter a deal to avert the shut down of TikTok.

Instead of only making an understanding, the wording of the initial order tends to compel Bytedance to divest properties before the deadline. Aimen Mir, a partner at Fuerde Law Firm, said that if an arrangement with ByteDance is reached by the US government, it will settle on its own timing of enforcement. The Deputy Assistant Secretary for Investment Security Affairs of the United States was Mill. Treasury Department which was responsible for the analysis of the United States Committee on Foreign Investment (CFIUS).

Mill said: “Usually, if the U.S. Foreign Investment Committee is quiet for a long time, it means that the government has no strong consensus about what to do next, but this is still an atypical situation.”

Mill claimed that the US Department of Justice would have to go to court to pursue compliance of this divestiture order if the extension proposal has not been accepted.

The executive order released by Trump after August did not clarify the punishment for not divesting properties, but said that the Attorney General is entitled to take all steps required to execute the order.”

“A law professor at the University of Richmond, Carl Tobias, said If the government really needs to get to this point, it can enforce a fine, or it can take serious action, such as a suspension.” On November 12, the U.S. government should delay it until midnight. This approach is rational.

A U.S. Treasury Department spokesperson said in a statement, “The U.S. Treasury Department will still focus on how to reach a solution to the security risks of Bytedance’s acquisition of Music.” He was referring to the music app acquired by Bytedance in 2017. Musical merged it with TikTok. “We have clearly stated the steps required to achieve this resolution to Bytedance.”

Since 1990, only seven purchases of American companies by international companies, four of which were managed by Trump, have been blocked or canceled by the President of the United States.

Reaching a settlement with TikTok was once the Trump administration’s priority. But in recent weeks, the TikTok agreement has been less urgent as Trump has turned his attention to the re-election effort and started to doubt the outcome of last week’s election vote.