Published 07:31 IST, August 4th 2020
Trump says TikTok will go 'out of business' if not sold to American company within 6 weeks
United States President Donald Trump has said that TikTok will go out of business in September in the United Stated of America if not sold to a American company
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As TikTok faces the heat worldwide due to its Chinese origin and issues related to data security, United States President Donald Trump on Monday has said that the Chinese company will go out of business in September in his country if not sold to American company. He also gave six weeks time to the Chinese company to sell its US operations to an American company. He added tthat the government wanted a financial benefit from the deal.
It's got to be an American company... it's got to be owned here. We don't want to have any problem with security. I set a date of around September 15, at which point it's going to be out of business in the United States," Trump said.
However, to a major surprise, Trump said that a 'substantial portion' of that price will go to Treasury of the United States as he is the one giving the nod for byuing TikTok to American companies. "A very substantial portion of that price is going to have to come into the Treasury of the United States, because we're making it possible for this deal to happen," Trump told reporters.
Microsoft To Purchase TikTok In US
Earlier on August 3, Microsoft Corp confirmed the intent to purchase TikTok service in the US, Canada, Australia, and New Zealand, which will lead to tech giant owning and operating TikTok in these markets. The confirmation comes after Microsoft CEO Satya Nadella held talks with US President Donald Trump as the latter raised concern over the security arising out of the use of China-based social media app.
Microsoft said in a statement that the company “fully appreciates” the importance of addressing the concerns, adding that it is committed to acquiring TikTok “subject to a complete security review”. It also emphasised on providing “proper economic benefits” to the US, including the Department of Treasury.
“Microsoft will move quickly to pursue discussions with TikTok’s parent company, ByteDance, in a matter of weeks, and in any event completing these discussions no later than September 15, 2020,” the tech firm added.
Microsoft and ByteDance have notified the Committee on Foreign Investment in the United States (CFIUS) regarding their intent to explore a preliminary proposal that would involve a purchase of the TikTok service in the United States, Canada, Australia, and New Zealand. The company may invite other American investors to participate in the purchase on a minority basis.
TikTok faces heat
The Indian government has recently banned TikTok and other mobile application which have Chinese origin and has given them 3 weeks time to respond to security questions. US Secretary of State Mike Pompeo in a TV interview earlier this month said that the Trump administration is certainly looking to ban the app. Pompeo said the government remained concerned about TikTok and referred to the administration's crackdown on Chinese telecom firms Huawei and ZTE. A U.S. national-security agency has been reviewing ByteDance's purchase of TikTok's precursor, Musical.ly. Moreover, Australia is also considering a ban on the TikTok app by Chinese developers over security concerns. Several Australian legislators have expressed their concern over privacy issues and the possibility of the Chinese government having access to users' data.
After suffering losses that could be as high as $6 billion due to the ban in India, TikTok also suspended its operations in Hong Kong. TikTok's parent ByteDance reportedly has taken the action in view of the Hong Kong National security law, which imposes Chinese laws in Hong Kong. Thus, companies in Hong Kong might have to share their information with China, thus undermining user privacy and security.
07:31 IST, August 4th 2020