ByteDance asks federal appeals court to vacate order of selling TikTok’s U.S. business

In August, Donald Trump had issued an order that required  ByteDance to sell TikTok’s U.S. business by November 12 if a 30-day extension by the Committee on Foreign Investment in the United States (CFIUS) was not granted to it.

ByteDance asks federal appeals court to vacate order of selling TikTok’s U.S. business
ByteDance asks federal appeals court to vacate order of selling TikTok’s U.S. business

ByteDance asks federal appeals court to vacate order of selling TikTok’s U.S. business

ByteDance owned TikTok is in a fix as far as continuing its services in the United States is concerned. In August, Donald Trump had issued an order that required  ByteDance to sell TikTok’s U.S. business by November 12 if a 30-day extension by the Committee on Foreign Investment in the United States (CFIUS) was not granted to it.

As reported by techcrunch, in the wake of Biden’s administration set to take office in January, ByteDance appealed to the federal appeals court to vacate Trump’s order. The company mentioned in the appeal that it had asked the CFIUS for an extension on November 6, but the order hasn’t been granted yet.

With the November 12 deadline imminent, it becomes vital for the company to get the 30-day extension permitted in the August 14 order. Security concerns about TikTok’s ownership by a Chinese company was the primary reason behind the executive order by Trump.

Even though ByteDance maintains that it does not pose any national security threat, in order to prevent the app from being banned, ByteDance reached a deal in September to sell 20% of its stake in TikTok to Oracle and Walmart. However, the future of the deal remains uncertain with ByteDance’s ongoing legal challenge against the divestment order.

The new filing is part of a lawsuit TikTok had filed against the Trump administration on September 18. It had an early victory when the court stopped the U.S. government to ban the app on its original deadline that month.