Donald Trump announces he will BAN TikTok in the U.S. and Microsoft wants to buy it

Surprised?

I guess you are not.

Trump has been talking about banning TikTok already for a while because he believes that the data uploaded on the app is being shared with the Chinese Government.

"As far as TikTok is concerned, we're banning them from the United States," Trump said to reporters while aboard Air Force One.

The app’s Chinese ownership has raised concerns about the censorship of videos, including those critical of the Chinese government, and the potential for sharing user data with Chinese officials.

He said could use emergency economic powers or an executive order to enforce the action, insisting, “I have that authority” 

The move comes after India‘s government banned a series of apps, including Tiktok, amid claims some of them are using data illegally, and secretly collecting information from people’s phones when they are downloaded.

Trump also made clear he did not support an American company to purchase TikTok's U.S. operations after an earlier report claimed Microsoft was 'in talks' to acquire the platform.

Sources told The New York Times on Friday that a deal was in the works, but it was unclear where the two firms stood.

While Microsoft already owns professional social media network LinkedIn, it would face fewer regulatory hurdles in acquiring TikTok than its more direct competitors, such as Facebook Inc, one of the sources said. But ByteDance's valuation expectations for TikTok of more than $50billion, and its insistence on retaining a minority stake in the app complicated deal talks, another source said.

At the same time, reports had claimed Trump was planning to order TikTok's Chinese parent company, ByteDance to give up ownership of the platform.

"TikTok US user data is stored in the US, with strict controls on employee access. TikTok's biggest investors come from the US. We are committed to protecting our users' privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform," TikTok spokesperson Hilary McQuaide told CNN Business Saturday.

Cybersecurity experts have said TikTok's potential risk to national security is largely theoretical and that there is no evidence to suggest that TikTok's user data has been compromised by Chinese intelligence.

The number of American users has been estimated to be as high as 80 million a month - although because the company is not publicly traded, the estimate by outside analysts is impossible to verify.

The decision to ban Tik Tok was also influenced by Joe Biden after his presidential campaign banned staffers from using the Chinese video-sharing app, citing security and privacy concerns.

In a memo on Monday, Biden's general counsel, Dana Remus, ordered staff members to delete TikTok from both their personal and work phones, and to 'refrain from downloading and using TikTok,' according to Bloomberg.

The memo also bans staff from trading individual stocks without approval from the campaign's general counsel, an unusual step for a presidential campaign.

It has been said by the press that this decision can affect the vote of young people in the US and many are campaigning to encourage youngsters not registered to vote to register now and vote against Trump.

Another important topic is the influencer's industry that is at the moment heavily dependant on TikTok, they are waiting to see if Microsoft deal goes through and they are not affected by this decision.

22:57 UTC Time - 17:57 EDT Time Update

TikTok spokesperson Vanessa Pappas said it was "here for the long run" and called people to "stand for TikTok".

Ms Pappas said: "We've heard your outpouring of support and we want to say thank you. We're not planning on going anywhere."

TikTok later said in a statement: "These are the facts: 100 million Americans come to TikTok for entertainment and connection, especially during the pandemic.

China’s ByteDance has agreed to divest the US operations of TikTok completely in a bid to save a deal with the White House

ByteDance was previously seeking to keep a minority stake in the US business of TikTok, which the White House had rejected. Under the new proposed deal, ByteDance would exit completely and Microsoft would take over TikTok in the United States, the sources said. Some ByteDance investors that are based in the United States may be given the opportunity to take minority stakes in the business, the sources added.

Sunday August 2nd 2020 at 21:05 UTC - 15:05 EAST

A possible sale of Chinese-owned TikTok's US operations to Microsoft is reportedly on hold after Donald Trump vowed to ban the video-sharing app.

A sale was thought close to agreement, but was put in doubt after the US president's warning on Friday.

According to the Financial Times, some executives at ByteDance believe Mr Trump's intervention may just be a negotiating ploy to help Microsoft secure a better deal.

We will keep updating this article to keep you up to date. 

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Mili Ponce

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