Federal Court Issues a Preliminary Injunction to Block WeChat and TikTok in the United States

by Kay Lee

TikTok and WeChat blocking decrees should enter into force on September 20. The Commerce Department has already issued an order to block TikTok and WeChat apps in the US app stores, including Google Play and the App Store. But yesterday, TikTok and WeChat have received a reprieve from a US ban, and both of them will temporarily work in the United States.

A week before the US TikTok blocking order came into force, ByteDance, which owns the popular short video service, turned down an offer from Microsoft, which was initially believed to be a buyer of TikTok's US business. At the same time, TikTok chose a partnership with Oracle instead of Microsoft.

On September 19, US President Donald Trump announced that he supported the partnership of the Chinese ByteDance with US Oracle and Walmart, and the Commerce Department postponed the blocking of TikTok for a week, until September 27.

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The Internet ProtocolKay Lee

Under the terms of the deal, ByteDance will create TikTok Global with Oracle and Walmart's participation. American companies are ready to acquire 12,5% and 7.5% of TikTok's business and pay $12 billion for their shares. At the same time, ByteDance, seeking a $60 billion valuation, will remain the majority shareholder of TikTok with an 80% stake.

The deal is still pending, and some points are still unclear. Under the terms of the deal, ByteDance agreed to create 25,000 jobs in the United States. Also, the White House separately mentioned a donation of $5 billion to education in the United States, but it seems that it was a big surprise for ByteDance.

ByteDance called the terms of the deal unfair but admitted that such a compromise was better than stopping the business in the United States or completely selling TikTok to the American company.

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The Internet ProtocolKay Lee

The fate of Tencent's WeChat messenger in the United States remains unknown. The judge decided to issue a preliminary injunction to block WeChat in the United States. In her ruling, she noted that although the US government has identified serious threats to national security, but "evidence reflects that WeChat is effectively the only means of communication for many in the community, not only because China bans other apps, but also because Chinese speakers with limited English proficiency have no options other than WeChat."

The Commerce Department has not yet commented on the ruling.