Trump Probably Won't Ban TikTok, As ByteDance Will Sell TikTok US To Microsoft

TikTok¡¯s Chinese parent ByteDance has agreed to completely divest its operations in the US in response to US President Donald Trump¡¯s threat to ban the app completely within the nation.

Reuters

As per a new proposed deal, the app will now be completely handled by Microsoft Corp within the US.

As per U.S. officials quoted in a recent Reuters report, TikTok posed a ¡°national risk¡± with the kind of personal data it procured from its users. That was until the app was headed by ByteDance. With the backout by the Chinese firm, it is to be seen whether Trump lets the app operate in the country or not.

ByteDance backed out after its previous appeal of keeping a minority stake in the TikTok U.S. division was rejected by the White House.

As per the new proposed deal, ByteDance would exit completely from the operations, leaving Microsoft as the new in charge of all U.S. user data of the app.

(Representative Image: Reuters)

The report clarifies that both White House and Microsoft declined to comment on the update.

TikTok backlash

TikTok has faced massive backlash from several governments in the midst of anti-China sentiments and reports of security loopholes in the app. Indian government, for instance, recently banned the app in the country citing data security concerns.

Apart from the security risks on the app which have been pointed out time and again, even by the renowned hacker group Anonymous, there is a growing sentiment across the globe to boycott Chinese goods and services. The opinion follows a blame of the spread of the pandemic from the country as well as its recent military clash on the borders with India.

In case POTUS decides to stick to his stance, a similar fate for the app in the US can follow suit as was seen in India.

(Representative Image: Reuters)

However, if the deal is accepted by the White House and Microsoft manages to acquire TikTok, it would mark a massive re-entry of the tech giant on social media and consumer front, especially in an audience of young.

Other tech giants like Apple, Facebook and Google were also potential buyers of the Chinese app¡¯s US operations at some point. But their recent regulatory trial in the US meant they were not really in a rush to make an acquisition that might be muddled with national security concerns.