Saving TikTok While Protecting National Security

The order directs federal agencies to implement the Protecting Americans from Foreign Adversary Controlled Applications Act, which regulates foreign-controlled applications, specifically TikTok and its parent company, ByteDance Ltd. The Act prohibits entities from distributing, maintaining, or updating these applications within the U.S. territory. However, the order also allows for a "qualified divestiture," which means TikTok can continue to operate if it is no longer controlled by a foreign adversary. A plan has been proposed for TikTok's U.S. operations to be operated by a new U.S.-based joint venture, which will be majority-owned and controlled by U.S. persons.