Technology
Saving Tiktok While Protecting National Security
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- The Protecting Americans from Foreign Adversary Controlled Applications Act regulates applications operated by TikTok and ByteDance based on national security concerns.
- Section 2(a) prohibits distribution, maintenance, or updating of certain foreign adversary controlled applications within the U.S.:
- Entities cannot provide services for these applications through app stores or other marketplaces.
- Effective date of prohibitions is January 19, 2025, with several delays through executive orders until December 16, 2025.
- Section 2(c) allows the President to determine a "qualified divestiture" of TikTok, which would remove prohibitions under the Act if TikTok's control passes from foreign adversaries to U.S. interests.
- A Framework Agreement proposes:
- TikTok’s U.S. operations will be run by a new U.S.-based joint venture, owned 80% by U.S. entities.
- ByteDance Ltd. and its affiliates will own less than 20%.
- New governance and data protection measures will enhance national security.
- The proposed divestiture is seen as a resolution to national security concerns while allowing American users to continue using TikTok.
- The interagency process, led by the Vice President and various national security and law enforcement agencies, reviewed the divestiture plan.
- Findings from this process include:
- TikTok is a significant social media platform for approximately 170 million Americans.
- The divestiture alleviates concerns about foreign control.
- Strict controls on algorithms, data storage within U.S. infrastructures, and ongoing monitoring by trusted U.S. partners will take place.
- The Attorney General is directed not to enforce the Act for 120 days post-order to facilitate the divestiture process.
- The order revokes a previous presidential memorandum and modifies existing orders related to ByteDance and TikTok.
- The President retains the authority to issue further orders necessary for national security.
- The order clarifies that it does not create enforceable rights against the U.S. government or its entities.