Summary
Approves a plan to sell TikTok's U.S. operations to a new American-controlled company, which fixes national security worries and lets people keep using the app.
What problem does this solve?
The U.S. government was worried that TikTok, controlled by a Chinese company, could be a threat to national security and misuse Americans' data. This order approves a sale that puts TikTok's U.S. operations under a new American-controlled company, protecting user data and removing foreign control.
Who does this affect?
- TikTok users
- Content creators and businesses on TikTok
- ByteDance Ltd.
What does this order do?
Approves the sale of TikTok's U.S. operations
Determines that a proposed sale plan, creating a new U.S.-based company to run TikTok, meets the legal requirements to be a 'qualified divestiture' and resolves national security concerns.
Establishes a new U.S.-controlled company for TikTok
Creates a new U.S.-based company to operate TikTok, with a U.S. majority ownership and a new board of directors. The original parent company, ByteDance, will own less than 20%.
Secures American user data and algorithms
Requires all sensitive U.S. user data to be stored in a cloud environment run by an American company. Algorithms and content moderation will be controlled by the new U.S. company.
Pauses enforcement of the TikTok ban
Orders the Attorney General to not enforce the ban on TikTok for 120 days to allow time for the approved sale to be completed.
Asserts exclusive federal power to enforce the act
States that only the Attorney General can enforce the act, preventing states or private groups from trying to take their own legal action against TikTok.
Changes a previous divestment order from 2020
Amends a 2020 order regarding the acquisition of Musical.ly by ByteDance, aligning it with the new framework agreement and resolving outstanding security concerns.
What is the real world impact?
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Avoids an unpopular ban on a widely used app
Prevents a full ban on TikTok, which is used by 170 million Americans, by creating a deal that addresses security concerns. This avoids political backlash from users and creators who rely on the app.
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Protects national security while allowing a popular app to continue
Creates a new company structure for TikTok's U.S. operations to prevent a foreign country from controlling the app, its algorithm, and American user data. This solves security risks identified by Congress.
When does this start?
This order takes effect on September 25, 2025, and includes a 120-day pause on legal action against TikTok.
120-day pause on enforcement
For 120 days starting September 25, 2025, the Attorney General will not take any action to enforce the ban on TikTok, allowing the sale to be completed.