The White House has announced that a plan for the divestiture of TikTok’s U.S. operations will move forward, following an interagency review process led by the Vice President in consultation with several federal agencies. This action is intended to resolve national security concerns regarding TikTok’s ownership by China-based ByteDance Ltd.
A new joint venture based in the United States will operate TikTok’s U.S. application. The entity will be majority-owned and controlled by U.S. persons, with ByteDance Ltd. and its affiliates holding less than 20 percent ownership. A new board of directors will oversee the company, which must comply with rules designed to protect American user data and national security.
"Accordingly, I have determined that the proposed divestiture would allow the millions of Americans who enjoy TikTok every day to continue using it while also protecting national security," said President Donald J. Trump in his order.
The Protecting Americans from Foreign Adversary Controlled Applications Act prohibits distribution or maintenance of certain applications controlled by foreign adversaries within the United States. Enforcement of this act against TikTok has been delayed multiple times through executive orders, most recently extending non-enforcement until December 16, 2025.
Under the terms of the framework agreement for divestiture:
- The new joint venture will operate independently from any foreign adversary.
- Content recommendation algorithms and code operations will be managed by the U.S.-based entity.
- Sensitive U.S. user data must be stored on cloud infrastructure run by an American company.
- Software updates, algorithms, and data flows will be monitored by trusted U.S. security partners.
President Trump stated that these measures "would protect the American people from the misuse of their data and the influence of a foreign adversary, while also allowing the millions of American viewers, creators, and businesses that rely on the TikTok application to continue using it."
For a period of 120 days following this order, no enforcement actions or penalties under the Act will be taken against entities involved with TikTok or similar applications for activities covered during this time frame or earlier periods since January 19, 2025. The Attorney General is directed to provide guidance and assurance to relevant providers that no liability exists for conduct during these specified periods.
Any attempts at enforcement by states or private parties are deemed an encroachment on executive authority under this order; only federal officials are authorized to enforce provisions related to foreign adversary-controlled applications.
The order also revokes previous presidential memoranda delegating authority under this act and amends earlier orders relating to ByteDance Ltd.’s acquisition of Musical.ly (the predecessor company to TikTok).
The President reserved authority to issue further orders if needed "to protect national security."
This decision follows ongoing legislative and executive scrutiny over potential risks posed by foreign-controlled technology platforms operating in the United States.
