TikTok, a widely popular social media app, has threatened legal action against U.S. President Donald Trump’s executive order to ban the app.
On Friday, the company said it was "shocked" by the president's order.
"For nearly a year, we have sought to engage with the US government in good faith to provide a constructive solution to the concerns that have been expressed," TikTok said in a statement. "What we encountered instead was that the Administration paid no attention to facts, dictated terms of an agreement without going through standard legal processes, and tried to insert itself into negotiations between private businesses."
On late Thursday evening, President Trump signed executive orders that would ban TikTok and messaging app WeChat in 45 days, unless they are sold by their parent companies.
ByteDance owns TikTok whereas WeChat is owned by a leading gaming company Tencent. Tencent has also invested in Epic Games, which is known for extremely popular video game Fortnite. Besides that, the company also owns a music streaming business, Tencent Music (TME) - Get Free Report, which went public on Wall Street in December 2018.
Tencent’s spokesperson said that the company "is reviewing the executive order to get a full understanding."
As the clock is ticking for TikTok, it's also ticking for Microsoft (MSFT) - Get Free Report as President Trump gave the company a deadline of September 15 to purchase the social media.
Microsoft confirmed on its blog that it's continuing its discussion on the potential purchase of the app.
"Following a conversation between Microsoft CEO Satya Nadella and President Donald J. Trump, Microsoft is prepared to continue discussions to explore a purchase of TikTok in the United States," Microsoft said.
Following the latest news, Microsoft declined TheStreet's request for comment.
As the TikTok ban drama continues, another social media giant Facebook (FB) - Get Free Report is seeing this as a perfect opportunity to capitalize on TikTok's market share. On Wednesday, the company launched Instagram Reels in the U.S and over 50 countries, which TikTok CEO Kevin Mayer slammed as a "copycat product."
"Facebook is even launching another copycat product, Reels (tied to Instagram), after their other copycat Lasso failed quickly," Mayer wrote in a blog post.
TikTok has been under hot water for a few months now. In June, India banned TikTok along with other 58 Chinese apps citing “national security concerns.”
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