TikTok Rescue Deal in Jeopardy: Experts Weigh In

The Legal Problems Facing a New Trump TikTok Rescue — and Why They May Not Matter

The proposed deal between TikTok, its Chinese parent company ByteDance, and major investors to rescue the app from a nationwide ban may face significant legal challenges. However, experts believe that these challenges may ultimately fail due to the language of the law mandating the separation.

According to University of Houston Law Center’s law professor Nikolas Guggenberger, the law requires a “qualified divestiture” of TikTok, which refers to control of the company and the algorithm that powers the app. This means that ByteDance can retain no more than a 20% stake in the company. The law also allows the president to determine whether this threshold has been met, giving President Trump significant leeway in negotiating the deal.

The proposed deal, which is currently being negotiated, would see the biggest non-Chinese investors in ByteDance increase their existing stakes and acquire the US operations of TikTok as part of a new entity. This would push Chinese ownership below the critical 20% threshold. However, some experts have raised concerns that this may not go far enough to eliminate Chinese influence and control over the app.

How the Law’s Language May Limit the Ability of Plaintiffs to Challenge the Deal

The language of the law mandating the separation of TikTok and its Chinese parent company may limit the ability of plaintiffs to challenge the deal. The law requires a “qualified divestiture,” which refers to control of the company and the algorithm that powers the app. This means that ByteDance can retain no more than a 20% stake in the company.

The law also allows the president to determine whether this threshold has been met, giving President Trump significant leeway in negotiating the deal. This means that any challenges to the deal may ultimately fail due to the president’s discretion in determining whether the threshold has been met.

The Role of the US Supreme Court in Upholding the Law

The US Supreme Court has already upheld the law against a constitutional challenge from TikTok and TikTok users. This decision may impact the proposed deal, as it establishes a precedent for the law’s constitutionality.

In the decision, the Supreme Court ruled that the law was constitutional and did not violate the First Amendment rights of TikTok users. This ruling may make it more difficult for plaintiffs to challenge the law and the proposed deal.

How the US Supreme Court’s Decision Last Year May Impact the Proposed Deal

The US Supreme Court’s decision last year may impact the proposed deal in several ways. Firstly, the decision establishes a precedent for the law’s constitutionality, making it more difficult for plaintiffs to challenge the law and the proposed deal.

Secondly, the decision may limit the ability of the president to unilaterally decide whether the threshold for “qualified divestiture” has been met. While the law allows the president to make this determination, the Supreme Court’s decision may require the president to follow a more formal process in making this determination.

Implications of the Court’s Ruling for the Future of the Deal

The implications of the court’s ruling for the future of the deal are significant. The decision may limit the ability of plaintiffs to challenge the deal, and may make it more difficult for the president to unilaterally decide whether the threshold for “qualified divestiture” has been met.

However, the decision may also provide a precedent for future challenges to the law and the proposed deal. If plaintiffs are able to successfully challenge the law, it could have significant implications for the future of the deal and the relationship between the US and China.

Potential Alternatives to the Proposed Deal

There are potential alternatives to the proposed deal that could address national security concerns. One alternative is for TikTok to divest its US operations completely, rather than simply reducing Chinese ownership to below 20%.

Another alternative is for the US government to establish a new entity to oversee the operation of TikTok in the US, rather than allowing ByteDance to retain any ownership or control.

These alternatives may be more difficult to implement, but they could provide a more comprehensive solution to national security concerns.

• Divestment of US operations: This would involve TikTok completely divesting its US operations, rather than simply reducing Chinese ownership.
• Establishment of a new entity: This would involve the US government establishing a new entity to oversee the operation of TikTok in the US, rather than allowing ByteDance to retain any ownership or control.

What Alternative Solutions Might Be Proposed to Address National Security Concerns

Alternative solutions to the proposed deal may be proposed to address national security concerns. These solutions could include requiring TikTok to divest its US operations completely, or establishing a new entity to oversee the operation of TikTok in the US.

These solutions may be more difficult to implement, but they could provide a more comprehensive solution to national security concerns.

How These Alternatives Might Differ from the Current Deal

These alternatives may differ from the current deal in several ways. Firstly, they may require TikTok to divest its US operations completely, rather than simply reducing Chinese ownership to below 20%.

Secondly, they may involve the establishment of a new entity to oversee the operation of TikTok in the US, rather than allowing ByteDance to retain any ownership or control.

These differences may have significant implications for the future of the deal and the relationship between the US and China.

The Politics Behind the Trump TikTok Rescue

The proposed deal between TikTok, its Chinese parent company ByteDance, and major investors to rescue the app from a nationwide ban is not just a technical issue, but also a deeply political one.

President Trump’s influence over the GOP-controlled Congress may impact the fate of the deal. Trump has been a vocal critic of TikTok and has threatened to ban the app unless it divests from its Chinese parent company.

The deal may also be influenced by the role of US intelligence officials in shaping policy. US intelligence officials have expressed concern that the CCP could use Americans’ data against them and use TikTok’s algorithm to gain backdoor access to swaths of information on US citizens.

Trump’s Influence over the GOP-Controlled Congress

President Trump’s influence over the GOP-controlled Congress may impact the fate of the deal. Trump has been a vocal critic of TikTok and has threatened to ban the app unless it divests from its Chinese parent company.

Trump’s influence may also lead to changes in the law governing the deal. For example, Congress may pass new legislation that requires TikTok to divest its US operations completely, rather than simply reducing Chinese ownership to below 20%.

The Role of US Intelligence Officials in Shaping Policy

US intelligence officials have expressed concern that the CCP could use Americans’ data against them and use TikTok’s algorithm to gain backdoor access to swaths of information on US citizens.

This concern may lead to changes in the law governing the deal. For example, Congress may pass new legislation that requires TikTok to divest its US operations completely, rather than simply reducing Chinese ownership to below 20%.

The Broader Implications of the Deal for US-China Relations

The deal may have significant implications for US-China relations. The US has been increasingly critical of China’s data practices and has threatened to ban TikTok unless it divests from its Chinese parent company.

The deal may also lead to changes in the law governing the use of Chinese technology in the US. For example, Congress may pass new legislation that requires Chinese companies to divest their US operations completely, rather than simply reducing Chinese ownership to below 20%.

The implications of the deal for US-China relations are significant and far-reaching. The deal may mark a new era in US-China relations, with the US taking a more assertive stance on issues related to data and technology.