By David Shepardson
WASHINGTON (Reuters) – The Trump administration granted ByteDance a 15-day extension of a divestiture order that had directed the Chinese company to sell its TikTok short video-sharing app by Thursday, the company said in a court filing on Friday.
The U.S Treasury did not immediately comment on Friday.
ByteDance filed a petition on Tuesday with the U.S. Court of Appeals for the District of Columbia challenging the Trump administration divestiture order.
President Donald Trump in an Aug. 14 order had directed ByteDance to divest the app within 90 days.
The Trump administration contends TikTok poses national security concerns, saying the personal data of U.S. users could be obtained by China’s government. TikTok, which has over 100 million U.S. users, denies the allegations.
Trump has said the Walmart–Oracle deal had his “blessing.”
In Tuesday’s court filing, ByteDance said it submitted a fourth proposal last Friday that contemplated addressing U.S. concerns “by creating a new entity, wholly owned by Oracle, Walmart and existing U.S. investors in ByteDance, that would be responsible for handling TikTok’s U.S. user data and content moderation.”
Separate restrictions on TikTok from the U.S. Commerce Department have been blocked by federal courts, including restrictions on transactions that were scheduled to take effect on Thursday that TikTok warned could effectively ban the app’s use in the United States.
A Commerce Department ban on Apple Inc and Alphabet Inc’s Google offering TikTok for download for new U.S. users that had been set to take effect on Sept. 27 has also been blocked.
(Reporting by David Shepardson; Editing by Jonathan Oatis and Dan Grebler)