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US ban on TikTok could cut it off from app stores, advertisers: White House document

China and US flags are seen near a TikTok logo in this illustration picture taken July 16, 2020. (Reuters photo)

President Donald Trump’s decision to ban China’s TikTok could preclude American app stores from offering the popular short-video app and illegalize advertising on the platform, a White House document shows.

Last week, Trump signed an executive order banning transactions with TikTok unless its parent ByteDance reaches a deal to divest it in 45 days.

It was not, however, clear what the scope of the ban was except for the fact that the US Department of Commerce would define which transactions would be prohibited at the end of the period.

According to the document that was sent out to supporters last week and seen by Reuters, the US government is contemplating disrupting key aspects of TikTok’s operations and funding.

“Prohibited transactions may include, for example, agreements to make the TikTok app available on app stores ... purchasing advertising on TikTok, and accepting terms of service to download the TikTok app onto a user device,” the document states.

A source familiar with the White House document confirmed its content was authentic. TikTok, however, did not immediately comment on the issue.

Meanwhile, some technology industry experts said if TikTok’s ability cannot be offered on Apple Inc (AAPL.O) and Google owner Alphabet Inc’s (GOOGL.O) app stores, which in turn make it downloadable on iPhone and Android smartphones, the app’s growth would be crippled.

“That kills TikTok in the US,” said James Lewis, a cyber security expert with the Washington-based Center for Strategic and International Studies. “If they want to grow, these rules are a huge obstacle.”

He, however, said that the US government is unlikely to stop Americans from downloading TikTok from foreign websites. Trump’s order itself may not be implemented either.

Negotiations led by Microsoft Corp (MSFT.O) are underway to acquire the North America, Australia and New Zealand operations of TikTok under the Trump administration’s supervision.

If a deal is reached successful, then banning transactions with TikTok will become moot.


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