Regarding the Acquisition of Musical.ly by ByteDance Ltd.
The order prohibits ByteDance's continued ownership of TikTok and its predecessor app Musical.ly in the United States, commanding a full divestiture of U.S. assets and all American user data within 90 days, under the Defense Production Act's national security review authority.
It marks a direct presidential command to break up a foreign company's ownership of one of the largest social media platforms in America, with CFIUS empowered to audit, inspect, and block proposed buyers.
What this order does
What it orders
The order declares ByteDance's ownership of Musical.ly and its TikTok application in the United States prohibited and directs ByteDance to fully divest, within 90 days of signing, all tangible and intangible assets that enable TikTok's U.S. operations, as well as all data obtained from U.S. users. ByteDance must certify in writing to CFIUS that divestment is complete, certify that all divested data has been destroyed, and submit weekly compliance reports to CFIUS until divestment is finished. The Committee on Foreign Investment in the United States (CFIUS) is authorized to approve or block proposed buyers and to conduct on-site inspections, audits, and interviews at ByteDance and TikTok U.S. facilities. The Attorney General is authorized to enforce the order.
The 90-day deadline may be extended by up to 30 days on written conditions set by CFIUS. The order includes a severability clause preserving all remaining provisions if any single provision is invalidated, and the President reserves authority to issue further orders regarding ByteDance and TikTok.
Who it affects
ByteDance Ltd., its subsidiaries, affiliates, and Chinese shareholders, as well as TikTok Inc. (a Delaware corporation). Any prospective third-party buyer of TikTok's U.S. assets is subject to CFIUS vetting. The roughly 100 million U.S. TikTok users whose data must be divested and destroyed are also directly implicated.
Why it matters
U.S. TikTok users' personal data must be divested from ByteDance's control and destroyed. ByteDance faces a hard legal deadline to sell or lose its entire U.S. business. Any prospective buyer must pass CFIUS scrutiny, and continued non-compliance exposes ByteDance to federal enforcement by the Attorney General.
What must happen and when
How the order is supposed to work
ByteDance must submit weekly certifications to CFIUS from signing until divestment is complete. Before finalizing any sale, ByteDance must notify CFIUS of the intended buyer and wait 10 business days for a potential objection. Upon completing the sale, ByteDance must separately certify both full asset divestment and total data destruction. CFIUS then has 90 days to complete its own verification audit, during which it may physically inspect ByteDance and TikTok U.S. premises. The Attorney General holds independent enforcement authority throughout.
Actions and deadlines
- ByteDance must divest all TikTok U.S. assets and American user data
- ByteDance must certify in writing to CFIUS that full divestment is complete
- ByteDance must certify in writing to CFIUS that all divested user data has been destroyed
- ByteDance and TikTok Inc. must submit weekly compliance certifications to CFIUS describing divestiture progress
- ByteDance must notify CFIUS in writing of the intended buyer before completing any sale or transfer
- CFIUS must conclude its post-divestment verification procedures
- Secretary of the Treasury must transmit a copy of this order to appropriate named parties