President Trump Orders TikTok Divestiture, Citing National Security and User Interests

According to a White House press release issued on September 25, 2025, President Trump has determined that a proposed divestiture of TikTok’s United States operations will adequately address national security concerns while allowing millions of Americans to continue using the popular application. This decision comes after an extensive interagency process involving numerous government departments and consultation with national security experts. The move aims to resolve the issues raised by the Protecting Americans from Foreign Adversary Controlled Applications Act, which targets applications controlled by entities deemed national security risks.

The Act, which became effective on January 19, 2025, prohibits the distribution, maintenance, and updating of foreign adversary controlled applications in the U.S. Subsequent executive orders had delayed the enforcement of these provisions, with the latest delay extending until December 16, 2025. The Act allows for a “qualified divestiture,” which requires a transaction that removes the application from foreign adversary control and prevents former affiliated entities from maintaining an “operational relationship” with its U.S. operations. Such operational relationships include cooperation on content recommendation algorithms and data sharing.

The framework agreement for TikTok’s divestiture outlines a plan for its U.S. operations to be run by a newly established, U.S.-based joint venture. This new entity will be majority-owned and controlled by U.S. persons, with ByteDance Ltd. and its affiliates holding less than 20 percent ownership. The remaining stake will be held by designated Investor Parties. The joint venture will operate under a new board of directors and is subject to rules designed to protect American data and national security.

The interagency process, led by the Vice President in consultation with various agencies including the National Security Council and the Department of Justice, has concluded that this divestiture meets the criteria for a “qualified divestiture.” TikTok, used by approximately 170 million Americans, is not only a source of entertainment but also a platform for content creators and businesses for their livelihoods and advertising. The national security community’s concerns stemmed from the application’s control by a foreign adversary.

The proposed divestiture is expected to resolve these concerns by ensuring the TikTok application and associated platforms are no longer under foreign adversary control. This is primarily achieved through the U.S.-based joint venture structure, with limited foreign ownership. Crucially, the operation of algorithms, code, and content moderation decisions will be under the control of the new U.S. entity. Furthermore, the plan prohibits the storage of sensitive U.S. user data in ways that would place it under foreign adversary control, mandating its storage in a cloud environment managed by an American company. The divestiture also includes provisions for intense monitoring of software updates, algorithms, and data flows by U.S. security partners, and requires that recommendation models using U.S. user data be retrained and monitored by these partners. These measures are intended to safeguard American data and prevent foreign influence.

To facilitate the completion of this divestiture, the Attorney General has been directed not to enforce the Act for 120 days from the date of the order. During this period, the Department of Justice will not take action or impose penalties for noncompliance with the Act. The Attorney General will also issue guidance and inform relevant providers that no violations or liabilities will occur for conduct during this 120-day period or any period prior to the order. The order also asserts the Executive Branch’s exclusive authority to enforce the Act and determine qualified divestitures, directing the Attorney General to preserve this authority against attempted enforcement by states or private parties. The Attorney General will serve as the U.S. Government’s representative under the Framework Agreement, receiving relevant information.

The order also revokes a previous presidential memorandum and amends a 2020 divestment order concerning ByteDance Ltd.’s acquisition of Musical.ly. The current action confirms that the divestiture, when implemented, will resolve national security concerns related to both the Act and Section 721 of the Defense Production Act. The agreement with certain investors, facilitated by the Committee on Foreign Investment in the United States (CFIUS), aims to align their economic incentives with national security compliance.

Article by Ken Buckler, based upon information from The White House

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