A federal judge in San Francisco on Saturday issued a preliminary injunction blocking a similar Department of Commerce order from taking effect on WeChat, another mobile app owned by a Chinese firm.
The administration of US president Donald Trump has earlier expressed concerns that the personal data of Americans that use TikTok was being passed on to China’s Communist Party.
Last month, Trump signed an executive order giving TikTok’s owner, ByteDance, 90 days to give up ownership of the app to US-owned firms. TikTok has complained the restrictions were motivated by “political considerations relating to the upcoming general election”.
On Saturday, the Commerce Department announced a delay in the TikTok stop order, citing “positive developments” in talks over the fate of the company’s US operations.
ByteDance, US retail giant Walmart and software maker Oracle said on Saturday they had reached a deal that would allow TikTok to continue to operate in the US. Walmart and Oracle will reportedly purchase a minor stake in TikTok Global – a new subsidiary by ByteDance. The newly created US company will control most of the app’s operations worldwide. Trump said he had blessed the deal.