United States of America: President signed Executive Order on TikTok divestiture focusing on protecting national security

On 25 September 2025, the President of the United States adopted the Executive Order on saving TikTok while protecting national security, determining that a proposed divestiture of TikTok’s U.S. operations constitutes a “qualified divestiture” under the Protecting Americans from Foreign Adversary Controlled Applications Act. The Order affects foreign-adversary controlled applications operated by ByteDance Ltd., including TikTok and associated U.S. operations, with around 170 million U.S. users, including content creators, advertisers, and reliant businesses. Under the Order, TikTok U.S. operations must transfer to a U.S.-based joint venture, majority-owned by U.S. persons, with ByteDance and affiliates holding less than 20 per cent. It also requires that control over algorithms, content moderation, and sensitive U.S. user data is transferred to the new venture and stored in U.S.-based cloud infrastructure. Trusted security partners will monitor software updates, recommendation models, and data flows to protect national security. The Attorney General is directed to suspend enforcement of the Act for 120 days, providing guidance and assurances on liability, while existing Executive Orders and the 2020 Divestment Order are amended or revoked as needed. The divestiture will proceed under the oversight of the Attorney General and the Committee on Foreign Investment in the United States (CFIUS), and, once implementation agreements are executed, will be recognised as a “qualified divestiture,” allowing continued U.S. access to TikTok and related applications while addressing national security concerns.