Implementation of Department of Commerce Prohibitions on Transactions Related to TikTok and WeChat Delayed: Prohibitions on Transactions Related to TikTok Delayed Until September 27 Following President’s Approval of Transaction with Oracle and Walmart; Prohibitions on Transactions Related to WeChat Delayed Temporarily Following United States District Court’s Preliminary Injunction

Sullivan & Cromwell LLP - September 21, 2020
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On September 18, the Department of Commerce identified prohibited transactions relating to mobile applications TikTok and WeChat, as required by Executive Orders 13942 and 13943, respectively.  The prohibitions, which were originally to take effect on September 20, include prohibitions on the provision of services related to the distribution and functioning of the TikTok and WeChat apps, including for the purpose of transferring funds or processing payments to or from parties within the United States through the WeChat App, but only apply to “business-to-business transactions” and include several carve-outs.  The effective dates for most of the prohibited transactions have now been delayed.  The Department of Commerce postponed the effective date for certain prohibitions related to TikTok to September 27 following President Trump’s approval in concept of the deal between Oracle, Walmart, and ByteDance, and a Magistrate Judge for the U.S. District Court for the Northern District of California granted a preliminary injunction on September 19 temporarily preventing the prohibitions related to WeChat.”