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TikTok not selling to Microsoft

US President Trump had earlier categorically said that he will not extend the September 20 deadline

Monday September 14, 2020 8:32 AM, ummid.com with inputs from Agencies

New York/Beijing: Software major Microsoft in a statement Sunday said TikTok has rejected its offer to purchase the short video app maker's US operations.

Microsoft issued the statement saying its buyout offer has been rejected by TikTok even as the Chinese company faces a ban in the United States - a move that will set a wrong precedent, IT majors have warned.

"ByteDance let us know today they would not be selling TikTok's US operations to Microsoft," the US tech giant said in a statement referring to TikTok's owner, according to AFP.

"We are confident our proposal would have been good for TikTok's users, while protecting national security interests," the statement added.

TikTok ban will set wrong precedent

Meanwhile, the head of Instagram has said he is far from enthused by the prospect of a drastic step to prohibit the functioning of the short video-sharing platform in the country as it may set a wrong precedent.

In an interview to CNBC on Friday, Instagram head Adam Mosseri said that "the risks of a fragmented Internet" may outweigh any short-term benefits that the Facebook-owned platform may gain from a potential TikTok ban.

"If countries start to silo Internet within them," that will be much more problematic than the short-term benefits, he said.

No extension of ban deadline

US President Trump had earlier categorically said that he will not extend the September 20 deadline for China-based ByteDance to sell the US business of TikTok or face the complete ban.

The fesh warning by the US President came even as the Chinese government said the Donald Trump administration's deadline is tantamount to "coercive robbery".

"The tricks of economic bullying and political manipulation that the US played on non-American companies are tantamount to coercive robbery," said a Chinese Foreign Ministry spokesperson, Xinhua news agency reported.

China's export restrictions

The business sales talk of TikTok in the US has hit roadblock after China's update of the technology export rules. The update covers Artificial Intelligence (AI) technologies used by ByteDance.

China last month updated the list of technologies that are subject to export bans. The new list, released jointly by China's Ministry of Commerce and the Ministry of Science and Technology, added 23 items to export restrictions while technical parameters of 21 items were revised.

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