Can Trump demand payment from the Microsoft, TikTok deal? Probably not

The fight for TikTok’s future intensified this week when President Trump insisted that the U.S. government receive payment for its sale.

8/6/2020 4:38:00 AM

The Treasury Department did not respond to inquiries from ABC News about how it could receive payment in the event of a successful deal.

The fight for TikTok’s future intensified this week when President Trump insisted that the U.S. government receive payment for its sale.

on TikTok, a social platform that allows users to share short videos, to allow it to avoid a ban."A very substantial portion of that price is going to have to come into the treasury of the United States because we are making it possible for this deal to happen," Trump said Monday."Right now, they don't have any rights unless we give it to them."

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The Treasury Department did not respond to inquiries from ABC News about how it could receive payment in the event of a successful deal.MORE: Trump says TikTok will be shut down in US on Sept. 15 unless a deal is madeBut through the little-known Committee on Foreign Investment in the United States, which is based at the Treasury Department and evaluates the national security risks of foreign investments, the president does have the authority to either compel a sale or order the company to cease its operations.

The force of a sale is not without modern precedent.In 2019, the U.S. government demanded the owners of Grindr, a gay social networking app, surrender ownership of their company. CFIUS determined that Grindr's ownership -- Beijing Kunlun Tech Co., a Chinese gaming company -- posed a risk to national security.

This Feb. 25, 2020, file photo, shows the icon for TikTok in New York. President Donald Trump will order China's ByteDance to sell its hit video app TikTok because of national-security concerns, according to reports published Friday, July 31, 2020.

This Feb. 25, 2020, file photo, shows the icon for TikTok in New York. President Donald Trump will order China's ByteDance to sell its hit video app TikTok because of national-security concerns, according to reports published Friday, July 31, 2020.

AP, FileThe CFIUS has focused its efforts recently on investigating Chinese investment deals into companies with significant U.S. influence.Of the 552 transactions that CFIUS reviewed between 2015 and 2017, more than 25% were Chinese investments,from the Center for Strategic and International Studies.

ByteDance, TikTok's parent company, did not seek authorization from CFIUSwhen it purchased Musical.lyin 2018, which is one of the reasons TikTok is now under investigation by the committee. As TikTok increased in popularity, worries grew over the possibility that the Chinese government could also use the app to gain information on U.S. citizens.

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MORE: President Trump says he will ban TikTok in United StatesAdditionally, before COVID-19 put the country in crisis-response mode, lawmakers called for a national security probe into TikTok, sounding the alarm that it could be censoring politically sensitive information and potentially be a tool for Chinese national intelligence agencies.

"Security experts have voiced concerns that China's vague patchwork of intelligence, national security, and cybersecurity laws compel Chinese companies to support and cooperate with intelligence work controlled by the Chinese Communist Party," wrote Sens. Charles Schumer, D-N.Y., and Tom Cotton, R-Ark.,

in a 2019 letterto then-acting Director of National Intelligence Joe Maguire."Without an independent judiciary to review requests made by the Chinese government for data or other actions, there is no legal mechanism for Chinese companies to appeal if they disagree with a request," the letter added.

On Wednesday, Secretary of StateMike Pompeoblasted TikTok, WeChat and other social media apps as"significant threats to personal data of American citizens, not to mention tools for CCP (Chinese Communist Party) content censorship."He did not announce any new action against TikTok or others, but said the administration wants"to see untrusted Chinese apps removed from US app stores." Action against TikTok remains"pending," he said.

President Donald Trump speaks during a briefing with reporters in the James Brady Press Briefing Room of the White House, Aug. 4, 2020, in Washington.President Donald Trump speaks during a briefing with reporters in the James Brady Press Briefing Room of the White House, Aug. 4, 2020, in Washington.

Alex Brandon/APTrump has compared payment for the sale of TikTok to a landlord-tenant relationship."I use the expression it’s like the landlord and the tenant, and without the lease the tenant doesn't have the value," Trump said at a briefing Monday evening."Well we are sort of in a certain way the lease. We make it possible to have this great success. TikTok is a tremendous success, but a big portion of it is in this country."

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But experts say the demand of payment from the deal is without precedent and would be considered illegal."My first instinct is that this is not a real policy; this is Trump making something up as he is speaking," said Geoffrey Gertz, a fellow with the Global Economy and Development Program at the Brookings Institution."There's nothing in CFIUS that would give the authority to expect a payment. It's not clear how it would work."

Microsoft, however, confirmed both its interest in the potential purchase of TikTok, and in offering up government compensation. Read more: ABC News »

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Seems a bit more like a mob situation. 'We'll protect you if pay us a monthly sum.' If you don't pay your business gets hit. Trump is full of bullshit as usual. Trump's about as smart as someone who's had their food farted on their whole life. Tariffs. Doesn't take a genius to figure that one out Or the illegals!

No big surprise, I bet my money went to blacks! You people hate Americans benefit from deal? No Maybe not , but somebody will buy a bunch of MS stock in anticipation.. TEAM BIDEN TRYING TO GET OUT OF THE DEBATES!!! They know that BIDEN CAN'T HOLD HIS OWN!! Chicken Little is still in the BASEMENT !!! He can't make a move unless his team tells him to move.. IS THIS THE KIND OF PRESIDENT YOU ALL WANT? WAKE UP PEOPLE !!! VOTE RED ALL THE WAY

He is pushing Microsoft to ack out of this, enabling him to try and ban Tik Tok He just wants a little bit kicked upstairs. Some call it 'tribute' He just makes it up as he goes. The greed and corruption are amazing. 90 days. Make America great again, just like it was before Trump. VOTE! Mob boss wants his cut.

PLEASE HELP OUR FELLOW LEBANESE BROTHERS & SISTERS IN BEIRUT BY DONATING TO RedCrossLebanon 🙏🏼🇱🇧❤️ Just have the Democrats stop trying to steal the money and make a deal ? 🤷‍♂️🤷‍♂️ You guys also said he couldn’t make the deal. From the party that claims to want less government involvement in private business...

Who cares?

Here’s why Microsoft wants to buy TikTok and what Trump has to do with itMicrosoft isn't exactly tech's most consumer-friendly company. But it aspires to break out of its Windows desktop, suit-and-tie, 9-5 image to capture more of the consumer market. By being unable to release stable updates that no one asked for. مردم عزیز ایران و ایرانی ها(لات،سوسول،پزشک،کارگر،هنرمند،فرهنگی و...با ماسک بیاین بیرون و به این وضعیت اعتراض کنید.نکنه دوست دارید تک به تک عزیزانتون مبتلا بشن و از دنیا برن؟!چه فرقی براتون میکنه تو اعتراض ها الاف باشین یا تو این زندگی نکبتی که این حرومزاده ها واستون ساختن؟! He cares more about banning tik tok than handling a pandemic...

Trump plays into China's hands over Microsoft-TikTok cut - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Is this the GOP way now? Shaking down businesses, forcing a sale, and then taking a cut? Why am I not hearing anything from the free market crowd?

Trump says Microsoft should pay 'key money' to Treasury for facilitating TikTok dealPresident Trump says the U.S. should get “a very large percentage” of a TikTok sale price “because we’re making it possible.” A fine way to drop $MSFT price, who could have ever guessed it wouldn't have lasted The art of the ---------------- deal This man is a real trader and business man . THE ART OF DEALS , BUY IT ALL OR NOTHING .

Here’s What China Says About TikTok Being Sold To Microsoft, Potential BanA growing technology confrontation is leading to worsening U.S.-China relations. China would lie as usual...Nothing new anymore. Same old LIES!!! L🤣L!!! AmericanVirus most dangerous than Corona virus.

Microsoft CEO Nadella Wades Into U.S.-China Tensions in TikTok PursuitMerger deals are rarely simple. But Microsoft’s CEO now is attempting to ink a takeover agreement that satisfies not only both the companies and their shareholders, but two governments in bitter competition for technological clout. Ok Reel er in! This seems like a distraction from something the media doesn’t want us to know about

Here’s What China Says About TikTok Being Sold To Microsoft, Potential BanA growing technology confrontation is leading to worsening U.S.-China relations. skleb1234 ArabiFrank skleb1234 10 9 8 7 6 5 4...........? skleb1234 Hey Forbes, no one gives a shit what the commies say, why dont you ask Mr Big Dumb himself KingJames or that old lady looking bag of bones SteveKerr? How about an interesting story for a change?