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(Reuters) – TikTok, owned by China’s ByteDance, has been racing to avoid a crackdown on its U.S. operations after being at loggerheads with the U.S. government, which has expressed concerns over the handling of personal data by the video app.

While ByteDance is still in talks with U.S. investors, the White House and the Chinese government over how to structure the deal, the Trump administration had sought to ban new downloads of the app from U.S. app stores from Sept. 27. A U.S. judge has temporarily blocked that order.

TikTok, in a court filing dated Sept. 23, provided an analysis of how even a temporary ban could affect its business.

** The ban will harm the company irreversibly by first stagnating and then declining its user base. TikTok’s interim head Vanessa Pappas said the app, which was earlier adding about 424,000 new U.S. users daily, saw a drop of over

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After that point, the White House will take additional steps to ban the app from all U.S. users. President Trump has said he would back off the ban if TikTok, which he views as a security risk, is sold to a U.S. owner (Oracle and Walmart are bidding for it) and ByteDance divests itself completely from the company.

It’s unclear what grounds Nichols ruled on. His opinion will be unsealed later today after both parties have a chance to review it for sensitive information. 

TikTok’s lawyers argued during the Sunday hearing that a ban on downloads would irreparably harm its business and the action was unnecessary as it tries to iron out a deal that meets White House approval. The Justice Department argued that a ban on downloads would leave TikTok’s business largely intact while preventing any new users from potentially putting their data at risk.

The Justice Department says

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A federal judge in Washington, D.C., granted a temporary reprieve Sunday to TikTok, the short-form video app that was facing a Trump Administration-imposed midnight deadline that would have prevented users from downloading it.

The order from U.S. District Court Judge Carl Nichols allows U.S. app stores to continue offering downloads. But Nichols did not rule on a second, more comprehensive ban that would halt U.S. companies from working with TikTok.

In a statement, TikTok said it was pleased with the ruling, and it “will continue defending our rights for the benefit of our community and employees.

“At the same time, we will also maintain our ongoing dialogue with the government to turn our proposal, which the president gave his preliminary approval to last weekend, into an agreement,” it said.

The order comes after TikTok, which is owned by the Chinese company ByteDance, struck a deal with Oracle earlier this month

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