In an order unsealed on Monday, US district judge Carl J Nichols said TikTok's appeal against the ban was "likely to succeed" and that it would suffer "irreparable harm" from even a temporary stop.
A United States court has temporarily blocked the Trump administration's order that would have banned downloading and updating video-sharing app TikTok in the country.
An amicus brief filed by Netchoice, a trade group which includes Google, Facebook and Twitter, said a ban could have important implications for the global internet.
A tentative deal unveiled last weekend would make Oracle the technology partner for TikTok and a stakeholder in a new entity to be known as TikTok Global.
A deal reached between ByteDance and the USA government last weekend was believed to have resolved the standoff between the two parties, but the deal has frayed over disputed details between buyer Oracle and ByteDance. Trump signed an executive order in August that would have banned TikTok starting September 20, citing national security concerns.
TikTok assures Australian users data is safe.
The Commerce Department will comply with a federal judge's decision to delay the administration's TikTok download ban for now but will continue to pursue its implementation, the department said in a statement on Sunday night.
"The prohibition on any use of TikTok code by U.S. developers for any goal is effectively a ban on the building blocks of digital free expression".
As part of the deal, ByteDance will create a USA subsidiary, TikTok Global, which will include TikTok's operations in the U.S. and other countries, excluding China. WeChat, an app used to send messages and make payments, was also given a reprieve from the ban by a separate judge last week.
Here, the government has provided ample evidence that China presents a significant national security threat, although the specific evidence of the threat posed by Plaintiffs, as well as whether the prohibitions are the only effective way to address that threat, remains less substantial. It's a modern-day version of a town square. and it's huge. "It is a threat today". The remaining stake will be acquired by Oracle and Walmart.
TikTok has maintained throughout that it would not provide any U.S. user data to the Chinese government.
Nichols declined "at this time" to block other Commerce Department restrictions set to take effect on November 12.
Mr Shwei said: "The concern here is about data security risk and leaving data vulnerable to access by the Chinese government".
US Department of Justice lawyer Daniel Schwei refuted TikTok's free speech allegations, adding that they are "completely irrelevant" to Mr Trump's measures.
-With assistance from Saleha Mohsin, Justin Sink, Lucille Liu, Kurt Wagner, Peter Elstrom and Vlad Savov.