‘Biden government wants to force ByteDance to sell TikTok in the US’

The US government has demanded that ByteDance divest its stake in TikTok within the United States. The company confirmed this to various media. If the company does not do so, it risks a possible ban of the app in the country.

The American Committee on Foreign Investment in the US, also known as Cfius, recently submitted the sales order to ByteDance, reported The Wall Street Journal. The company risks a possible ban if it does not divest the American branch of its video app. A TikTok spokesperson later confirmed the news The New York Times and Reuters. Cfius already voted unanimously in 2020 for a spin-off of TikTok within the US, when then-President Trump tried to introduce a ban on the video app.

The possible sales order follows US national security concerns. According to the US, data from TikTok users could be transferred to the government of China. A Chinese security law requires companies in that country to hand over such data if requested to do so. TikTok has previously proposed storing the data of American users with cloud company Oracle. Oracle may also inspect the code together with a supervisor. This concerns the current source code and changes in updates.

The company claimed in a statement Wednesday night that a forced sale would not resolve that perceived safety risk. “A change in ownership would not impose any new restrictions on data flows or access,” the company said. According to TikTok’s board, 20 percent of the shares are held by its Chinese owners. Employees would still own 20 percent and the remaining 60 percent would belong to global investors. The White House did not respond to request for comment.

Earlier this week, Bloomberg reported, based on insiders, that ByteDance’s board is considering spinning off TikTok within the US. The company would consider this in the event that it does not reach an agreement with the government. The company has now reportedly been asked by the American government to divest TikTok within the country.

In early March, the US Congress passed a new law. This gives the US Commerce Department the ability to ban foreign technologies and companies from entering the US if they pose a threat to national security. At the end of February, TikTok was also banned on the phones of government officials.