‘Government Biden 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 confirms this to various media. If the company doesn’t, it risks a potential ban on the app in the country.
The US Committee on Foreign Investment in the US, aka Cfius, recently submitted the sale order to ByteDance, reported The Wall Street Journal. The company risks a possible ban if it does not divest the US branch of its video app. A spokesperson for TikTok later confirmed the news The New York Times and Reuters. Cfius already voted unanimously for a split from TikTok within the US in 2020, when then-President Trump tried to introduce a ban on the video app.
The possible sale order follows US concerns about national security. According to the US, data from TikTok users can be transferred to the government of China. A Chinese security law requires companies in that country to provide 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 includes 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 security risk. A change of ownership would not impose any new restrictions on data flows or access. According to TikTok’s board, 20 percent of the shares are held by its Chinese owners. The staff would still own 20 percent and the remaining 60 percent would be from global investors. The White House did not respond to requests for comment.
Earlier this week, Bloomberg reported, based on insiders, that ByteDance’s board is considering splitting off TikTok within the US. The company would consider that in case it fails to reach an agreement with the government. The company would now have been asked by the US government to divest TikTok within the country.
In early March, the US Congress pass a new law. This gives the US Department of Commerce 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.