Rumor: owner pulls TikTok apart from Chinese app for fear of US sanctions

Owner ByteDance has separated TikTok from its Chinese counterpart Douyin in recent months. Separate divisions for product development and marketing have also been created for the app in the United States.

In addition, TikTok now stores all data of American users within the US with a backup in Singapore, Reuters news agency claims based on anonymous sources. ByteDance has not responded to the rumor.

The moves are intended to ensure that CFIUS, the US government agency that approves foreign acquisitions, stops investigating the acquisition of Musical.ly by ByteDance in 2017. CFIUS is investigating the acquisition, because ByteDance is Chinese and it fears that data from US users will be lost. thus end up in Chinese hands.

According to Reuters, ByteDance has recently expanded its team in the US and has now completely separated the development of TikTok from that of Douyin, the app with which Musical.ly merged in 2017. CFIUS declined to comment on the information and has pursued the investigation so far. ByteDance would fear it would have to sell TikTok if it doesn’t take these measures. The same is happening with Beijing Kunlun Tech, which has to sell dating app Grindr.