HomeinetUS to ByteDance: Sell your stake in TikTok or face ban

US to ByteDance: Sell your TikTok stake or face ban

Tensions between the United States (US) and China over TikTok have intensified further after the Biden administration said that the Chinese company ByteDance, the owner of the app, must sell its stake in the platform or face a possible ban.

TikTok ban

It is worth noting that 60% of ByteDance is owned by global investors, 20% by employees, and 20% by the company's founders.

See also: United Kingdom: TikTok Ban on Government Devices

According to foreign media reports, the Committee on Foreign Investment in the United States, or CFIUS, recently told TikTok that ByteDance should proceed with this move. US officials are concerned about the data of American users on TikTok, saying that there is specific legislation in China that obliges companies to hand over data if the government requests it. TikTok has over 100 million users in the US. Therefore, Americans are concerned that TikTok transfers user to the government and thus poses a threat to national security. While several states have already banned the use of TikTok on government devices, this is the first time the Biden administration has threatened a blanket ban (a desire also expressed by former US President Donald Trump).

TikTok, on the other hand, told the Wall Street Journal that forcing its Chinese owners to sell their stake in the company would not change much and concerns security. The company argued that its plan to safeguard US data through a deal with Oracle was the best solution. Under TikTok’s plan, called “Project Texas,” all data for American users would be stored in the US. TikTok’s traffic is currently routed through Oracle servers, and in the future, Oracle engineers will be able to inspect TikTok’s source code, according to the company.

See also: United Kingdom: TikTok Ban on Government Devices

TikTok Bytedance USA
USA to ByteDance: Sell your share in TikTok otherwise a ban

If the goal is to protect national security, divestment does not solve the problem: a change of ownership will not impose new restrictions on data or access,” said TikTok spokeswoman Brooke Oberwetter. “concerns security is by protecting user data and systems with U.S.-based systems, with strong monitoring, auditing, and third-party verification, which we already have in place.”

Next week, TikTok CEO Shou Zi Chewwill testify before the US Congress about the operation of the popular app. It is not yet clear whether the Chinese government will approve the divestment from TikTok.

See also: TikTok Favorites: How to find and organize your favorite videos?

China has called on the US to stop “unjustified attacks” against the app through threats of bans.

Source: gizmodo.com

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