If the Chinese owners of the social media app TikTok don’t sell their shares, the Biden administration may ban it in the United States.
It was reported by the Wall Street Journal that the pressure came from the Committee on Foreign Investment in the United States (CFIUS) which is overseen by the United States Treasury. TikTok stated it had received communication from CFIUS and did not refute the rumors.
Because its parent company, ByteDance is located in China, the Committee on Foreign Investment in the United States (CFIUS) has requested additional assurances regarding the safety of the popular video-sharing app, citing concerns that the Chinese government may be able to access personal information of American users.
Republicans have criticized the Biden administration for not acting on the perceived threat and there has been an increase in scrutiny and talk of a ban in Congress over TikTok.
On Wednesday, March 15, 2023, TikTok did not provide any details about the fresh demand from CFIUS but responded that a sale would not resolve the stated security risks.
TikTok spokesperson Maureen Shanahan said:
“If protecting national security is the objective, divestment doesn’t solve the problem: a change in ownership would not impose any new restrictions on data flows or access”.
“The best way to address concerns about national security is with the transparent, U.S.-based protection of U.S. user data and systems with robust third-party monitoring, vetting and verification which we are already implementing”.
It has taken TikTok and the Committee on Foreign Investment in the United States (CFIUS) over two years to reach an agreement on how to keep the app open in the country.
Reuters reports that there are more than 100 million active monthly users in the United States alone on the social networking platform in question.
TikTok has stated that “Project Texas,” its initiative to redirect user traffic through Oracle’s cloud servers in Texas to address security issues will continue.
The House Energy and Commerce Committee is conducting an investigation into TikTok’s handling of user data privacy and security and CEO Shou Zi Chew is scheduled to testify later this month.
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