ByteDance is once again being forced to sell its stake in TikTok US, as The Wall Street Journal reported.
This comes just a week before the TikTok CEO agreed to testify before Congress, which may reveal more details about how TikTok is safeguarding US user data. Though TikTok is routing the US data through Oracle servers, the US government is still suspicious about its inner workings.
Forcing TikTok Selloff in the US
The Biden administration is continuing what the Trump administration has left out – forcing TikTok out of the US or making it sell off its US branch to a local company. These decisions result from suspicious activities of TikTok – where several researchers have pointed out its illegal data collection and sharing practices.
And since the company hails from China, the US government feels a direct threat to its national security. This week, ByteDance was reportedly demanded to sell its stake in the TikTok US wing – according to The Wall Street Journal. This statement was later confirmed by TikTok to Reuters – making it a major blow for the Chinese company.
The short-video entertainment platform is been negotiating with the Committee on Foreign Investment in the United States (CFIUS) for over two years – on its ban citing national security reasons. TikTok has earlier said that ByteDance’s disinvestment wouldn’t address the underlying concerns that the US has.
Yet, even after all these negotiations, CFIUS wants ByteDance to sell its stake in TikTok. And declining this order may result in the app being banned from the country – which is simple for the government based on bills passed by House and the Senate in recent months.
The new bills will let the US government block services that deem to be a national security threat. And TikTok’s recent actions – like admitting its Chinese employees were able to access the US data – give no chance for the company to stand high.