Biden Administration Demands TikTok’s Chinese Owners Sell Stake Or Face Ban In The US

Things are not looking great for TikTok as far as a potential ban in the US is concerned.

A new insider report published by The New York Post has gone on to speak about how the app has received a new demand from the Biden administration. And that includes selling a stake or facing the consequences of a US ban.

This was confirmed today by The Wall Street Journal which cited the news as per sources familiar with the matter. And as you can imagine, the decision is set to be a rather dramatic one.

The US is really putting great pressure on TikTok after the app was accused of carrying out surveillance against several US citizens whose details were shared with authorities belonging to the Chinese Government.

If this is indeed implemented, the decision would be the most dramatic one taken as a part of a new line of steps enforced by American officials citing fears of a threat to the country’s national security.

Today, TikTok has a widespread audience comprising nearly 100 million American users. And it’s definitely not a market that the company would wish to compromise upon so we might be seeing a sale take place sooner than later.

The White House is yet to comment on the matter but a spokesperson for the firm mentioned through a statement aimed at Reuters how protecting the country’s national security seems to be the main goal here. And carrying out divestment does not solve the issue. But an alteration in the likes of ownership wouldn’t impose any new kinds of restriction regarding data flow or access to it.

Meanwhile, the company’s Chief Executive is all set to make an appearance in front of Congress as well as next week. And therefore in case a ban does get implemented, it would be in danger of facing huge legal hurdles.

The Trump administration mentioned in the year 2020 how it had plans to ban the app but had to face so many court rulings.

TikTok and the respective Committee regarding Foreign Investment in the US have been negotiating the terms for around two years now. This had to do with data security requirements. Moreover, the app claims it has even spent a staggering $1.5 billion on efforts to keep data security at bay.

It even rejected allegations linked to spying too. As reported by the WSJ today, this demand for a sale was only done recently.

Read next: This Report Reveals Over 720 Million Credentials Leaked in 2022 Alone
Previous Post Next Post