deneme bonusu
TikTok faces ultimatum from Biden administration: Sell or be banned | Insider Feeds %

TikTok faces ultimatum from Biden administration: Sell or be banned




In a nutshell: The US government is pressuring ByteDance to sell TikTok over national security concerns. TikTok has offered a $1.5bn security plan to protect user data from Chinese government influence, but the Biden administration demands a change in ownership. Will ByteDance sell or risk losing 100 million US users?

The Whitehouse has demanded that TikTok’s Chinese owners divest themselves of the company, or it will ban the popular app in the US. The Biden administration has had a contentious relationship with TikTok owner ByteDance for the last few years, having barred the app on government-owned devices over national security concerns.

On Wednesday, anonymous insiders told The Wall Street Journal that the Committee on Foreign Investment in the US, or Cfius (pronounced sif-ee-ous), made the demand recently after criticism that the administration was not taking the threat to national security seriously enough. Divestment would mean that Beijing-based ByteDance would essentially have to sell TikTok to someone outside of China.

According to TikTok, worldwide investors own 60 percent of the company. Its founders, Zhang Yiming, ByteDance Chief Executive Liang Rubo, and others, own 20 percent, including most of the voting shares. Employees another 20 percent through stock options.

The company claims that forcing the sale would not alleviate the Biden administration’s perceived security risks.

“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,” said TikTok spokeswoman Brooke Oberwetter.

Instead, TikTok offers an alternative by pledging $1.5 billion to implement a system to protect US customers’ personal information and platform content from Chinese government influence and data collection.

“The best way to address concerns about national security is with the transparent, US-based protection of US user data and systems, with robust third-party monitoring, vetting, and verification, which we are already implementing,” Oberwetter said.

Indeed, Reuters notes that TikTok finished migrating US user data to stateside Oracle servers last June. ByteDance hoped the transfer would satisfy Washington’s security concerns, but it appears it hasn’t. TikTok CEO Shou Zi Chew is scheduled for a grilling in front of Congress next week.

The Biden administration and the Treasury Department, which heads Cfius, declined to comment on the alleged divestiture demand. However, the stance taken by US officials has been unequivocal for over two years.

Senior US officials, including Deputy Attorney General Lisa Monaco, continue to raise alarms about China’s national security legislation. The law mandates that Chinese-owned companies surrender customer data upon request, making Washington worry about potential surveillance by Beijing. The officials argue that even if TikTok implements its promised $1.5 billion security plan, the Chinese-owned company would still be at risk of data breaches and manipulation by the Chinese government.

Image credit: Anthony Quintano


Source link

Subscribe to our magazine

━ more like this

Understanding and Excelling in the HSC Short Syllabus in Bangladesh

Introduction: The Higher Secondary Certificate (HSC) Short Syllabus in Bangladesh has been introduced to overcome academic challenges and ensure effective learning. This comprehensive guide explores...

A Detailed Exploration of SSC Exam Routine 2024 in Bangladesh

Introduction: Embarking on the academic journey, the Secondary School Certificate (SSC) exam holds paramount significance for students in Bangladesh. This comprehensive guide navigates the intricacies...

A Comprehensive Guide to PESP Finance Gov BD

Introduction: In the intricate world of financial management, PESP Finance Gov BD emerges as a key player. This comprehensive guide explores the various aspects of...

Innovative Uses for Coffee Burlap Bags in Your Garden

Demystifying Coffee Burlap Bags Before we dive into their myriad uses, let's acquaint ourselves with coffee burlap bags. Made from robust natural burlap fibers, they're...

Unlocking the Benefits of Online Shopping with Credit Cards: Why OneCard Might Be Your Best Bet?

Indians are increasingly opting for online shopping over in-store purchases, with credit card transactions online outpacing those at physical Point of Sale (PoS) locations...