Long-standing plans to craft the sale of TikTok’s US operations to an investor group including Oracle and Walmart have been put on hold.
The indefinite delay, reported for the first time by The Wall Street Journal, was ordered by the administration of President Joe Biden, which is reviewing the findings on TikTok reached by Donald Trump. The former president, who has waged a trade war with China and has repeatedly called Covid-19 a “Chinese virus,” called TikTok, which belongs to the China-backed conglomerate ByteDance, a security threat.
ByteDance prevailed in multiple initial legal challenges to an executive order issued by Trump, which threatened to shut down TikTok unless it was sold to a US-led company. Company executives have held talks with U.S. officials regarding TikTok’s data collection, the use of which has exploded in the United States over the past two years. A central question is whether the Chinese government will have access to US user data.
Biden’s plan, according to the Newspaper report, is to perform a thorough review of the security aspects of data collection.
“We plan to develop a comprehensive approach to securing US data that addresses all of the threats we face,” said National Security Council spokesperson Emily Horne. Newspaper. “This includes the risk posed by Chinese applications and other software that work in the United States. In the coming months, we plan to examine specific cases in light of a comprehensive understanding of the risks we face. ”
One scenario envisioned would see the creation of a third-party data clearinghouse as an alternative to selling TikTok’s US business.