TikTok’s future in the US remains unclear.
James Martin / CNET
A preliminary agreement to sell TikTok’s US operations to software company Oracle and retail giant Walmart were “indefinitely” protected, according to a report Wednesday by The Wall Street Journal. The break is reportedly coming as the Biden government launches its own investigation into potential security risks posed by data collection by Chinese technology companies.
“We plan to develop a comprehensive approach to securing U.S. data that addresses the whole range of threats we face,” Emily Horne, spokeswoman for the National Security Council, told the Journal. “This includes the risk that Chinese apps and other software offer in the U.S. In the coming months, we expect to review specific cases in light of a comprehensive understanding of the risks we face.”
TikTok has been audited by federal agencies throughout 2020. In September, the then Minister of Trade, Wilbur Ross hacked the app in the wake of two executive orders by then-President Donald Trump. Referring to the Chinese government’s access to US user data, Trump’s orders banned transactions with the app owned by China and TikTok had to be sold to a US company. In December, a federal judge ruled against the ban.
“It is not accurate to indicate that there is a new proactive step by the Biden White House” related to TikTok, White House press secretary Jen Psaki said in an information session on Wednesday. She added that there is a “strict CFIUS process underway”, citing the United States Committee on Foreign Investment, which review foreign acquisitions for potential national security risks. Psaki said the administration is evaluating the “risks to U.S. data” of apps, including TikTok, and that there is no timetable for the review.
More recently, TikTok faced investigation after a vulnerability left users private information exposed in January. The security problem discovered by researchers at Check Point the second uncovered in a month.
TikTok, Oracle and Walmart did not immediately respond to requests for comment.