The future of TikTok in the United States remains unclear.
James Martin / CNET
AN preliminary agreement to sell TikTok’s US operations for software company Oracle and retail giant Walmart it was “archived indefinitely,” according to a report published on Wednesday by The Wall Street Journal. The pause comes when the Biden government conducts its own review of the potential security risks posed by data collection from Chinese technology companies.
“We plan to develop a comprehensive approach to protecting US data that addresses the full range of threats we face,” National Security Council spokeswoman Emily Horne told the Journal. “This includes the risk posed by Chinese applications and other software operating in the United States. In the coming months, we hope to review specific cases in light of a comprehensive understanding of the risks we face.”
TikTok faced regulatory scrutiny from federal agencies throughout 2020. In September, then Department of Commerce secretary Wilbur Ross suppressed the application following two executive orders from then President Donald Trump. Citing the Chinese government’s access to U.S. user data, Trump’s orders banned transactions with the Chinese-owned app and demanded the sale of TikTok to an American company. In December, a federal judge ruled against the ban.
“There is no need to suggest that there is a new proactive move by the Biden White House” in relation to TikTok, White House press secretary Jen Psaki said at a briefing on Wednesday. She added that there is a “rigorous CFIUS process underway”, referring to the United States Foreign Investment Committee, which analyzes foreign acquisitions for potential national security risks. Psaki said the government is assessing “risks to US data” from applications including TikTok, and that there is no timetable for the review.
More recently, TikTok has come under scrutiny after a vulnerability left users exposed private information in January. The security vulnerability, discovered by Check Point researchers, was the second discovered In a month.
TikTok, Oracle and Walmart did not immediately respond to requests for comment.