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The US government has directed TikTok, the popular video-sharing app owned by Chinese company ByteDance, to be sold or face a possible ban in the country. The app has long been accused of posing a national security risk due to the vast amount of user data it collects.
The Wall Street Journal first reported on the request for a change in ownership, which was later confirmed by TikTok to BBC News. According to the report, the US government’s Committee on Foreign Investments in the United States (CFIUS), which oversees national security risks, has unanimously recommended that ByteDance divests from TikTok.
US officials have been expressing concerns for years that user data from the app could potentially fall into the hands of the Chinese government. The Biden administration wants ByteDance to sever its ties with the app in order to create a clear break from China.
TikTok has responded to the reports of the sale order, stating that a forced sale would not alter its data flows or access. The company also said that a change in ownership would not impose any new restrictions on data flows or access and that the best way to address concerns about national security is with transparent, US-based protection of user data and systems.
The social network has been banned on government phones in the US, Canada, and the EU. The development comes a week after new legislation was announced that would allow the US Commerce Department to declare foreign-linked companies national security risks.
TikTok, which is similar to Instagram and Twitter, collects biometric data from users and has access to location data. There is a fear that this information could be passed to the Chinese government. TikTok claims that it has initiated Project Texas, an effort to move all US-based data to the US.
TikTok’s CEO, Shou Zi Chew, is scheduled to testify before the US Congress next week in a widely anticipated showdown.