TikTok TikTok

American investors could buy TikTok to avoid the US ban

TikTok social platform has exploded during quarantine, however, rumors of the Chinese app being used as a spying tool pose a threat to the US. Read the full article below.

By  Bruno Wharmann
  • US officials including Secretary of State Mike Pompeo have considered banning the application.
  • Donald Trump has also shown a discontent towards the app and is using the presidential campaign to advertise against it.
  • TikTok is under scrutiny in other countries as well. India, for instance banned it last month.

TikTok denies all allegations and says its data centers are located outside of China. Furthermore, they have stated that none of that data is subject to Chinese law. On the contrary, all US user data is stored in the United States, and backed-up in Singapore. 

In a previous article Yaay explained the link between the Chinese app and the US government. Currently, the Committee on Foreign Investment in the United States (CFIUS) is investigating Bytedance's 2016 acquisition of the US app Musical.ly, which earned TikTok millions of users. CFIUS can eventually revert the transaction costing the latter those users. 

TikTok under scrutiny in several countries. What will happen?

TikTok has been trying to distance itself from the Chinese owners and in that attempt hired Disney (DIS) veteran Kevin Mayer as CEO in May. Despite hiring Mayer and TikTok denying accusations, and even if US investors were to buy the Chinese app from ByteDance concerns remain among US officials.  

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