NEW YORK/beijing, BEIJING/WASHINGTON (Reuters) – The U.S. government has launched a national security review of TikTok’s owner, Beijing ByteDance Technology Co. 1 billion takeover of U.S. social media-the app Show.m, according to two people familiar with the matter.
FILE PHOTO: The logo of the TikTok application is viewed on a mobile phone screen in this picture illustration February 21, 2019. REUTERS/Danish Siddiqui/Image/File Photo
While the $1 billion the acquisition was completed, it was two years ago, U.S. lawmakers have been calling for the past few weeks, to a national security investigation, to TikTok, the Chinese company can censor politically sensitive content, and to raise questions about how it stores your personal data.
TikTok, it is becoming more and more popular among AMERICAN teenagers, at a time of growing tensions between the United States and China on trade and transfer of technology. About 60% of the TikTok is 26.5 million monthly active users in the United States are between the ages of 16 and 24, the company said earlier this year.
The Committee on Foreign Investment in the United States and exhorting cfius), which reviews deals by foreign investors for their potential national security risks, and has begun a review of the show.m deal, the sources said. TikTok is not for a twist of exhorting cfius, when it acquired the Show.ly, they added, is that it gives US the security of panel size to examine him.
Exhorting cfius has been in talks with TikTok about the steps they can take to prevent the shedding of the show.ly the assets acquired, the sources said. The Details of these conversations, as indicated by exhorting cfius to as climate change mitigation, which can’t be taught. The specific problems encountered by exhorting cfius could not be learned.
The sources asked for anonymity because of exhorting cfius reviews are confidential.
“Although we may not be able to comment on the ongoing legal process, TikTok, has made it very clear that we have no higher priority than gaining the trust and confidence of users and regulators in the united states. be a of that effort includes working with the Congress, and we are determined to do so,” a TikTok spokesman said. ByteDance did not immediately reply to a request for comment.
The U. s. Treasury Department, which chairs, exhorting cfius, did not immediately respond to a request for comment.
Last week, the U.S. Senate’s Minority Leader, and Chuck Schumer, and Senator Tom Cotton asked for a national security probe. They told us that they were concerned about the video-sharing platform to collect data from the user, as well as China’s censorship of content seen by users in the united states. They are also asked TikTok could be focused on foreign influence in campaigns.
“With more than 110 million downloads in the U.S. alone, TikTok is a potential counter-threat we can’t ignore it,” Schumer and the Cotton, Joseph Macguire, deputy director of national intelligence.
TikTok allows users to create and share short videos with special effects. The company has said that the US users data will be stored in the United States, the senators noted that the ByteDance shall be governed by the Chinese laws and regulations.
TikTok says it has no jurisdiction over the content of the app, which doesn’t work in China, and it is not influenced by a foreign government.
Last month, the Musical”.ly’s founder, Alex Zhu, who is the head of the TikTok team began to report directly to the ByteDance CEO Zhang Yiming, is one of the sources said. He has previously been reported, to Zhang Nan, the head of the ByteDance the Douyin, to a Chinese, the short-video app. It was not clear whether this is the move that separates the TikTok organizational of ByteDance of the other holdings in connection with the company’s discussions with exhorting cfius on mitigation.
In October, U.S. senator Marco Rubio asked, exhorting cfius to review ByteDance the acquisition of the show.pl. He also points to questions about the reasons as to why TikTok, “this is only a couple of videos from the Hong Kong protests that have been dominating the international news headlines for months now.”
Facebook CEO Mark Zuckerberg, in which the product will compete with the TikTok, particularly for younger users, has also been criticism of the app on censorship is concerned.
The United States has been increasingly critical of app developers about the security of your personal information that they are dealing with, especially if some of it is going to be the united states military or intelligence personnel.
A Chinese gaming company Beijing Kunlun Tech Co. Ltd. said it is in the pursuit of the sale of the most popular gay dating app Grindr after he was approached by exhorting cfius to national security concerns.
Last year, exhorting cfius forced China’s Ant Financial to scrap plans to buy MoneyGram International Inc. on concerns about the safety and security of the information that can be used for the purpose of identifying the AMERICAN people.
The panel will also be forced to Oceanwide Holdings and Genworth Financial Inc. in order to work with the AMERICAN data from the third-party administrator to make sure the Chinese company could not have access to the insurer’s customers in the united states of america’s personal data.
BYTEDANCE THE RISE
ByteDance, is one of China’s fastest-growing start-ups. The owner of the land, the leading news aggregator, Jinri Toutiao, as well as the TikTok, which has attracted celebrities such as Ariana Grande and Katy Perry.
ByteDance has the Japanese technology giant SoftBank, venture firm Sequoia Capital and the big private-equity firms, including KKR, General Atlantic and Hillhouse Capital Group as investors.
Analysts have called the ByteDance a strong threat from the Chinese tech-industry companies, including social media and gaming giant Tencent Holdings Ltd and search-engine leader Baidu, Inc. Worldwide, ByteDance the apps you have to have 1.5 billion monthly active users, 700 million daily active users, the company said in July.
The seven-year-old Chinese start-up posted a better-than-expected revenue for the first half of the year is 2019 and more than $7 billion, and was valued at $78 billion at the end of last year, sources have told Reuters.
Reporting by Greg Roumeliotis, and Echo Wang, New York, and Yingzhi Yang in Beijing and Alexandra Alper in Washington, D. C.; Editing by David Gregorio