The US authorities is making an attempt to pressure ByteDance to promote TikTok

The Biden Administration is considerably growing stress on ByteDance simply days earlier than TikTok’s CEO is about to testify in entrance of Congress. America authorities is now “demanding” that ByteDance promote TikTok, in response to a new report in The Wall Road Journal.

The brand new demand, which TikTok confirmed to Reuters, is a significant blow to the corporate, which has spent greater than two years negotiating with the Committee on Overseas Funding in the US (CFIUS) over its future within the nation. These negotiations resulted in a sweeping partnership with Oracle and different measures meant to safeguard US customers’ information.

Now, CFIUS has reportedly informed TikTok that it desires ByteDance to promote its stake within the firm in spite of everything. If it doesn’t, the app may face a nationwide ban. The Home and the Senate have each lately launched payments that will make it simpler for presidency officers to ban TikTok and different companies deemed to be a nationwide safety risk.

TikTok didn’t instantly reply to a request for remark. The corporate has beforehand said that divesting from ByteDance wouldn’t tackle the federal government’s underlying considerations about information safety. Nonetheless, Bloomberg reported earlier within the week that TikTok executives had been “discussing the potential of separating from ByteDance” if the CFIUS talks had been to fall by means of.

After all, this isn’t the primary time the US authorities has tried to pressure ByteDance’s hand. Former President Donald Trump additionally tried to compel TikTok to promote itself, however was in the end unsuccessful. The most recent threats of a complete ban on the app are, nonetheless, positive to amp up stress on TikTok CEO Shou Zi Chew, who is about to make his first Congressional look subsequent week.

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