The US government has reportedly issued an ultimatum to TikTok, stating that the video-sharing app must be sold or face a potential ban in the country. TikTok, owned by Chinese company ByteDance, has been accused of posing a national security risk by collecting data from millions of users.
TikTok confirmed to BBC News that it had received a request for a change in ownership, initially reported by the Wall Street Journal (WSJ). The company argued that a forced sale would not alter its data flows or access. The White House has not yet commented on the issue.
US officials have long been concerned that the app's data could end up in the hands of the Chinese government. The WSJ reported that President Joe Biden's administration is urging ByteDance to divest from TikTok, creating a clear separation from China. According to the newspaper, the Committee on Foreign Investments in the United States (CFIUS), which supervises national security risks, unanimously recommended ByteDance's divestment from TikTok.
A TikTok spokesperson did not dispute the WSJ's report but stated that the term "divestiture" was unclear in practice. The spokesperson suggested that the most effective way to address national security concerns would be through transparent, US-based protection of user data and systems.
TikTok, like Instagram and Twitter, collects vast amounts of user data, including biometric and location data. There are fears that this information could be shared with the Chinese government. TikTok claims it is working to move all US-based data to the US as part of an initiative called Project Texas.
This development follows the recent introduction of legislation in the Senate that would expand the president's authority to ban TikTok nationwide. The Restrict Act would enable the US Commerce Department to designate foreign-linked companies as national security risks.
TikTok is currently banned on government phones in the US, Canada, and the EU. The company's CEO, Shou Zi Chew, is expected to testify before the US Congress next week.