Friday, 31 July 2020

Trump Threatens TikTok Ban After Failed Microsoft Bid

Trump Threatens TikTok Ban After Failed Microsoft Bid
Trump Threatens TikTok Ban After Failed Microsoft Bid


US President Donald Trump announced on Friday, July 31 that he would sign an executive order to ban TikTok in the nation. The ban is the most recent move in the US government’s attempt to put pressure on the app. There have been security concerns that ByteDance, TikTok’s owner, has been collecting personal data of US citizens without handling them safely. 

Trump’s declaration came after negotiations between the White House, ByteDance, and potential TikTok buyers including Microsoft. The negotiation failed to result in an agreement.
 

Security Concerns
TikTok is a smartphone application that allows its users to create videos with various special effects. The app has been enjoying rapid growth popularity around the world.
TikTok has 80 million active users in the US, with teenagers being the largest demographic. American teens have been using the app not only for entertainment but also to raise awareness about social issues such as the Black Lives Matters movement.
With growing tension between the US and China, TikTok has been attracting the attention of the US government. Run by the Beijing-based ByteDance, TikTok is said to give its users’ personal data to the Chinese government. Allegedly, it also censors contents that criticize China.
Last week, a bill that would bar US federal employees from using the short-video app was unanimously passed by the US Senate Committee on Homeland Security and Governmental Affairs. The Senate is going to vote on the bill. The House of Representatives has also voted for a similar measure to ban TikTok on government-issued devices.
 

TikTok Ownership Talks
As the US continues to pressurize ByteDance to relinquish ownership of the app, the startup has been considering other options. Kevin Mayer, CEO of TikTok, said that the company was committed to obeying US regulations.
The US government also gave ByteDance the option to divest TikTok’s operations in the US only. It is not clear if for the latter option TikTok’s American services are still linked to the global operations.
Some of ByteDance’s investors, including Sequoia and General Atlantic, have indicated offers to take over the majority ownership of the app. The proposal values it at $50 billion, but according to ByteDance executives TikTok is worth even higher.
Trump’s ban threat came after the negotiation with Microsoft fell through. However, talks are expected to still go on for the next few days. It is not clear either how the ban would be enforced.

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