TikTok: Walmart and Oracle’s acquisition of the Chinese video-sharing company halted by Joe Biden

TikTok is being sold to American companies Walmart and Oracle, but the deal was put on hold by Joe Biden’s administration. It was reported that the POTUS stopped the sale to review security concerns.

Acquisition of TikTok by American firms to be reviewed

The move seems to show that President Biden is backing Donald Trump in his suspicions that some Chinese tech companies pose a serious security threat in the country. As per The Wall Street Journal, sources who are familiar with the matter revealed that the TikTok deal weakened after the video-sharing service company’s owner ByteDance Ltd. continues to file legal disputes to prove that the service is not a threat to the nation’s security.

Also, there is an ongoing talk between ByteDance and the national security officials. The discussions are mainly about data security and methods on how to prevent the Chinese government from accessing the information that TikTok collects on American users.

“We plan to develop a comprehensive approach to securing U.S. data that addresses the full range of threats we face,” Emily Horne, spokesperson for the National Security Council, said in a statement. “This includes the risk posed by Chinese apps and other software that operate in the U.S. In the coming months, we expect to review specific cases in light of a comprehensive understanding of the risks we face.”

Then again, it is uncertain how the issues with TikTok and its sale to Oracle and Walmart will be solved. It is up to the Biden administration if this deal could still materialize in the future.

Biden’s action on the TikTok sale

Former US president, Donald Trump, issued an executive order that banned Chinese companies from operating in the country. As a result, many tech companies, including Huawei and others, were pulled out.

The ex-POTUS also forced the sale of TikTok to American groups Oracle Corp and Walmart Inc. since the change in ownership will allow it to run. But as mentioned, Biden wants this transaction to be reviewed first before proceeding.

During a press briefing on Feb. 10 at the White House, Press Secretary Jen Psaki told reporters the government hadn’t taken any new actions on the TikTok sale yet. “It’s not accurate to suggest that there is a new proactive step by the Biden White House,” CNBC News quoted her as saying. “There is a rigorous CFIUS process that is ongoing.”