TikTok Creator's Lab | Shiho Fukada/Bloomberg
TikTok Creator's Lab | Shiho Fukada | Bloomberg File photo
Text Size:

Washington: President Donald Trump said he would ban Chinese-owned TikTok from the U.S. following concerns about data collection by the popular music-video app, escalating the administration’s clash with China.

“As far as TikTok is concerned, we’re banning them from the United States,” the president told reporters Friday night. Asked when it would happen, he said: “Soon, immediately. I mean essentially immediately.”

Trump said he had the authority to ban the app, owned by ByteDance Ltd., one of China’s biggest tech companies, a move he could make by executive order or under the International Emergency Economic Powers Act.

“I will sign the document tomorrow,” he said just before Air Force One landed in Washington from a visit to Florida.

Trump’s move could upend a potential bid from Microsoft Corp., which was exploring an acquisition, according to a people familiar with the matter.

The president downplayed that idea Friday.

He said it’s “not the deal that you have been hearing about, that they are going to buy and sell, and this and that. And Microsoft and another one. We’re not an M&A company.”

We are deeply grateful to our readers & viewers for their time, trust and subscriptions.

Quality journalism is expensive and needs readers to pay for it. Your support will define our work and ThePrint’s future.

SUBSCRIBE NOW

Microsoft declined to comment.

TikTok has hired almost 1,000 people in the U.S. this year and will be employing another 10,000 into “great paying jobs” across the country, a company spokeswoman said in a statement. The business’s $1 billion creator fund also supports people in the country who are building livelihoods from the platform, she added.

“TikTok US user data is stored in the US, with strict controls on employee access,” she said. “TikTok’s biggest investors come from the US. We are committed to protecting our users’ privacy and safety.”


Also read: A TikTok-Microsoft deal might solve everything


A ban of TikTok would be the latest move by the administration to curb China’s power in global technology. TikTok has become one of the world’s most popular apps. It has been downloaded more than 2 billion times globally and more than 165 million times in the U.S.

The administration’s move came as the Committee on Foreign Investment in the U.S., which reviews acquisitions of American businesses by overseas investors, was investigating the company. ByteDance in 2017 bought Musical.ly and merged it with TikTok. Musicaly.ly was founded in Shanghai but had a substantial following in the U.S. at the time.

Trump said in early July that he was considering a ban as a way to retaliate against China over its handling of the coronavirus. But the app has also sparked concerns about the massive amount of data collected about Americans.

TikTok says American user data is stored in servers in the U.S. and Singapore, not China. But TikTok’s terms of service stipulate that the company may share information with its parent, subsidiary or other affiliates. Previous versions of its privacy policy warned users it could exchange information with its Chinese businesses, law enforcement agencies and public authorities, if legally required to do so.

The administration had been considering requiring the sale of TikTok’s U.S. operations. The administration was prepared to announce a sale order on Friday, according to three people familiar with the matter. Another person said later that the decision was put on hold, pending further review by Trump.

White House adviser Peter Navarro said earlier in July that a sale of TikTok to an American buyer wouldn’t address the U.S. concerns.

“If TikTok separates as an American company, that doesn’t help us,” Navarro said. “Because it’s going to be worse — we’re going to have to give China billions of dollars for the privilege of having TikTok operate on U.S. soil.”

Viral Memes

A Microsoft takeover would have given the software maker a popular consumer app that has won over young people with a steady diet of dance videos, lip-syncing clips and viral memes. The company has dabbled in social-media investments in the past, but hasn’t developed a popular service of its own in the lucrative sector.

TikTok has repeatedly rejected accusations that it feeds user data to China or is beholden to Beijing, even though ByteDance is based there. TikTok now has a U.S.-based chief executive officer and ByteDance has considered making other organizational changes to satisfy U.S. authorities.

“Hundreds of millions of people come to TikTok for entertainment and connection, including our community of creators and artists who are building livelihoods from the platform,” the TikTok spokeswoman said. “We’re motivated by their passion and creativity, and committed to protecting their privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform.”-Bloomberg


Also read: China-backed hackers targeted US biotech firm Moderna for Covid vaccine research, says report


 

Subscribe to our channels on YouTube & Telegram

News media is in a crisis & only you can fix it

You are reading this because you value good, intelligent and objective journalism. We thank you for your time and your trust.

You also know that the news media is facing an unprecedented crisis. It is likely that you are also hearing of the brutal layoffs and pay-cuts hitting the industry. There are many reasons why the media’s economics is broken. But a big one is that good people are not yet paying enough for good journalism.

We have a newsroom filled with talented young reporters. We also have the country’s most robust editing and fact-checking team, finest news photographers and video professionals. We are building India’s most ambitious and energetic news platform. And we aren’t even three yet.

At ThePrint, we invest in quality journalists. We pay them fairly and on time even in this difficult period. As you may have noticed, we do not flinch from spending whatever it takes to make sure our reporters reach where the story is. Our stellar coronavirus coverage is a good example. You can check some of it here.

This comes with a sizable cost. For us to continue bringing quality journalism, we need readers like you to pay for it. Because the advertising market is broken too.

If you think we deserve your support, do join us in this endeavour to strengthen fair, free, courageous, and questioning journalism, please click on the link below. Your support will define our journalism, and ThePrint’s future. It will take just a few seconds of your time.

Support Our Journalism

Share Your Views

LEAVE A REPLY

Please enter your comment!
Please enter your name here