Sale of TikTok to Oracle and Walmart is suspended in US

The sale of TikTok’s operations in the United States to a group formed by companies such as Oracle and Walmart, among others, has been postponed indefinitely, as reported by The Wall Street Journal on Wednesday (10).

According to the vehicle, the suspension of the sale of the video app has to do with the change of government in the country. New US President Joe Biden, who took office in January, wants to review the efforts of his predecessor to address potential security risks posed by data collection from Chinese companies.

“We plan to develop a comprehensive approach to protecting US data that addresses the full range of threats we face,” National Security Council spokeswoman Emily Horne told the publication. That is, a possible ban on TikTok will only happen if the Biden government encounters a problem with the platform.

The deal between the Asian company and the group led by Walmart and Oracle should have been completed in September last year. However, ByteDance, owner of the app, managed to postpone the completion of the transaction when seeking justice.

TikTok x Trump

The ban on TikTok in the US began to be debated after former President Donald Trump claimed that the video platform posed a “threat to national security” as it allegedly provided the data collected from users to the government of China, a practice denied by the app .

Even without providing proof of his claims, Trump threatened to ban TikTok from the country, causing conflicts between the Chinese service and the American government to intensify throughout 2020. As a result, the sale of the app to a U.S. company became mandatory by the then president, in return for the removal of sanctions.

The companies involved in the deal have yet to comment on the suspension of the transaction announced by the government.

0

LEAVE A REPLY

Please enter your comment!
Please enter your name here