The Biden administration has “indefinitely” shelved a proposed U.S. takeover of the Chinese-owned video app TikTok, according to a Wall Street Journal report.
Last year, the Trump administration brokered a deal that would have had U.S. corporations Oracle and Walmart take a large stake in the popular app on grounds of national security.
The arrangement stemmed from an order by then-President Donald Trump that aimed to ban TikTok in the U.S. unless it accepted a greater degree of American control.
White House press secretary Jen Psaki did not deny the Journal report, but said Wednesday the Biden administration hasn’t taken a “new proactive step” in the process.
Psaki added that the Biden administration is evaluating risks to U.S. data, including those involving TikTok.
A review of the app by the Committee on Foreign Investment in the United States is ongoing and has “expanded beyond TikTok,” Psaki said.
She did not offer a timetable for that process.
Trump targeted TikTok over the summer via a series of executive orders that cited concerns over the U.S. data that the app collects from its users. But courts blocked the White House’s attempted ban from going into effect.
Trump cited concerns that the Chinese government could spy on TikTok users if the app remains under Chinese ownership.
While President Joe Biden has said TikTok is a concern, his administration hadn’t said whether it will continue to try to ban the app or force a sale.
In September, Trump gave his tentative blessing to a proposal by TikTok’s Chinese owner ByteDance involving significant Oracle and Walmart investments in TikTok and handing management of the app’s U.S. user data to Oracle.
CFIUS, however, has not completed its required review of the arrangement. A government deadline for TikTok to sell its U.S. operations has passed.
TikTok is now looking to the U.S. Court of Appeals for the District of Columbia Circuit to review Trump’s divestment order and the government’s national security review.
TikTok and Oracle didn’t return requests for comment on Wednesday. Walmart declined comment and referred questions to the Biden administration.
The Treasury Department, which chairs the CFIUS agency reviewing the TikTok deal, did not reply to a request for comment. Neither did the Commerce Department, which last year had sought to enforce Trump’s orders, nor the Justice Department, which is handling the court challenges.
TikTok has denied it’s a security threat but said it was still trying to work with the U.S. government to resolve its concerns.
TikTok said Oracle and Walmart could acquire up to a combined 20 percent stake in the new company ahead of an initial public offering, which Walmart said could happen within the next year.
Oracle’s stake would be 12.5 percent, and Walmart’s would be 7.5 percent.
Where Oracle stood to handle data management, Walmart said it would provide e-commerce, fulfillment, payments and other services to the company.
TikTok said in a November court filing that the new entity would be responsible for TikTok’s U.S. user data and content moderation.
The Western Journal has reviewed this Associated Press story and may have altered it prior to publication to ensure that it meets our editorial standards.
Truth and Accuracy
We are committed to truth and accuracy in all of our journalism. Read our editorial standards.