TikTok deal with Walmart has been postponed indefinitely
The Wall Street Journal reported on Wednesday that Walmart and Oracle's plan to buy US Tik Tok operations has been postponed indefinitely, as President (Joe Biden) conducts a broad review of the previous administration's efforts to address potential security risks posed by Chinese tech companies.
The TikTok deal - spearheaded by then-president Donald Trump - has slipped since last fall amid the successful legal challenges of the US government's efforts from TikTok's ByteDance.
The administration of former President (Donald Trump) pointed to national security concerns in its targeting of the TikTok platform, arguing that the Chinese government could obtain the personal data of American users, while TikTok denies this claim.
This comes at a time when ByteDance finds itself in legal conflict with the US government, as several federal courts prevent the Department of Commerce's attempt to close Tik Tok operations in the United States.
The Wall Street Journal report, citing people familiar with the matter, said that discussions continued between BiteDance representatives and US national security officials.
These discussions centered on data security and ways to prevent the Chinese government from accessing the information TikTok collects about US users.
No imminent decision is expected on how to solve the problems surrounding TikTok, as the Biden administration determines its response to the potential security risks posed by Chinese tech companies' gathering of data.
National Security Council spokeswoman Emily Horne said: We plan to develop a comprehensive approach to US data security that addresses the full spectrum of threats we face.
“This includes the risks posed by Chinese applications and other software operating in the United States in the coming months, and we expect to review specific cases in light of a comprehensive understanding of the risks we face,” she added.
TikTok has been in talks with Walmart and Oracle since September to finalize a deal that would transfer Tik Tok assets in the United States to a new entity to prevent a total ban on their use in the country.
TikTok, which has more than 100 million users in the United States, features a simple user interface, background music options and various special effects to help users create entertaining short videos.