Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

TikTok divestment bill would give government stronger legal position, US DOJ says

Published 03/08/2024, 02:52 PM
Updated 03/08/2024, 05:16 PM
© Reuters. FILE PHOTO: U.S. flag and TikTok logo are seen in this illustration taken, June 2, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

By David Shepardson

WASHINGTON (Reuters) -The U.S. government would be in a stronger legal position if lawmakers ordered China's ByteDance to divest TikTok, rather than simply banning the short video app used by 170 million Americans, the Justice Department told Congress in a document seen by Reuters.

Lawmakers and the Biden administration say TikTok poses enormous national security risks because the Chinese government could gain access to data from millions of American users.

The Justice Department gave a classified briefing to members of the House Energy and Commerce Committee on Thursday before the panel voted 50-0 on a bill to give ByteDance six months to divest short video app TikTok or face a U.S. ban.

The briefing included the one-page unclassified document seen by Reuters, which also said TikTok poses "key national security concerns" because it "collects tremendous amounts of sensitive data" and added Chinese ownership puts "TikTok's American users at risk."

The Justice Department document, titled "Threat Posed by TikTok," said any bill needs to separate the company from Beijing and its Chinese-based parent and that a divestment has key advantages over a ban.

Existing laws "have limits that make it challenging to effectuate that separation and fully address the national security risks," the Justice Department document said.

A prior attempt to ban TikTok by then President Donald Trump in late 2020 was blocked by the courts.

"An orderly divestment of TikTok from (China) would give Americans secure ownership of their data, including posts, photos and videos while minimizing the disruption to the over 100 million TikTok accounts in the United States," the document said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"Working through ByteDance, the PRC (People's Republic of China) could use TikTok to access data on millions of U.S. users and control the software on millions of U.S. devices," it added.

House Energy and Commerce Committee chair Cathy McMorris Rodgers cited the briefing as a key reason members supported the divestment bill.

Rodgers said the FBI, Justice Department and other agencies worked with the committee for months to provide assistance on a "targeted specific approach" to addressing concerns. Deputy Attorney General Lisa Monaco was directly involved in discussions with lawmakers, a source said.

TikTok, which says it has not and would not share U.S. user data with the Chinese government, said on Thursday the "legislation has a predetermined outcome: a total ban of TikTok in the United States."

Latest comments

limit the influence of tiktok on, and knowledge of, your child's mind and whereabouts.. yeah, that's a good idea that should be expanded...
get rid of free speech. Great idea
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.