Negotiations TikTok further under pressure by ban Trump

Microsoft confirmed early this week that there are talks about a takeover. Yesterday, the Financial Times reported based on sources that, contrary to what the software maker himself said earlier, the company is looking to take over TikTok’s activities worldwide.

U.S. user data

Trump sees TikTok as a security risk, the fear is that the Chinese government can access data from American users via ByteDance. The company denies this. The president further warns in the order that the app can be used for disinformation campaigns of the Chinese Communist Party. Therefore, the U.S. must “take aggressive measures against the owners of TikTok to protect our national security”, said the president.

In the Netherlands, the Personal Data Authority researches the app, focusing on the question whether TikTok is “designed and set up in a privacy friendly way”. TikTok yesterday announced to invest 420 million euros in a data centre in Ireland; the data of European users will be stored here when the location is operational, early 2022.

In a reaction, TikTok announces that it is shocked by the decree. “The government pays no attention to facts, dictates conditions for an agreement without a legal process and interferes in negotiations between private parties.” In so doing, the company is also referring to the way Trump is interfering in the takeover talks between the video app and Microsoft.

Besides TikTok, the U.S. government is now also targeting WeChat with a similar decree; this too will take effect in 45 days’ time. Trump says that this app “automatically captures enormous amounts of information of its users”. According to him, this would give the Chinese Communist Party access to personal information of Americans.

In contrast to video app TikTok, this app is not enormously popular in the US. However, it is a very important service in China. It’s basically a chat app, but in the app users can use so-called ‘mini-programs’ much more. For example, it is possible to take out insurance, make reservations and pay.

WeChat’s parent company, Tencent, went down 10 percent after the news on the Hong Kong stock exchange. Losses were then made up somewhat, but were still in the min.

Evaluable for contact

The app is also important for contact between people and companies in the US and China. The analysis of American newspapers is therefore that the potential impact of this decree may be greater than the measure against TikTok. There is a chance that the video app will have a deal with an American company at the time of the September deadline, with Microsoft as the most likely option at the moment. This does not apply to WeChat.

CCeit Stories made a video about TikTok and found out what is known about the algorithm.