President Biden Administration as expected has officially declared that it will not be forcing TikTok to sell its company into the US ownership, therefore discarding a push from the Trump administration that approved the sale of TikTok to an Oracle/Walmart group.
A U.S. plan to force the sale of TikTok’s American operations to a group including Oracle and Walmart has been shelved indefinitely, people familiar with the situation said, as President Biden undertakes a broad review of his predecessor’s efforts to address potential security risks from Chinese tech companies.
TikTok is likely to expand its US operations, and capitalize on its rising popularity in the region. But TikTok is not completely out of the woods just yet.
We plan to develop a comprehensive approach to securing U.S. data that addresses the full range of threats we face. This includes the risk posed by Chinese apps and other software that operate in the U.S. In the coming months, we expect to review specific cases in light of a comprehensive understanding of the risks we face.
This does not mean that TikTok will be facing the same level of scrutiny once again but the review process may find that TikTok still contains huge risk, which therefore has been observed by several cybersecurity analysts in the past. TikTok may go through some restrictions or need to make some changes if the US Government believes that the app is still a problem. After all the debate, negotiations between companies, and the legal challenges, TikTok sell-off comes to nothing.