2025 U.S. Government Pushes ByteDance to Sell TikTok Stake Amid Security Concerns

The U.S. government is intensifying pressure on ByteDance, TikTok's Chinese parent company, to sell its stake in the popular social media app or risk facing a ban within the United States.

Key Highlights

• The U.S. authorities have formally requested ByteDance to divest its ownership in TikTok to mitigate national security concerns.
• This development follows TikTok's recent announcement considering a separation from ByteDance amid increasing security scrutiny.
• A potential TikTok ban could significantly benefit U.S.-based social media platforms as users seek alternatives.

This move comes shortly after TikTok revealed it was exploring a corporate split from ByteDance due to mounting national security pressures. TikTok spokesperson Brooke Oberwetter confirmed that the U.S. Committee on Foreign Investment in the United States (CFIUS) had approached the company regarding this issue.

CFIUS, operating under the Treasury Department, evaluates foreign investments for potential risks to U.S. national security. In September 2022, President Biden expanded CFIUS's authority through Executive Order 14083 to address emerging threats from foreign technology entities.

The recent discovery of a Chinese surveillance balloon over U.S. territory has further fueled efforts to regulate TikTok. The app has been a contentious topic in the U.S. for several years due to data privacy concerns.

Former President Trump attempted to ban TikTok in 2020 following a report by the Peterson Institute for International Economics, which labeled TikTok a "Huawei-sized problem." The U.S. government also sought to transfer TikTok's American operations to a new entity controlled by Oracle and Walmart.

In response, TikTok has taken steps to alleviate concerns by migrating all U.S. user data to Oracle’s cloud infrastructure and granting Oracle access to review portions of its code and systems.

However, TikTok's Oberwetter emphasized, "Divestment alone does not address national security objectives, as a change in ownership would not inherently restrict data access or flows."

A ban on TikTok could lead to increased market share for competitors like Meta Platforms and Snap Inc., both of which offer popular short-form video services.

According to Insider Intelligence, TikTok is projected to reach approximately 835 million monthly global users by the end of 2023, ranking it as the third-largest social media platform worldwide. This user base is expected to grow to nearly 955 million by 2025.

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