The United States government has launched a national security review into a Chinese company's acquisition of TikTok, the popular social media platform, The New York Times reported.
According to the report, the Committee on Foreign Investment in the United States (CFIUS), which reviews foreign acquisitions of American companies, launched a review of deal made two-years ago by TikTok owner Beijing ByteDance Technology. The app, known as Musical.ly, was obtained by ByteDance Technology for $1 billion in 2017, and was rebranded last year as part of the company's popular short-form video content app, TikTok.
However, lawmakers have raised questions about the Chinese company's dealings and how it moderates political content and how it stores its user data. Sen. Marco Rubio (R-FL), called for an investigation into the company's acquisition last month writing that "Chinese-owned apps are increasingly being used to censor content and silence open discussion on topics deemed sensitive by the Chinese Government and Community Party."
Rubio's letter came amid reports that the social media platform had been censoring political content deemed offensive to the Chinese government.
The company denies the allegations against it, saying that its moderation decisions are based in the U.S. and are not based on any influence by a "foreign government."
According to the report, the company's acquisition of Musical.ly did not go through a review by CFIUS and are in talk about national security concerns now.
“While we cannot comment on ongoing regulatory processes, TikTok has made clear that we have no higher priority than earning the trust of users and regulators in the U.S. Part of that effort includes working with Congress and we are committed to doing so,” a TikTok spokesperson told Reuters.
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