This archive report was first published on 3 August 2020.
US President Donald Trump's threat to ban TikTok, a popular video-sharing app, has prompted Microsoft to move forward with talks to acquire the app from its Chinese owner, ByteDance.
According to a statement released by Microsoft, the company is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the US Treasury.
Reports emerged on Friday that Microsoft was in talks to purchase TikTok, which has been at the center of a controversy over its connection to China and potential security concerns.
Trump's administration has been critical of TikTok, citing concerns over its handling of user data and its ties to China. However, a spokesperson for TikTok has denied allegations of sharing user information with Beijing.
“TikTok US user data is stored in the US, with strict controls on employee access. TikTok’s biggest investors come from the US. We are committed to protecting our users’ privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform,” the spokesperson said.
Microsoft has stated that it will move quickly to pursue discussions with ByteDance and aims to complete the talks by September 15. However, the company noted that the discussions are preliminary and there is no assurance that a transaction will proceed.
As discussions move forward, Microsoft plans to continue a dialogue with the US government, including Trump, to address the security concerns surrounding TikTok.
Microsoft has also outlined its plans to build on the experience that TikTok users currently love, while adding world-class security, privacy, and digital safety protections.
“Among other measures, Microsoft would ensure that all private data of TikTok’s American users is transferred to and remains in the United States. To the extent that any such data is currently stored or backed-up outside the United States, Microsoft would ensure that this data is deleted from servers outside the country after it is transferred,” Microsoft said in its statement.
Microsoft has stated that it does not plan to provide further updates until there is a definitive outcome to the discussion.
