China and US flags are seen near a TikTok logo in this illustration picture taken July 16, 2020.
To avoid a ban, ByteDance has entered talks with Microsoft to purchase the app, which would include operations in the US, Canada, Australia and New Zealand. His move against the video-sharing app is part of a broader crackdown against Chinese companies, including telecom providers Huawei and ZTE. "This new structure would build on the experience TikTok users now love, while adding world-class security, privacy, and digital safety protections", Microsoft said.
"We have always been committed to ensuring user data security, as well as the platform neutrality and transparency", he said. "Those - those are the issues that President Trump has made clear we're going to take care of", Pompeo said. Microsoft also didn't disclose a likely price for the deal.
ByteDance in Beijing did not respond to a request for comment.
But sources quoted by global media said ByteDance would exit completely and Microsoft Corp would take over TikTok in the US.
Tech giants will pay for Aussie news
Penalties up to ten million dollars will be included if the companies are found with any form of breaches in code. For now, Google and Facebook are the only tech companies that would be subject to the new regulation.
President Trump may not ban the Chinese social media app TikTok if an American company acquires it.
TikTok has been the subject of intense worldwide scrutiny as of late, with various governments accusing the video sharing app of sharing users' data with the Chinese government. The Committee on Foreign Investment in the United States, or CFIUS, which which investigates overseas acquisitions of US businesses, past year opened a review of the Musical.ly purchase. During a meeting with tech workers Monday, the president said he will not make a decision on whether to ban the app just yet.
Initial reports claimed that Microsoft had first only focused on acquiring TikTok's smaller business in the U.S. However, it is now being reported that Microsoft could be planning to scale the entire company. The Satya Nadella-headed company is in talks with ByteDance to buy TikTok. Win-win. Keeps competition alive and data out of the hands of the Chinese Communist Party'. "With respect to Chinese apps on peoples' cellphones, the United States will get this one right too". It hired its first American CEO in June, former Walt Disney executive Kevin Mayer, hired dozens of D.C. lobbyists, and said it would consider a new global headquarters and other organizational changes to satisfy US authorities.
Filling the U.S. Treasury's coffers isn't usually at the forefront of companies' minds when negotiating acquisitions, but it seems to be a bit different when the president sticks his nose in.
State-backed newspaper China Daily on Monday called ByteDance the victim of a "witch hunt" from the United States, and said Washington had not provided evidence to support its allegation that TikTok posed a threat to USA national security. It bought Musical.ly, a video service popular with teens in the US and Europe, and combined the two. The time lapse will ostensibly serve as a transition period for Microsoft to develop technology for TikTok that will be completely separate from ByteDance, one of the sources said.
The IT group owns the professional networking platform LinkedIn, and Teams, an internal messaging service for companies. Microsoft's market capitalization is approximately $1.55 trillion.