- June 10, 2021
- Posted by: Stratford Team
- Category: Tech
President Joe Biden signed an executive order on Wednesday that sets criteria for the government to evaluate the risk of apps connected to foreign-adversaries, a move with implications for Chinese-owned apps like TikTok and WeChat.
Biden revoked and replaced the three executive orders by former President Donald Trump which sought to ban transactions with TikTok and WeChat by American businesses. One of the orders also sough to ban TikTok, resulting in a prolonged court battle. TikTok remains available and popular in the U.S.
Biden’s new order will direct the Commerce Department to review apps tied to foreign adversaries and lays out what it should consider an “unacceptable risk,” according to a White House fact sheet. That includes criteria for evaluating transactions with software apps tied to a foreign adversary, which typically falls under the Committee for Foreign Investment in the U.S. (CFIUS). The order would consider transactions to involve a “heightened risk” when they involve apps owned, controlled or managed by people supporting foreign adversary military or intelligence or when the apps collect sensitive personal data, for example.
The order also directs the Commerce Department to work with other agencies to come up with recommendations to protect U.S. consumer data from foreign adversaries. It requires the Commerce Department to recommend further executive actions and legislation to address the risks.
Under the previous administration, TikTok remained in a precarious position as Trump sought to ban the app unless it sold to an American company. The stand-off prompted Walmart and Microsoft to team up and court TikTok, though the company ultimately went with Oracle as its “trusted technology provider,” which fell far short of a full sale.
Biden’s ascendance to the White House threw a wrench in the deal and ongoing legal proceedings between TikTok and the government, however. In February, The Wall Street Journal reported that the Oracle deal has been “shelved indefinitely,” according to sources. The Biden administration had asked the court to postpone action around the government dispute with TikTok over the ban as it reviewed the situation.
Representatives for TikTok and WeChat owner Tencent did not immediately respond to a request for comment.
This story is developing. Check back for updates.