Responding to the latest ban threat in the US, TikTok spokesperson Brooke Oberwetter told Reuters that “a change in ownership would not impose any new restrictions on data flows or access.” China’s Foreign Ministry, on the other hand, says the US government has yet to furnish any credible evidence that TikTok poses national security risks. Coming to the divestment part, parent company ByteDance says 60% of its shares belong to foreign business entities, 20% are held by employees, while the rest is owned by the founders. However, despite the smaller share, the founders enjoy a disproportionately stronger say when it comes to voting rights regarding important decisions and policies.
TikTok says it has already set aside $1.5 billion to bolster the security measures for its US user base, ensuring that user data is not stored or accessed outside the country’s borders. The social media company, which has over 110 million users as of 2023 according to Statista estimates, says the best way forward is to collaboratively tighten security measures, boost transparency, and implement more stringent vetting and external monitoring checkpoints. However, going forward with an actual ban won’t be easy from a legal perspective, according to experts, thanks to protective framework for foreign business enshrined in the US laws. About a year ago, it was reported that the Department of Homeland Security was actively investigating TikTok over concerns about CSAM (Child Sexual Abuse Material) sharing.
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