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ARTICLE · 21 NOVEMBER 2019

TikTok Facing CFIUS Scrutiny

According to news articles, the Committee on Foreign Investment in the United States (CFIUS) is reviewing the two-year-old acquisition of Musical.ly, ...

United StatesGovernment, Public Sector

According to news articles, the Committee on Foreign Investment in the United States (CFIUS) is reviewing the two-year-old acquisition of Musical.ly, now part of TikTok, over national security concerns regarding China’s access to sensitive personal data of the app’s users.1  An additional concern raised by Senator Marco Rubio is the Chinese Government’s potential censorship of content on the TikTok platform that is “not in line with the Chinese Government and Communist Party directives.”2  Review of this transaction could potentially lead to a forced divestiture of TikTok.  It is the latest in a list of Chinese acquisitions of software apps that have been reviewed by CFIUS more than a year post-closing.

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