Sale of TikTok to Oracle, Walmart has been ‘on hold indefinitely’, report says

A preliminary agreement to sell TikTok’s US operations software company Oracle and retail giant Walmart has been “shelved indefinitely,” according to a report by the Wall Street Journal on Wednesday. The hiatus would come as the Biden administration undertakes its own examination of the potential security risks posed by the collection of data from Chinese tech companies.

“We plan to develop a comprehensive approach to securing US data that addresses the full range of threats we face,” National Security Council spokeswoman Emily Horne told the Journal. “This includes the risk posed by Chinese applications and other software that work in the United States. In the coming months, we plan to examine specific cases in light of a comprehensive understanding of the risks we face.

TikTok was subject to regulatory review by federal agencies throughout 2020. In September, then Commerce Secretary Wilbur Ross repressed the application following two executive orders from then-President Donald Trump. Citing Chinese government access to US user data, Trump’s orders banned transactions with the Chinese-owned app and demanded the sale of TikTok to a US company. In December, a federal judge ruled against the ban.

“It is not correct to suggest that there is a further proactive White House step Biden” linked to TikTok, White House Press Secretary Jen Psaki said at a press briefing on Wednesday . She added that there is a “rigorous CFIUS process underway,” referring to the Committee on Foreign Investments in the United States, which reviews foreign acquisitions for potential national security risks. Psaki said the administration is assessing the “US data risks” of apps, including TikTok, and that there is no timeline for the review.

Most recently, TikTok came under scrutiny after a vulnerability left users private information exposed in January. The security vulnerability, discovered by Check Point researchers, was the second discovered in a month.

TikTok, Oracle and Walmart did not immediately respond to requests for comment.