TikTok has accused the Biden administration of engaging in “political demagoguery” during negotiations regarding the company’s presence in the U.S. The letter submitted to a top official in the Justice Department’s national security division outlined details of discussions between TikTok and the Committee on Foreign Investment in the United States (CFIUS) from January 2021 to August 2022. TikTok claims that talks resulted in a 90-page draft security agreement that included requirements for more robust safeguards around U.S. user data and a “kill switch” that would allow CFIUS to suspend the platform for non-compliance.
However, TikTok’s attorneys stated that negotiations with CFIUS ceased in August 2022 after the company submitted the draft agreement. The Justice Department, on the other hand, defended the legislation enacted to address national security concerns related to the potential threat of autocratic nations using technology to weaponize against the U.S. The department emphasized the importance of safeguarding sensitive data from being turned over to foreign governments secretly.
Further meetings between TikTok and government officials, including the U.S. Treasury’s undersecretary for investment security, Paul Rosen, took place to address the government’s concerns. TikTok was informed that a solution would involve ByteDance divesting TikTok and migrating its source code out of China. TikTok’s lawsuit deems divestment as a technological impossibility due to the requirement of severing all operational ties between ByteDance and the U.S. app.
Following reports that CFIUS had threatened ByteDance to divest TikTok or face a ban, TikTok’s attorneys raised concerns about leaks to the media by government officials. Subsequent meetings focused on data safety measures and TikTok’s source code, with the last meeting with CFIUS occurring in September 2023. TikTok’s attorneys highlighted the need for constructive discussions with CFIUS, emphasizing the importance of following laws and regulations while engaging in good-faith negotiations.
The legal brief also mentioned a document allegedly provided by the Justice Department to members of Congress in March, a month before the passage of a federal bill requiring TikTok to be sold to an approved buyer or face a ban. The document accused TikTok of collecting sensitive data without alleging that the Chinese government has obtained such data. It also raised concerns about TikTok’s algorithm potentially allowing China to influence content on the platform, without alleging that this has occurred. TikTok’s attorneys argue that CFIUS negotiations should not be politicized for legislative purposes and must adhere to confidentiality and good-faith discussions.
