Beijing-based ByteDance Technology Co., the company that acquired video-sharing app TikTok, is ramping up efforts to separate its app from much of its Chinese operations amid a probe by the Committee on Foreign Investment in the United States (CFIUS).
Unnamed sources told Reuters that ByteDance is trying to provide assurances to the committee that the personal data held by TikTok is stored securely in the United States and will not be compromised by the Chinese communist regime. The app is massively popular in the United States, especially among youth.
The committee is investigating ByteDance’s $1 billion acquisition of social media app Musical.ly in 2017, which laid the foundation for TikTok’s rapid growth. In the first quarter of this year, TikTok was the most downloaded application worldwide on the App Store, according to research firm Sensor Tower.
ByteDance started to separate TikTok operationally before CFIUS approached it in October because it wanted some of its staff to focus on TikTok, the sources told Reuters.
It completed the separation of TikTok’s product and business development, marketing, and legal teams from those of its Chinese social media app, Douyin, in the third quarter of this year. During the summer, it also hired an external consultant to carry out audits on the integrity of the personal data it stores, the sources said.
The company has previously said U.S. user data is stored entirely in the United States, with a backup in Singapore. It has also said that the Chinese regime does not have any jurisdiction over TikTok content.
TikTok is also hiring more U.S. engineers to reduce its reliance on staff in China, according to the sources. It is not clear how effective these changes will be in appeasing CFIUS.