Due to a national security threat, the Biden administration wants TikTok to be separated from its parent company, China's ByteDance.
The White House announced that federal agencies would have 30 days to remove TikTok from government computers, and restrictions similar to those have been applied in dozens of US states. However, the new measure, which was introduced in early March, would generally give the Commerce Department the authority to ban foreign companies from operating in the United States if there are national security concerns.
The phrase "TikTok" isn't directly mentioned in the text, but it applies to businesses from unfriendly countries, including China, Cuba, Iran, North Korea, Russia, and Venezuela.
TikTok has stated that user data is not stored in China and has proposed a deal with the US government, which might be a spin-off from ByteDance. In December, the Wall Street Journal reported that discussions between TikTok and Washington had been stalled, and the future of the transaction was hazy.
According to Bloomberg Intelligence analysts Mandeep Singh and Damian Reimertz, TikTok's US business might be valued at $40-50 billion.
TikTok is prepared to report on its work and relationship with the Chinese government, and Show CEO Zi Chu will testify before a congressional committee next week.
TikTok was banned from government devices in Canada earlier this year, claiming it was a "unacceptable" level of privacy and security danger. Employees must remove TikTok from their phones by March 15.