Watchdog Supports Sale of TikTok as Alternative to Ban

For Immediate Release
August 3, 2020
Contact: Grace Morgan
(202-855-4380)

WASHINGTON, D.C. –  Today, the Taxpayers Protection Alliance (TPA) commended President Trump for appearing to reverse course and support a private acquisition of digital platform TikTok. The President had previously announced that he planned on banning the platform in the U.S. due to concerns that TikTok owner ByteDance is cooperating closely with the Chinese government. According to media reports, prospective purchaser Microsoft has 45 days to solidify a deal with stipulations surrounding data security and Chinese government involvement in the social media app. TikTok is a widely used app, with more than 175 million downloads in the United States alone.

TPA President David Williams voiced support for the tentative deal, noting, “in last week’s antitrust hearing with ‘Big Tech’ CEOs, the leaders of the tech world made the compelling case that markets – not bureaucrats – must lead the digital domain. And, if President Trump’s openness to TikTok’s acquisition is any indication, elected officials are taking this lesson to heart. TikTok has provided a platform for millions of consumers in the U.S. and can continue to do so with this planned purchase. This acquisition would benefit millions of consumers and provide a far better alternative than a ban by executive fiat.”

Williams continued: “In the lead up to President Trump’s recent phone call with Microsoft CEO Satya Nadella, the President was reasonably concerned that TikTok’s continued operation in the U.S. posed potential dangers to privacy and data security. Allowing this sale to go through would alleviate these concerns and take the Chinese government out of the equation. Microsoft has taken commendable steps to safeguard consumer data and has even banned the police from using its facial recognition technology. If this deal is successful, consumers across the country can rest easy knowing that their data is not being sold to and used by government agencies in the U.S. or abroad.”

Williams concluded: “While President Trump should be applauded for considering this deal, his administration must refrain from attaching onerous conditions to the acquisition. The President recently implied that the deal will not be approved unless the Treasury obtains a ‘very substantial portion’ of revenue. Tethering an onerous tax to the deal could deter Microsoft from acquiring TikTok, which in turn would result in President Trump banning the platform. This misguided policy would hamper competition in the tech sector and destroy a platform that millions of Americans regularly use. The President should allow this deal to go forward without delay or onerous taxation. American consumers deserve choice and competition across the digital domain.”

#