Unusual TikTok Review Calls CFIUS Processes Into Question

Law360 (August 7, 2020, 6:56 PM EDT) -- Initial press reports last November[1] that the Committee on Foreign Investment in the United States had commenced a review of ByteDance Ltd.'s acquisition of Musical.ly, the service that was merged into ByteDance's video-sharing site TikTok and helped fuel its expansion, were not particularly surprising to those familiar with CFIUS and its concerns.

However, recent departures from established CFIUS processes in the TikTok matter are striking and concerning for persons engaging in cross-border transactions involving the U.S., calling into question the scope, apolitical nature, confidentiality and security focus of the CFIUS process.

CFIUS' concerns regarding the protection of personal information of U.S....

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