TikTok has dismissed a Federal Communications Commission (FCC) representative’s demand that the US should ban the app as social media deals continue to plummet.
Republican FCC commissioner Brendan Carr believes the US should ban TikTok. The app is owned by Chinese parent company ByteDance. Carr is one of four commissioners at the Democrat-led agency.
Go deeper with GlobalData
The Committee on Foreign Investment in the US (CFIUS) in the Treasury Department is currently reviewing if TikTok’s national security implications, given ByteDance is China-owned.
“I don’t believe there is a path forward for anything other than a ban,” Carr told Axios.
However, TikTok has so far seemed reasonably bullish about its future in the US, seemingly brushing off Carr’s demands.
“Commissioner Carr has no role in the confidential discussions with the U.S. government related to TikTok and appears to be expressing views independent of his role as an FCC commissioner,” a TikTok spokesperson said in a statement seen by CNBC.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIt is also worth noting that Carr’s comments does not necessarily signal any pending actions against TikTok.
After the FCC commissioner made his TikTok demand, there was a consequential rise in other social media app shares. Meta shares rose by 2.2% whilst Snap shares rose 3.4% on Tuesday, CNBC reported.
TikTok have become a birpartisan issue, with both the Trump and Biden administrations having expressed concerns about the company’s close ties with Beijing.
Carr’s comments comes as tensions between the US and China are on the rise.
FCC rep’s TikTok comments come as social media deals fall
The news about the FCC representative’s comments about TikTok comes as venture capital (VC) deals have tumbled in 2022.
In 2021, social media companies secured 301 VC deals worth a total of $10.7bn.
So far, the 2022 market has only seen 217 deals, worth a combined $3.4bn. It represents a substantial decrease of over a $7bn in the value of social media related deals, compared to last year.
This could be due to a number of factors such as the Covid-19 pandemic and controversies with social media content, policies and ownership.
