TikTok has denied claims that it is forcing Erich Andersen, the company's US counsel tasked with addressing national security concerns related to its relationship with China, into action.
This happens like Protect Americans from the Foreign Adversary Controlled Apps Actalso known as the divestment or ban law targeting TikTok, is gaining attention in the US.
Bloomberg News reported On Saturday (April 20), TikTok planned to remove Andersen from his role leading negotiations with the US government. These talks aim to demonstrate that the app protects American users' data and content recommendations from Chinese influence.
However, these efforts reportedly failed to assuage the concerns of a US government panel conducting a security review and lawmakers proposing forced divestment.
The House of Representatives recently passed a bill requiring the sale of TikTok from its Chinese parent company, ByteDanceor face a ban in US app stores. Bloomberg said Andersen was expected to leave his current position but the company denied this.
“That is 100% false,” said a TikTok spokesperson. Alex Haurek when asked by Bloomberg about the possibility of Andersen being eliminated.
Andersen remains at TikTok for the time being, the news outlet said, citing one of its sources.
However, a report in Information Other suggestions. It claim Andersen sent an internal email expressing his plans to resign as general counsel. He emphasized that the decision was his own initiative and that discussions about his departure began “months ago.”
Andersen assured colleagues that he would stay at the company until “we can rest assured that there will be no loss of focus and attention,” after which he would serve as a consultant .
Andersen joined TikTok in 2020, moving from Microsoft Corporation where he served as corporate vice president and chief intellectual property counsel.
This news emerged as the divestment or ban law approach law enforcement. The Senate is poised to pass the bill next week, with President Joe Biden confirm his intention to sign it, could potentially force the sale of TikTok within a year.
If passed into law, ByteDance would have 165 days to sell its shares in TikTok; otherwise it will be banned from app stores in the US.
Angelo Zinovice president and senior equity analyst at CFRA Research, speak CNBC last month based on market comparisons, TikTok's US operations “could achieve a valuation of up to $60 billion” when “considering peer-to-peer market valuations.”
“That said, we don't even know if it will get to that point because ByteDance could decide to ask TikTok to stop doing business in the US if forced to do so,” Zino said.
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