"Biden Administration Pursuing Tiktok Over Data Practices; A Privacy Case Against TikTok Would Add Fuel To The Bipartisan Chorus Of Criticism Directed At The Company Over Its Ties To China" - Politico
Portfolio Pulse from Benzinga Newsdesk
The Biden Administration, through the FTC, is considering legal action against TikTok over privacy and data security concerns, including allegations of misleading users about data access by individuals in China and violating children's privacy laws. This comes amid bipartisan criticism of TikTok's ties to China and national security concerns. The FTC's investigation could lead to a lawsuit or settlement, with potential financial penalties. This situation adds to the ongoing scrutiny TikTok faces globally, including previous settlements and investigations in Europe and Canada.
March 26, 2024 | 8:32 pm
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The Biden Administration's potential legal action against TikTok, a company with strong ties to China, could exacerbate tensions between the U.S. and China, potentially impacting Chinese companies and the overall market sentiment towards Chinese investments, as represented by FXI.
Given TikTok's connection to China through ByteDance, increased regulatory actions from the U.S. could lead to negative sentiment towards Chinese companies and investments. FXI, which tracks large-cap Chinese stocks, could see short-term negative impact due to heightened geopolitical tensions and potential retaliatory measures.
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