Meta And Snap Shares Turn Bullish After FCC Comment About Banning TikTok
FCC recently shared its opinion, which stated that the US government should consider banning TikTok. As a result, the stocks of US-based social media companies such as Meta and Snap trended higher.
The commissioner said that the only visible path ahead is a ban and nothing else. Due to these comments, Meta shares increased by 2.2%, while Snap shares recorded an increase of 3.4%.
However, the thing to note here is that the comments passed by Commissioner Car are nothing but mere commentary. Right now, there are 4 commissioners at the FCC, and one of them is Car, who has spoken about taking action against the social app TikTok.
But this doesn't mean that TikTok has nothing to worry about regarding its presence in the USA. CFIUS, which oversees foreign investment on US soil, is already reviewing the security implications of TikTok. It seems that the root of the problem is the Chinese company's ownership of TikTok, which is raising security concerns among US officials.
However, the concerns related to the security risks of TikTok are bipartisan, as both current and previous administrations expressed concerns about the Chinese ownership of TikTok.
Data Of US Users Stored Outside China
On the other hand, TikTok claims that the data of US users are not stored in China, and as such, the social media company doesn't have to give that data to the Chinese government. But despite the efforts made by ByteDance, the scepticism by the US officials still remains.
Furthermore, the comments passed by the FCC commissioner will have no role in the US government discussions related to TikTok. But this doesn't mean that TikTok has been given a free hand... Given the popularity of TikTok among young users and the decline of Facebook (a US-based social media platform), these factors could play a role too, but the US authorities would not accept it so openly.
So for now, the fate of TikTok in the USA still remains to be seen, and we all know that people can still access TikTok through VPNs even if it gets banned.