The popular social media app TikTok has been making headlines recently, and not just for its viral dance challenges and lip-sync videos. The app’s parent company, ByteDance, has been facing scrutiny from the US government over concerns about national security and data privacy. This has led to a last-minute halt of the Pico 4 US launch, according to reports.
The Pico 4 is a virtual reality headset developed by Pico Interactive, a Chinese company that has ties to ByteDance. The device was set to launch in the US market on October 26th, but the launch was reportedly postponed due to concerns raised by the Committee on Foreign Investment in the United States (CFIUS).
CFIUS is a government agency that reviews foreign investments in US companies for potential national security risks. In recent years, the agency has been increasingly focused on Chinese companies, particularly those with ties to the Chinese government. ByteDance’s ownership of TikTok has put it under CFIUS’s microscope, and the agency has reportedly been investigating the company’s data privacy practices.
The Pico 4’s connection to ByteDance appears to have been enough to raise red flags for CFIUS. According to reports, the agency was concerned that the device could be used to collect sensitive data from US users and potentially share it with the Chinese government.
It’s worth noting that Pico Interactive has stated that it operates independently from ByteDance and that the Pico 4 does not collect any user data. However, CFIUS’s concerns highlight the broader tensions between the US and China over technology and data privacy.
The TikTok hearing that reportedly led to the Pico 4’s delay was held on October 28th. During the hearing, TikTok executives faced tough questions from US senators about the app’s data privacy practices and its ties to China. The executives reiterated that TikTok operates independently from ByteDance and that user data is stored in the US and Singapore, not China.
Despite these assurances, TikTok’s future in the US remains uncertain. The Trump administration has threatened to ban the app outright, citing concerns about national security. A deal that would see Oracle and Walmart take a stake in a new US-based company called TikTok Global has been proposed, but it’s unclear if this will satisfy the administration’s concerns.
The Pico 4’s delayed launch is just the latest example of how the US-China tech war is playing out in the marketplace. As tensions continue to rise, companies with ties to China are likely to face increased scrutiny and potential roadblocks in their efforts to expand into the US market. For consumers, this could mean fewer options for innovative new products and services. For companies, it means navigating a complex and rapidly changing regulatory landscape.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- Source: Plato Data Intelligence: PlatoData