♠ Posted by Emmanuel in
Americana,
China,
Security
at 3/27/2019 04:07:00 PM
 |
| Fat, old guys like Trump and Xi need not apply on Grindr, but their geopolitics still shape the app's governance. |
Never let it be said that American protectionism was always staid. As it turns out, the Committee On Foreign Investment in the United States (CFIUS) is now forcing the
divestment of the gay dating app Grindr by its Chinese owners who bought the service in 2016. It may sound strange, but it's true: gay bureaucrats on Grindr appear to be a security concern since they may disclose too much about their employment to boys they meet [
hunky PRC spy guys, mayhaps?] in this Chinese-owned digital playground:
Chinese gaming company Beijing Kunlun Tech Co Ltd is seeking to sell
Grindr LLC, the popular gay dating app it has owned since 2016, after a
U.S. government national security panel raised concerns about its
ownership, according to people familiar with the matter.
The Committee on Foreign Investment in the United States (CFIUS) has
informed Kunlun that its ownership of West Hollywood, California-based
Grindr constitutes a national security risk, the two sources said.
CFIUS’
specific concerns and whether any attempt was made to mitigate them
could not be learned. The United States has been increasingly
scrutinizing app developers over the safety of personal data they
handle, especially if some of it involves U.S. military or intelligence
personnel.
Kunlun had said last August it was preparing for an
initial public offering (IPO) of Grindr. As a result of CFIUS’
intervention, Kunlun has now shifted its focus to an auction process to
sell Grindr outright, given that the IPO would have kept Grindr under
Kunlun’s control for a longer period of time, the sources said.
The grounds for the CFIUS forcing divestment are unknown, but we can pretty much guess the general rationales based on other FDI transactions involving the Chinese and personal data that have been proscribed:
CFIUS’ intervention in the Grindr deal underscores its focus on the
safety of personal data, after it blocked the acquisitions of U.S. money
transfer company MoneyGram International Inc and mobile marketing firm
AppLovin by Chinese bidders in the last two years.
CFIUS does not always reveal the reasons it chooses to block a deal to
the companies involved, as doing so could potentially reveal classified
conclusions by U.S. agencies, said Jason Waite, a partner at law firm
Alston & Bird LLP focusing on the regulatory aspects of
international trade and investment.
My belief is that it's the most pathetic American excuse for protectionism yet, but your mileage may vary.
