Amazon Is Being Questioned by the House Select Committee over Its Recent Deal with TikTok

Key Takeaways

• The House Select Committee on China has raised concerns over Amazon's latest e-commerce deal with TikTok.
• The Committee had called for a meeting with Amazon representatives where they were advised against the partnership.
• TikTok is being deemed a threat to national security and is on the verge of being banned in the US. So naturally, this partnership is not being received well by authorities.

Amazon's controversial partnership with TikTok amidst trouble between the US and China has invited questions from the House Select Committee on China.

In recent months, a few representatives from the company also met with the Committee members at Capitol Hill sometime in September to discuss the sudden increasing closeness between the two companies. This has been directly confirmed by a spokesperson from the committee.

What Does the Committee Have to Say About This Deal?

The Committee has told Amazon that this is a dangerous deal and it's unwise for the company to partner up with TikTok as it poses a severe threat to the country's national security.

This isn't the first time that TikTok has been accused of being a threat to the US. The company has been under fire for months. In March 2024, US lawmakers presented a new bill that would force TikTok to either cut ties with its parent company Bytedance, or risk getting banned in the US.

The reason behind such a bill is that the tension between the US and China has been growing unchecked for the past many months. This has led US lawmakers to believe that China might leverage its influence on apps like TikTok to spy on US citizens.

Although TikTok has assured time and again that it never transferred any US citizen data to Chinese authorities, US authorities didn't budge. At last, TikTok has decided to legally challenge this bill - the battle is still underway.

Like many other US companies, we maintain open lines of communication with officials across all levels of government to discuss issues that are of interest to policymakers, our employees, and our customers. - Amazon

About the Deal Between Amazon & TikTok

The deal was announced in August which allows TikTok users to shop Amazon products without leaving the TikTok platform. This will be executed in three ways:

• Users will be able to link their Amazon accounts with their TikTok profiles so they can check the pricing of the products in real time.
• Clickable shopping ads from Amazon will be posted on the For You" page.
• Amazon will post product suggestions on the For You" page with clickable links.

This partnership is a win-win situation for both companies. Amazon gets to tap into TikTok's massive GenZ user base while TikTok gets to gain more credibility and firmly plant its feet in the US amidst the rising pressure of a possible ban.

However, it's hard to say whether business expansion is the only motive for this deal. Amazon has been a top advertiser on TikTok US for many years, but some industry experts believe that the main motive for this deal is to make it harder for the authorities to ban TikTok.

If that is the case, Amazon isn't the only one. The NFL, music distribution platform UnitedMasters, social shopping tool LTK, and sports and venue management company Monumental Sports & Entertainment have also signed deals with TikTok.

Again, no one said outright that they don't believe TikTok will be banned. However, since Donald Trump won the recent elections and is also against this ban, things might actually go in TikTok's favor.

The post Amazon Is Being Questioned by the House Select Committee over Its Recent Deal with TikTok appeared first on Techreport.