The goal is to keep adversaries like China and Russia from
gaining access to large amounts of personal and proprietary business
information.
The US Department of Commerce may issue subpoenas to collect
information about certain smartphone, tablet and desktop computer software
applications. Then, the agency may either negotiate conditions for their use in
the United States or ban the apps, according to people familiar with the
matter.
Biden’s June 9 order replaced President Donald Trump’s 2020
bans against the popular Chinese applications WeChat, owned by Tencent Holdings
Co, and ByteDance Ltd’s TikTok. US courts halted those bans.
US officials share many of the concerns Trump cited in his
order banning TikTok, according to one person familiar with the matter. Notably,
they fear that China could track the locations of US government employees,
build dossiers of personal information for blackmail and conduct corporate
espionage.
The new order could end up capturing more apps than the
final Trump orders because of a stronger legal framework. Reuters is the first
to report details on how the Biden administration plans to implement the order,
including seeking support from other countries.
US officials have begun speaking with allies about adopting
a similar approach, one source said. The hope is that partner countries will
agree on apps that should be banned.
US Commerce Secretary Gina Raimondo will decide which apps
to target for US action, but they must meet certain criteria. For instance,
they must be owned, controlled or managed by a person or entity that supports
the military or intelligence activities of a foreign adversary such as China or
Russia.
WeChat, TikTok
If Raimondo decides an app poses an unacceptable risk, she
“has the discretion to notify the parties” directly or publish the information
in the government’s official daily publication, the Federal Register, a
Commerce Department spokesman said.
Companies will then have 30 days to object or propose
measures to secure data better, the Commerce spokesman said.
Apps from China are most likely to find themselves in the
Commerce Department’s crosshairs given escalating tensions between Washington
and Beijing, the Chinese government’s ability to exert control over companies
and the number of Chinese apps used by Americans.
WeChat, TikTok and eight other apps targeted by the Trump
administration in its last months are eligible for review by Biden’s team, one
source said.
The Trump targets also included Ant Group’s Alipay mobile
payment app, WeChat Pay, Tencent Holdings Ltd’s QQ Wallet, Tencent QQ,
CamScanner, SHAREit, VMate published by Alibaba Group subsidiary UCWeb and
Beijing Kingsoft Office Software’s WPS Office.
Some of the apps named by Trump have serious data protection
issues, while it is unclear why others pose a heightened risk to national
security, according to another person familiar with the matter.
The order will apply to business apps, including those used
in banking and telecommunications, as well as consumer, the first source said.
Meanwhile, apps linked to other US adversaries, such as Iran
or Venezuela, are already blocked under broader sanctions.