ANNOUNCEMENT 27 Mar 2019

The Committee on Foreign Investment in the United States reportedly obliged Beijing Kunlun Tech Co Ltd. to divest itself of Grindr, a firm providing match-making services for a gay clientele.

 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 27 Mar 2019 | Removal date: open ended

FDI: Entry and ownership rule

On March 27, 2019 multiple press outlets reported that the Committee on Foreign Investment in the United States (CFIUS) obliged Beijing Kunlun Tech Co Ltd. to divest itself of Grindr, a firm providing match-making services for a gay clientele. CFIUS “has informed Kunlun that its ownership of West Hollywood, California-based Grindr constitutes a national security risk,” according to sources quoted in the press. Kunlun had purchased Grindr in 2018. As is often the case for CFIUS determinations, no formal documents are publicly available on this decision. It may nevertheless be surmised that the action was taken out of concerns that the sensitive and personal information that users provide when using this app -- as well as the messages that they send to one another -- could be used to compromise persons who prefer that their activities remain private, and that the ownership of this service by a Chinese company might facilitate access to this data by Chinese government agencies.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A