Zoom faces US security review of US$14.7 billion deal for Five9 over China ties
- Review comes as influential proxy voting adviser recommended against Five9 deal over political risks associated with Zoom’s ‘substantial operations in China’
- Justice Department review adds additional regulatory layer to an inquiry already being conducted by the FCC
In its letter to the Federal Communications Commission (FCC), the Justice Department did not directly reference the videoconferencing company’s China operations, but said an inter-agency committee that reviews foreign participation in the US telecommunications sector should review potential risk raised by “foreign relationships and ownership” associated with the deal and determine whether it poses a threat to “national security or law enforcement interests”.
The review by the Committee for the Assessment of Foreign Participation in the United States Telecommunication Service Sector adds an additional regulatory layer to an inquiry already being conducted by the FCC.
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