Zoom merger with Five9 scrutinized over ties to China • The Register

Zoom’s ties to China are at the center of a US government investigation into the video-conferencing giant’s $15bn plan to take over Five9, a California call-center-in-the-cloud.

The snappily titled Committee for the Assessment of Foreign Participation in the United States Telecommunications Service Sector – known as Team Telecom under a previous president – is right now probing the planned acquisition. This interagency panel is chaired by Attorney General Merrick Garland, and has reps from the Pentagon and Homeland Security.

The FCC was reviewing an application [PDF] by Zoom and Five9 as part of the takeover bid until the regulator was asked by Justice Department official David Plotinsky to hold off until the committee had finished scrutinizing the overall deal.

In a letter dated August 27, and spotted this week on the FCC website by the WSJ, Plotinsky told the FCC that the committee is considering whether the acquisition of Five9 poses “a risk to the national security or law enforcement interests of the United States.”

The Dept of Justice “believes that such risk may be raised by the foreign participation (including the foreign relationships and ownership) associated with the application,” he continued, “and a review by the committee is necessary to assess and make an appropriate recommendation as to how the [FCC] should adjudicate this application.”

woman clicks the wrong thing on laptop, covers mouth from shock

Zoom incompatible with GDPR, claims data protection watchdog for the German city of Hamburg


By foreign relationships and ownership, officials are referring to Zoom’s links with Beijing. Not only was its encryption not that strong nor end-to-end, it also was spotted routing connections through China. Zoom promised to beef up its security, especially so when Uncle Sam found the vid-chat giant fell short of those promises.

Zoom also closed the paid-for account of US-based Chinese activists after they held an international Zoom meeting marking the 31st…