Early last year, Grindr LLC's Chinese owner gave some Beijing-based enginee...
- Early last year, Grindr LLC’s Chinese owner gave some Beijing-based engineers access to personal information of millions of Americans such as private messages and HIV status, according to eight former employees, prompting U.S. officials to ask it to sell the dating app for the gay community.
Reuters found no evidence that the app’s database was misused. Nevertheless, the decision to give its engineers in Beijing access to Grindr’s database proved to be a misstep for Kunlun, one of the largest Chinese mobile gaming companies. A Grindr spokeswoman said “the privacy and security of our users’ personal data is and always will be a top priority.”Two former national security officials said the acquisition heightened U.S. fears about the potential of data misuse at a time of tense China-U.S. relations. CFIUS has increased its focus on safety of personal data. In the last two years, it blocked Chinese companies from buying money transfer company MoneyGram International Inc and mobile marketing firm AppLovin.
“The Chinese government always encourages Chinese companies to conduct economic and trade cooperation overseas in accordance with international rules and local laws,” it said.Kunlun first acquired 60% of Grindr in 2016 for $93 million, amid a wave of acquisitions of U.S. technology companies by Chinese firms. At the time CFIUS focused on traditional national security concerns, such as the use of technology for potential military applications, the former U.S. security officials said.
Kunlun shifted a significant portion of Grindr’s operations to Beijing, seven former employees said. Some outside contractors ended their work, and most of Grindr’s U.S. engineers were subsequently let go or resigned, they said.
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