The U.S. Department of Justice is investigating Zoom’s agreement to buy cloud contract software company Five9 for $14.7 billion, citing potential national security risks due to Zoom’s ties with China.
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In a letter dated August 27, the department’s national security division asked the Federal Communications Commissions to refer the case to the committee for review of any risk raised by the ‘foreign participation’.
DoJ told FCC the committee wants to determine whether Zoom’s purchase poses a risk to the national security or law enforcement interests of the U.S.
Zoom announced the deal with Five9 in July in a bid to expand into adjacent markets. The video-conferencing company has been under the scanner due to potential Chinese influence on its operations.
Last year, the DoJ charged one of its China-based executives for co-operating with Chinese authorities to disrupt videoconference commemorations of the Tiananmen Square democracy protests. Besides, Zoom is facing multiple federal investigations over its ties with Beijing.
As with any application that is referred to the Committee, U.S. DoJ further requested that FCC defer action on this application until the Committee has concluded its review.
