The federal government has started investigating Zoom's planned acquisition of Five9 for its national security impact, a move that could give companies pause when deciding whether to do business with Zoom.
The Department of Justice
has asked the Federal Communications Commission to refer the deal to an interagency committee known as Team Telecom to investigate whether Zoom's ties to China could jeopardize U.S. national security or law enforcement interests. The Wall Street Journal first reported on the request this month.
The increased scrutiny might scare off current or prospective Zoom customers, as the company has previously caught flak for its connections with the Chinese government. Though Zoom is a U.S.-based company, it has product development operations in China.