To avoid ban, TikTok accepts Oracle as US Partner
TikTok, the clock is ticking!
It is typical of the government of a nation to protect its citizens. Hence, it is no surprise that the US government has expressed its concern over national security issues with TikTok. However, is this purely about the safety of citizens, or is it a matter of geopolitical tension between the US and China?
ByteDance, the owner of TikTok, has repeatedly disclaimed allegations that the app could be used by the Chinese government to spy on US citizens. It has been acknowledged that the US used data is not stored in China.
However, on August 6th, President Donald Trump announced his notion to ban TikTok, unless it was purchased by a US company. In his address, Trump specifically made mention of Microsoft as a candidate. Although, it was announced recently that TikTok rejected the bid by Microsoft.
TikTok’s modern history begins in August 2018 and ByteDance has largely invested in its popular app since then. Apparently, the huge investment has resorted to over 100 million users in the US, having grown by a whopping 800% since 2018! Unfortunately for ByteDance, pressure has continually been exerted on the sale of TikTok to a US company.
ByteDance has chosen Oracle as a partner in the US this decision came as the deadline for the ban draws near. Oracle, which has close ties with the US and offers infrastructure to government bodies such as the CIA, NSA, as well as Naval and Air Force Intelligence, had shown interest in purchasing the app, and on Monday Oracle Confirmed that it is part of the proposal submitted by ByteDace to the US Treasury Department.
The proposal submission was also confirmed by Treasure Secretary Stephen Mnuchin’s on Monday in an interview with CNBC. He also stated that the US government is reviewing the deal. Oracle has a 40-year track record providing various secured technological solutions globally. For this reason, it is expected that Oracle would meet the needs of TikTok’s users as well as satisfy American national security concerns. These claims have been presented to the US Treasury Department and the proposal would be reviewed to confirm that it is secure.
Certainly, the sudden threat of a ban raised concerns in China. According to engagdet.com, the country has said it will not take this ‘theft’ lying down. Hence, TikTok filed a lawsuit against the US, saying that it was denied due process and that its treatment has been unreasonable.
As the deadline, September 20th drew nearer, China started to put a harder line in its negotiations, saying that it may not allow any US company to buy TikTok.
According to reports, China would rather shut down the app.
In the midst of the backlashes and clashes, it’s not clear what the Oracle-ByteDance-TikTok deal will look like. In striking a balance, ByteDance must hand over enough resources to please the US government, however mindful not to frustrate Chinese authorities.