- TikTok and Oracle form business partnership for the popular video-sharing app’s operations in the United States
- The arrangement seeks to strike a compromise on the White House demand that TikTok be sold or be shut down in the U.S. due to security concerns
- Partnership brings on Oracle as a “trusted technology partner” to handle user data
Under pressure from the Trump Administration to sell its U.S. operations, the popular video-sharing app TikTok has instead struck a deal that it hopes will satisfy concerns over data security.
TikTok, which is owned by the Chinese company ByteDance, has created a business partnership that brings on the U.S. company Oracle as a “trusted technology partner” to handle user data. The White House ultimatum, which gave ByteDance until Sept. 20 to complete a sale before a potential shutdown of TikTok in the U.S., was a result of concerns that user data might be made available to the Chinese government.
Those familiar with the deal said it is designed to alleviate such concerns while also skirting other issues that would complicate a sale, such a transfer of the app’s algorithm. The proposal is under review by Trump Administration officials, and it remains to be seen whether the conditions are satisfactory or whether the threat of a U.S. TikTok ban remains in place.
TikTok has gained a massive following among young adults, and businesses have increasingly started using it in their marketing efforts.