The social network TikTok, which has been occupying the policy scene in the USA for a long time, cooperates with Oracle in order to continue its activities in this country. In the statement made on the subject, it was stated that Oracle is part of the offer submitted to the US Treasury Department by ByteDance, the owner of TikTok.
In the offer, Oracle is defined as TikTok’s “secure technology provider”. It does not provide information on how the partnership structure of the social network will take shape. The agreement between the two companies must be approved by both the US and China for it to be valid.
Speaking to CNBC, US Treasury Secretary Steven Mnuchin stated that the US will examine whether the proposal is “safe” this week. This review will focus on the commitments to protect American users’ data, the security of each user’s phone, and the security of the TikTok code.
At the same time, Mnuchin, who is the head of the Foreign Investment Committee, has the opportunity to veto agreements in case of a national security threat. The decision of the committee is planned to be reported to the White House by the end of this week.
Oracle, which has no contact with the end user, sells its database and cloud systems to large companies and organizations. Oracle’s customers include major US institutions such as the CIA, NSA, Navy and Air Force Intelligence. Oracle’s close relationship with the state and the close friendship of its founder Larry Ellison and US President Donald Trump strengthen the chances of ratifying the deal. In CNBC’s report, it is stated that Oracle wants to use TikTok’s analytical data to improve the advertising platform rather than being a social media giant like Facebook.
Details of Oracle and ByteDance’s TikTok deal unknown
TikTok’s US adventure was driven by the presidential decree signed by Donald Trump last month. In the decision in question, TikTok was given a deadline until September 15 to sell US operations to an American company, and it was stated that the application would be banned in the USA otherwise. ByteDance, owner of TikTok, who applied to the court against this decision, also started to meet with important companies such as Microsoft and Oracle. Microsoft recently announced that its offer for TikTok was not accepted.
While it is hard to say anything about the structure of the TikTok deal between ByteDance and Oracle, it is not difficult to understand that there is a complicated agreement. ByteDance needs to share information at a level that will gain the trust of the Trump administration on the one hand and not annoy the Chinese government on the other.