Ina Fried, Axios’s chief technology correspondent, details how China based BytDance and U.S. based Oracle made a deal that gives Oracle control and access over user data and other security measures to ensure Americans’ data is protected. Additionally, Oracle will have sole power to oversee TikTok’s U.S. tech operations. Oracle will also take measures to ensure there will be no adverse changes or backdoors.
Another unique characteristic of this deal is that TikTok in the U.S. will have its own U.S. government approved board. This board will have a security director with national security credentials and a security subcommittee with U.S. citizens. This board will have the final say regarding security and data privacy and veto power over board decisions regarding security matters. Lastly, the subcommittee ensures TikTok in the U.S. will be compliant with the Committee on Foreign Investment in the United States (CFIUS) demands. TikTok Global, partially owned by Oracle and Walmart, will have a separate U.S. based board. It will own global operations, including the U.S. operation, which will have its own governance with separate security measures.
President Trump and U.S. security officials stated TikTok’s video-sharing platform is a U.S. security risk because China could access U.S. user data. Therefore, Trump said he would ban TikTok unless ByteDance agreed to sell by mid-September. It appears the Trump Administration is happy as ByteDance is no longer the primary TikTok owner.