In a significant move concerning the popular app TikTok, the White House announced a plan to establish a new joint venture that will shift TikTok’s US operations away from its Chinese parent company, ByteDance. This arrangement is particularly motivated by national security concerns.
TikTok’s New American Chapter
Under the proposed deal, Oracle will act as the security provider for the US version of TikTok’s algorithm. This involves:
- Creating a board that will have seven seats, with six being held by American members.
- Transferring a copy of TikTok’s content recommendation algorithm to this new joint venture.
- Ensuring continuous monitoring of the algorithm to prevent undue influence from foreign entities.
According to White House Press Secretary Karoline Leavitt, this orchestrated shift aims to protect the data and privacy of American users. She confirmed Oracle’s significant role in leading this operation, stating, “The algorithm will also be controlled by America as well.”
A Tense Background
TikTok has faced scrutiny over concerns that the Chinese government could access user data or manipulate content for political purposes. The push to extricate TikTok from Chinese control gained traction under former President Donald Trump, who warned consistently about the potential risks associated with the app.
Though there are mixed feelings about the app’s influence, Trump even found a platform for his political campaign through TikTok, leveraging its popularity among young Americans.
Next Steps in the Deal
Following a phone conversation between Trump and Chinese President Xi Jinping, where the arrangement was reportedly discussed, Trump expressed optimism about finalising the deal. “We’ve got to get it signed,” he emphasized, amidst assurances from both leaders of leaning toward agreement.
While the deal is expected to be signed shortly, reports indicate that the US government might benefit financially with a multi-billion-dollar fee from the investors involved.