Sep 14, 2020 App News
TikTok has been facing serious threats to its business model and existence in the United States, as President Donald publicly stated and threatened to ban all services of TikTok in the country as he had concerns about the app being owned by a Chinese company, being ByteDance, and the data of all US users being in danger of being exposed to the Chinese government. Previously, the US President wasn’t having any of it, as he mentioned the ability to sign an executive order to ban the app completely. However, then he provided the option of agreeing a deal of selling its services to a US based company, and Microsoft was seemingly first in line.
However, now it turns out that Oracle has snatched the deal away from Microsoft, as TikTok has chosen Oracle as its “Trusted Tech Partner” for services in the US. So why would TikTok go with Oracle and not with Microsoft? Well, Microsoft’s deal was to completely acquire TikTok, taking over the business and the sales of the Chinese app. However, that wasn’t in the best of interests for ByteDance - as they still wanted to be in the driving seat of their app. So, with Oracle, it’s not a direct acquittal or sale to the company - instead, TikTok is now going to be operating over the cloud servers of Oracle, and in doing so, satisfying the US government of safe and secure data transfer and handling.
Microsoft was aiming to get the services of TikTok globally, as they thought it would be a deal they’d be able to close. However, TikTok had other ideas, and they seem to be pretty good for the company as they’ll be able to manage their content and app still - all that while making sure they do it over a US based company’s servers so as to keep the administration satisfied in security terms. Oracle is also well supported by the US government, as the President himself was happy to see the interest of the American company shown in TikTok.