Published: Mon, October 19, 2020
Tech | By

United States bans TikTok, WeChat citing national security risks, collection of personal data

United States bans TikTok, WeChat citing national security risks, collection of personal data

Under the terms of the proposal, Oracle would have a 20 percent stake in TikTok's new USA entity, as well as access to all source code, sources told CNBC host David Faber.

The new entity would have a separate board, on which Walmart would control one seat, the sources said.

"We are a hundred percent confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok's American users and users throughout the world", said Oracle CEO Safra Catz. Oracle's statement is in line with Donald Trump's wish to run TikTok with complete American control without any Chinese interference. Beijing also has yet to approve the deal, though regulators are said to favor any transaction in which ByteDance maintains control of its valuable recommendation algorithms and other proprietary technology.

A Walmart spokesman on Thursday declined to comment further, and Oracle did not immediately respond to inquiries from on Thursday morning.

A federal judge has blocked the White House's ban on TikTok downloads in the United States just hours before the ban was set to take effect on Sunday night. "At the President's direction, we have taken significant action to combat China's malicious collection of American citizens' personal data, while promoting our national values, democratic rules-based norms, and aggressive enforcement of USA laws and regulations".

Oracle's leadership has strong ties to the Trump administration, another factor that could have played a role in Trump's approval of the deal. That has been reported, but it has not been told to me yet.

TikTok and WeChat will be banned from U.S. app stores from Sunday, unless President Donald Trump agrees to a last-minute deal.

"The Chinese Communist Party (CCP) has demonstrated the means and motives to use these apps to threaten the national security, foreign policy, and the economy of the U.S. Today's announced prohibitions when combined, protect users in the eliminating access to these applications and significantly reducing their functionality".

The video-sharing social media app is popular with teens and is now based in China.

He had previously given his approval over the Oracle sale but now it's unclear whether any form of deal will work for TikTok other than a huge sale of US operations in full. The company said that the 5 billion US -dollars is based on estimated income tax and other taxes that TikTok will need to pay in the next few years.

Under the new deal, TikTok will be stored on the Oracle Cloud, and user data will be stored there.

However, Mir noted that "it would clearly be within the authority of the President to modify his order" to allow an alternative to divestment, if he so chose.

The company also clarified on Monday that it is not aware of Trump's claim that there was a 5 billion-U.S. -dollar education fund included in the TikTok deal.

However, Microsoft said on Sunday that ByteDance had turned down its offer, and it remains unclear whether the Chinese firm would shed most of its ownership of TikTok to clinch a deal with the White House.

TikTok global will be "majority owned by American investors" including Oracle and Walmart, the companies say.

Last month, China updated its export control rules to give it a say over the transfer of technology, such as TikTok's recommendation algorithm, to a foreign buyer, making a full sale even more hard. "If the reorganization of TikTok under US manipulation becomes a model, it means once any successful Chinese company expands its business to the USA and becomes competitive, it will be targeted by the US and turned into a USA -controlled company via trickery and coercion, which eventually serves only US interests".

Like this: