TikTok and Oracle Nearing Deal for Data Storage and Security

Prominent short video app TikTok is close to reaching an agreement with cloud computing firm Oracle to store the information of U.S. users while impeding the access of the platform’s Chinese parent ByteDance in an effort to address data integrity concerns of a U.S. national security panel.

The move follows the Committee on Foreign Investment in the United States (CFIUS) urging ByteDance to divest TikTok in late 2020 out of apprehensions that the data of U.S. users could be passed on to the communist government of China. Former President Donald Trump had previously planned to ban the platform, forcing ByteDance to sell TikTok’s U.S. business. To alleviate data security fears, it was announced that Oracle would become a minority owner of TikTok.

This original deal, however, was dismantled after Joe Biden succeeded Trump — who also revoked the ban last June. It is still unclear whether the CFIUS will feel that the partnership between TikTok and Oracle would resolve the national security issues that have been identified.

Nonetheless, the U.S. user data of TikTok would be transferred under Oracle data servers should the agreement push through. This will also lead to the establishment of a dedicated U.S. data management team — that will not be under TikTok’s supervision — to act as a gatekeeper for U.S. user information. Currently, most of TikTok’s data is being stored on Alphabet Inc.’s Google Cloud.

The platform is also actively looking for partnerships with other technology companies over firewalls and cyber security measures. “TikTok is committed to protecting the privacy and security of our community,” explained a TikTok spokesperson. “User data is stored in data centers in the U.S. and Singapore, and we continue to invest in data security as part of our overall work to keep our users and their information safe.”

A lot of app developers have been closely examined by the U.S. when it comes to the handling of personal data, especially platforms that involve military or intelligence personnel. A similar case to TikTok occurred in 2020 when Chinese gaming company Beijing Kunlun Tech Co Ltd was forced by the CFIUS to sell Grindr — a dating app for gay, bi, trans, and queer people — after it was reviewed for national security concerns.

Sources: Reuters, Yahoo Finance