According to the announcement, Oracle will become the “reliable technology provider” responsible for storing all US user data and Walmart is TikTok’s US trading partner.
Popular video sharing platform TikTok on September 19 announced it had prepared an agreement, in which Oracle is acting as a technology provider and Walmart as the US trading partner of the platform. The announcement comes just a day before the ban went into effect for TikTok.
A TikTok spokesperson said the proposal of cooperation between TikTok, software development company Oracle, and retail giant Walmart will address security concerns for the US Government, as well as questions surrounding TikTok’s future in the country.
According to the announcement, Oracle will become a “trusted technology provider” responsible for storing all US user data, and securing related computer systems to meet all US national security requirements. .
A TikTok spokesperson said the company is currently working with Walmart on a commercial partnership.
US President Donald Trump earlier the same day expressed his welcome to a “great” deal between TikTok, Oracle and Walmart, saying that he “congratulates” on the deal.
In response to reporters, President Trump said that the proposed agreement involving TikTok app owner ByteDance Ltd., software company Oracle and retailer Walmart would help ensure confidentiality. 100%.
Trump also hinted that the deal would lead to the creation of a new company in charge of TikTok’s US operations. This new company is likely to be headquartered in Texas. According to Bloomberg, the Chinese government must approve the new company as a step to finalize the agreement.
However, Trump also said that it is not a problem for the companies to reach a deal.
On the same day of September 19, citing “recent developments,” the US Commerce Department said it would delay a ban on downloading TikTok from US app stores. The ban was originally scheduled to take effect Sunday night (September 20), but has now been pushed back to September 27.
TikTok has become extremely popular in America after the parent company is ByteDance China’s acquisition of video-sharing platform Musical.ly in 2017 for about $ 1 billion. Musical.ly was later renamed TikTok.
But the Trump administration sees TikTok, along with China’s WeChat messaging app, as a national security risk. Washington alleges that these platforms collect a lot of data from US citizens for transfer to the Chinese government. Both platforms above have denied these allegations./.