ByteDance, the Chinese company that owns the popular video-sharing app TikTok, has tapped Oracle as its U.S. technology partner in a bid to keep its U.S. operations going.
So what does that mean for you?
“The impact of the Oracle deal on TikTok users is a difficult question to answer at this point since we don’t have a full picture of what Oracle’s role will be,” said eMarketer analyst Debra Aho Williamson. “The biggest concern that TikTok users have is that the app that they love will continue to exist. That is their ground zero. They love TikTok so much that some TikTok users have changed their location on their phone to Canada so that they won’t lose access to TikTok if it were banned in the U.S.”
The Oracle announcement comes a week before the Sept. 20 deadline for ByteDance to sell TikTok to an American company or risk being banned because of national security concerns. With its chummy relationship with the Trump administration, Oracle may have the inside track to get a deal done.
“We can confirm that we’ve submitted a proposal to the Treasury Department which we believe would resolve the Administration’s security concerns,” TikTok said in a statement.
A critical factor will be making sure the technology is safe for users in the U.S. under the proposal, Treasury Secretary Steven Mnuchin said Monday.