Amidst fear of American user data being collected by the Chinese government, the US government threatened to ban the popular video-sharing app in the US after concerns were raised that it could be a national security risk.  Secretary of state Mike Pompeo said the U.S. is looking at banning the app because TikTok puts American users' “private information in the hands of the Chinese Communist Party." 

On August 6,2020, President Trump issued executive orders that would ban two apps, TikTok and WeChat, from operating in the US if they were not sold by their respective Chinese parent companies by September 15.  Downloads were scheduled to be banned in the US starting at midnight September 20, but a new deal allowing Oracle to step in and take over US operations is on the table. 

"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 confirmed it had won a bid to become the "trusted technology partner" to TikTok. Oracle is a tech dinosaur known for selling database solutions to behemoth corporations, while TikTok is an app used by Generation Z for learning the latest viral dances, boycotting Trump rallies, and everything in between.

While it seems that no one knows exactly what a trusted technology partner does (including us), Oracle will start by providing TikTok with hosting services. Oracle will store user data, but ByteDance, the China-based parent company of TikTok, will still oversee and operate the app.

The arrangement raises numerous questions around the management of data privacy. The partnership does not give Oracle control over TikTok’s algorithm, leading some to fear that China could still exploit the app for nefarious purposes.

The proposed deal now heads to the Senate’s Committee on Foreign Investment, whose approval is by no means a sure thing. 

“We remain opposed to any deal that would allow China-based or controlled entities to retain, control or modify the code or algorithms that operate any U.S.-based version of TikTok,” Senator Marco Rubio wrote in a letter on Wednesday.

“OK boomer,” replied TikTok fans.

TikTok, which has over 100 million active users in the U.S., is owned by Chinese tech giant ByteDance who is also being sued for violating children's privacy laws (COPPA) by collecting data of young users under age 13 without parental consent [since 2014] and selling their data to third-party advertisers.