TikTok: Trump is not Happy With the Agreement Reached by Oracle and ByteDance
The US Government has announced this Saturday that it will delay for a week the measures against the Chinese social network TikTok, which were to take effect on September 20, after President Donald Trump gave his “blessing.” to a preliminary agreement so that it can operate in the country. The Asian company has agreed to partner with Oracle and Walmart to avoid their blockade in the country.
In light of recent positive developments, Commerce Secretary Wilbur Ross, under the leadership of President Trump, has confirmed that he will delay the ban on the transactions identified in Executive Order 13942, related to the mobile app TikTok. This would have entered into force this Sunday until September 27, 2020, at 11:59 pm, “says the Department of Commerce in a statement.
Trump has advanced hours before these proposals before confirming the agreement with TikTok by which the social network is going to partner with the US companies Oracle and Walmart to operate in the US, although he noted that the negotiations were still continuing. “I have given my blessing to the agreement, if they achieve it it would be great and, if not, it would also be good, but it is a great agreement for the US”, said the president, who shortly after added that he approved the agreement “in concept” .
Trump stressed that Oracle and Walmart would partner with TikTok, “the security would be 100%, they will be using separate” clouds “and very powerful security and they will be making a contribution of 5 billion dollars in education.” “We will see if it happens or not , but conceptually I think it is a great agreement for the US, “said the president, who assured that if a pact is reached, 25,000 jobs will be created, most of them in Texas and that it will be a new company, although it will keep the name from TikTok.
“Solve the security problem”
The Chinese company, owned by ByteDance, has assured in a statement that the agreement will allow “solving the security problem.” Oracle, in this way, will become the application technology provider in the United States to store user information and protect their personal data.
Support for public cloud
In addition, Oracle and Walmart will initiate a financing round before TikTok’s IPO in which they will be able to acquire a stake of up to 20% in TikTok Global, the “new” company headquartered in the United States, which promises to employ 25,000 people in the country. From Oracle they have assured in a statement sent to ABC that the decision was “strongly influenced by the recent success of Zoom” in transferring a large part of its videoconferencing capacity to the company’s public “cloud”.
Oracle will, for its part, have full access to the source code and updates of TikTok to ensure that there are no “back doors” to collect information from the 100 million users that the application has in the United States by the Chinese company, accused to be a new instrument of cyber espionage at the service of the communist regime.
The US multinational “will rapidly deploy, scale and operate” TikTok systems on cloud services. “We are one hundred percent confident in our ability to provide a highly secure environment for TikTok and ensure data privacy for US TikTok users and users around the world,” Oracle CEO Safra said in a statement. Catz.
This Friday, the Commerce Department announced that it would block the downloads of TikTok and the WeChat (Chinese WhatsApp) messaging network on US app purchase sites as of Sunday, September 20, and that the country’s authorities would veto their full use in the US as of November 12, citing national security concerns.
In the case of WeChat, it also vetoed from this Sunday any transfer of funds or payments in the US through this application. Neither the Commerce Department nor Trump made reference to WeChat this Saturday, so on September 20 the prohibitions related to this social network come into force.