With approximately 100 million users in the United States, it’s not much of a suprise that TikTok videos have taken over the internet. But as the relationship between Washington and Beijing is deteriorating, the future of this video app, Tik Tok which is owned by China’s ByteDance looks uncertain.
TikTok is a threat to US Security?
Even, in recent weeks, the US government officials have said that TikTok is posing a serious threat to national security and President Donald Trump has warned to ban the app until an American company takes over its domestic control.
With this, a bidding contest started and many of the Big American corporations like Microsoft, Oracle, and Walmart. However, Microsoft is no longer a contender. On September 13, Microsoft announced that its bid was rejected by the ByteDance. Although, Oracle and Walmart are still in the race.
Oracle has agreed to become the new business partner of TikTok in the United States, but it is not cleared if the proposed deal will be approved by the government officials, who have intended that they want to carefully review any new arrangement.
What’s the latest on TikTok?
The latest development regarding TikTok came on Friday when the US department of commerce informed that it would ban Americans from downloading TikTok and WeChat, another Chinese-owned app.
Earlier this week, Oracle said that it submitted a proposal to US Treasury Department for partnership with TikTk in the US. However, the companies have yet to secure support from Trump or Beijing to finally get the partnership done.
According to the sources, under the deal, ByteDance will remain the majority shareholder in App. TikTokApp will set up its headquarters in the United States and Oracle will host TikTok user data and review TikTok’s code for security.
Although, this structure can be problematic as Trump said he will oppose any such plan in which ByteDance will be the majority shareholder.
On Friday, the US government raised the stakes. According to the Commerce Department, any moves to distribute or maintain TikTok on the US app store will be prohibited from Sunday. Adding that, it will be illegal to host or transfer internet data associated with TikTok.