US, China Reach TikTok Deal: Americans to Control Data, Algorithm
The US and China have reached a deal over TikTok's US operations, with Americans set to take majority control. This move aims to address long-standing concerns about data privacy and potential national security risks.
White House Press Secretary Karoline Leavitt confirmed the new deal, which will see Oracle manage TikTok's US data and privacy aspects. This includes storing American user data in US data centers under Oracle's supervision. ByteDance, TikTok's parent company, will retain less than 20% of shares, with Oracle's co-founder Larry Ellison taking a significant stake.
The agreement allows the US to control TikTok's US algorithm and data, potentially benefiting US-based businesses. However, the long-term effects on US businesses remain to be seen. The new version of TikTok may still use part of the Chinese algorithm, trained on American user data, which could impact US businesses' visibility on the app.
The deal extends TikTok's lifespan in the US, following President Trump's initial ban in January 2021 due to security concerns. The new arrangement aims to address these concerns by giving the US a dominant role in maintaining TikTok's algorithm and data. However, the full implications of this deal on US businesses and users remain to be determined.
