The ongoing drama surrounding TikTok’s U.S. operations continues to unfold, with new developments surfacing almost daily. Oracle has emerged as the frontrunner in a proposed partnership, potentially working alongside ByteDance to oversee security and operational functions for the app in the United States. However, the deal may still face significant legal roadblocks under newly enacted legislation.
Oracle’s Role in the TikTok U.S. Plan
Reports indicate that Oracle is weighing a proposal that would allow it to serve as a trusted partner for TikTok in the U.S. The key element of this arrangement would focus on safeguarding American user data, a primary concern addressed in the “Protecting Americans from Foreign Adversary Controlled Applications Act.”
- Oracle would work with U.S. buyers to verify data security.
- The company would ensure that no backdoor access exists for Chinese authorities.
- The partnership would attempt to satisfy legal concerns without requiring ByteDance to relinquish TikTok’s algorithm.
This approach aligns with previous discussions within the Trump administration, which explored similar solutions to mitigate national security risks. However, while Oracle’s involvement may add a layer of security oversight, it does not fully align with the legal requirements set forth in the recent law.
Key Legal Barriers to the Deal
The new legislation, which took effect on January 19, explicitly outlines the conditions under which TikTok can continue to operate in the U.S. Any proposed agreement must ensure that:
- Foreign entities own no more than 20% of the app.
- Foreign entities have no direct control over the platform.
- Foreign entities have no operational influence over TikTok’s recommendation algorithms or data-sharing policies.
ByteDance’s reported stance on retaining control of TikTok’s algorithm presents an immediate conflict with these requirements. If the algorithm remains under ByteDance’s jurisdiction, the deal would likely be in direct violation of the law.
China’s Stance Complicates Matters Further
Beijing has made it clear that it will not permit the sale of TikTok’s algorithm, considering it proprietary technology under Chinese jurisdiction. This has been a major sticking point in past negotiations and remains a critical factor in the current situation.
A few possible scenarios could emerge:
- The U.S. enforces a complete ban on TikTok if no legally viable deal is reached.
- ByteDance agrees to separate the algorithm from TikTok’s U.S. operations, though this seems unlikely given China’s firm position.
- The U.S. government grants an exception or modifies its stance, though this could lead to political backlash.
With billions of dollars at stake, ByteDance and TikTok may be forced to reconsider their options. But unless Chinese authorities budge on their restrictions, the legal framework in place may prevent Oracle’s proposal from moving forward.
What Comes Next for TikTok?
For now, TikTok remains operational in the U.S., but uncertainty looms large. The legal framework is strict, and the Chinese government’s unwillingness to part with its algorithm presents a major impasse. Whether this leads to further negotiations, a forced sale, or an outright ban remains to be seen. One thing is certain: this saga is far from over.
