Tiktok Choses Oracle Over Microsoft For Its Operations In The US






TikTok’s Chinese owner has chosen Oracle as the technology partner of the app for its operations in the US, rejecting the acquisition offer from Microsoft – a;l of this comes after President Donald Trump threatened to ban the app in the US unless the American operations are sold to an American company.

The people involved in the negotiations said that they weren’t sure whether or not Oracle would take a majority ownership stake of TikTok after it being chosen as the technology partner. Microsoft was always considered as the American technology company with the strongest contender for buying the US operations of TikTok from its parent company ByteDance also with the strongest ability to address the security concerns mentioned by the president’s order.

Microsoft said in a statement: ‘ByteDance let us know today they would not be selling TikTok’s U.S. operations to Microsoft. We are confident our proposal would have been good for TikTok’s users while protecting national security interests.’

With the clock ticking down on the executive orders made by Trump, stating that TikTok had to make a deal to sell the US operations by 20th September or get blocked in the United States. But the deal talks had been delayed due to China issuing that would restrict TikTok from transferring the company’s technology to a foreign company without any permission from the Chinese government.

These regulations helped in scuttling bid from Microsoft. In August, the software giant had stated that it would enforce a series of protections that would transfer the control of the computer code that the popular app uses for the American as well as the other English-speaking versions.

The only way of both protecting the privacy of TikTok users of the US and preventing Beijing from using the app as a platform for disinformation as stated by Microsoft was to take full control of the computer code and the algorithms that are used to determine what kind of videos are watched by the 100 million American users.

Microsoft said in a statement: ‘We would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combating disinformation.’

Both TikTok and ByteDance have denied that they transfer information to the Chinese government.

TikTok has turned out to be the latest bone of contention between Beijing and Washington over the control of the technology that affects the American users. The President had already stopped the sale of Chinese telecom giant Huawei’s 5G network and equipment in the US citing safety concerns.