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TikTok, Oracle Deal Goes South As US Bans Transactions Effective Sunday

tiktok, wechat
TikTok. [Courtesy]

The US Commerce Department is planning on restricting the use of TikTok and WeChat starting Sunday.

According to the Department of Commerce Secretary Wilbur Ross, the apps pose a risk to national security.

Ross also said that it will also be illegal to host or transfer internet traffic associated with WeChat and Tiktok as of November 12.

“Today’s actions prove once again that President Trump will do everything in his power to guarantee our national security and protect Americans from the threats of the Chinese Communist Party,” said the Commerce Secretary.

Read: Senators Voice Concerns Over Chinese App TikTok Security

He added: “At the President’s direction, we have taken significant action to combat China’s malicious collection of American citizens’ personal data, while promoting our national values, democratic rules-based norms, and aggressive enforcement of U.S. laws and regulations.”

On Monday, Oracle won a deal that will see it manage TikTok’s US operations. The Wall Street Journal reported that the company was selected as a ‘trusted tech partner’ as opposed to acquiring the company’s US operations in full.

The deal will reportedly see Oracle help TikTok run the US operations using their own cloud technology.

Read Also: YouTube Starts Rolling Out Its TikTok Competitor Shorts

Microsoft was considered the frontrunner in the acquisition of the Chinese owned company after they started their negotiations way before US President Donald Trump issued a notice to ban TikTok’s operation in the country.

Trump cited security concerns amid claims that the app was gathering data from US citizens which he believed could be shared with the Chinese government.

Trump signed an executive order giving ByteDance 90 days to make a deal or face the ban. The popular Chinese app operators were reportedly not happy about the pressure from the US President to sell the business.

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Written by Eva Nyambura

Content creator at Kahawatungu.com | Passionate about telling the untold story. Lover of life, music and technology. Simplicity is KEY

Email: news@kahawatungu.com

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