Tag: tiktok us

Trump backs down, supports TikTok deal

Asia, Business, China, Countries, Data Management & Networks, Digital Systems Technology, General, Social Media, Technology, USA

TikTok’s US operations got a new lease on life Sunday after President Donald Trump announced that he was supporting a deal between the Chinese app’s parent company ByteDance and American tech company Oracle.

“I have given the deal my blessing,” Trump said. “I approve the deal in concept.”

So much for all of his anti TikTok histrionics. Just a few days ago he stated that, beginning Sunday, he would prohibit Americans from downloading the app. This came after he said he was “conceptually” opposed to a deal that allowed ByteDance to hold onto a majority stake of TikTok.

But Trump has given his “blessing” to a deal that does just that.

As Reuters reports, the deal places TikTok in the hands of a new company called TikTok Global. While headquartered in the US, TikTok Global is majority owned by ByteDance, which has an 80 percent stake. What remains is split between Oracle Corp (12.5 percent) and Walmart (7.5 percent).

Critically, though, all of TikTok’s user data from the US will be hosted by Oracle. The user data question was the main sticking point, as Washington argued that the Chinese Communist Party had access to TikTok’s databases, putting the privacy and security of American users at risk. Indeed, Trump and his lackeys routinely and melodramatically asserted that TikTok posed a grave “national security threat” to the United States.

Again, Trump previously stated that he would not support a deal that resulted in ByteDance retaining a majority stake. But he’s moved the goal posts and is justifying his reversal by pointing to the fact that approximately 40 percent of ByteDance stock is owned by American investors.

Add that 40 percent to Oracle’s 12.5 percent and Walmart’s 7.5 percent, and Americans technically have a majority stake. So goes the new argument, which your average online tutor will tell you is specious at best.

Of course, Trump will approve the deal not because it satisfies his administration’s “national security” concerns, but because it gives him one more thing to boast about in the run up to the presidential election on 3 November.

A new national poll from the Wall Street Journal and NBC News has Democratic nominee Joe Biden up 8 points on Trump.

Trump pooh-poohs potential TikTok deal

Big Data, Business, China, Communications, General, Government, Info Tech, Main, North America, Social Media, Technology News

The TikTok saga continues in the US, with Donny Trump expressing a lack of enthusiasm over the prospect of American tech company Oracle taking over the popular video app (or at least part of it). Details of Oracle’s bid are expected any time now, but Trump has already poured cold water on the idea.

“I’m not prepared to sign off on anything. I have to see the deal,” Trump told reporters at the White House Wednesday.“It has to be 100 percent as far as national security is concerned.”

Trump, along with many others in Washington, maintains that TikTok represents a threat to US national security. The argument is that ByteDance has a sort of 2 way radio going with the Chinese Communist Party, collecting data from American TikTok users (there are reportedly 100 million of them) and then handing it over to Beijing.

ByteDance denies that such a relationship exists but, needless to say, Washington isn’t convinced. In August Trump has announced that he will ban the app in the US unless ByteDance sells it to an American company. In addition to the privacy concerns, Trump alleged that TikTok “censors content that the Chinese Communist Party deems politically sensitive.” It also serves as a platform for political disinformation, he charged.

At first it appeared that Microsoft would save the day, but talks with ByteDance fell through, opening the door for Oracle.

The word now is that Oracle is seeking a minority stake in the Chinese company, rather than taking it over completely. AP reports that, according to the terms of this deal, ByteDance would give control of user data to Oracle and allow the US corporation to review—but not author—code and updates.

Trump stated he would be against such a deal.

“Conceptually, I can tell you I don’t like that,” he said. “If that’s the case, I’m not going to be happy with that.”

Trump was apparently hoping the US government would get a piece of the deal, and was distraught to be told otherwise.

“Amazingly, I find that you’re not allowed to do that,” he told reporters. “If they’re willing to make big payments to the government they’re not allowed because … there’s no legal path to doing that. How foolish can we be?”

The deadline for a deal is 20 September. Whether or not that can be extended is unclear.

Tick-tock, tick-tock: time is running out for TikTok in the US

Asia, Australia, Big Data, Business, China, Communications, Countries, Data Management & Networks, Digital Systems Technology

Here is a syllogism: TikTok is owned by a company called ByteDance. ByteDance is based in Beijing. Therefore, Washington is moving to ban TikTok in the United States.

Just this week the US House of Representatives voted to prohibit federal employees, including senators and reps, from using TikTok on government devices. Politico reports that the amendment (it’s part of a $741 billion “defense” budget bill) passed comfortably—336-71.

Why any federal employee would want to use TikTok in the first place is beyond me. Last I checked it was an app for preteens. But I suppose that is neither here nor there.

The point, according to Washington, is that TikTok represents a unique national security threat. Asked whether Americans ought to use TikTok, America’s top diplomat—the fleshy Mike Pompeo—said:

“Only if you want your private information in the hands of the Chinese Communist Party.”

The argument being that TikTok collects its users’ data and then shares said data with the sordid Politburo. It’s not a frivolous concern, and TikTok’s insistence that it would never ever do such a wicked thing is not impressive. It’s just really hard to agree with Mike Pompeo, who went on to say that banishing TikTok, along with other Chinese apps, is “something we’re looking at.”

Well, this has reportedly engendered a frenzy in the American business world. A group of investors is considering purchasing a majority stake in the app with a view to saving it. TikTok hasn’t commented on this development yet, simply stating that “We are very confident in the long-term success of TikTok and will make our plans public when we have something to announce.”

But even if such a change in majority ownership were to occur, Washington probably wouldn’t be mollified. Paul Triolo, head of global tech policy at Eurasia Group, put it this way to CNN:

“It does not seem likely that US investors alone buying a majority ownership stake would satisfy CFIUS or broader US government concerns about the Chinese ownership piece and the potential for US personal data to find its way back to Beijing.”

TikTok is under fire elsewhere too. India has already banned it and other Chinese apps following a deadly skirmish between Indian and Chinese soldiers along their mutual border in the Himalayas.