Tiktok Agreement

TikTok Agreement: What You Need to Know

In recent months, TikTok has been at the center of a political storm, which has led to discussions about a possible ban in the United States. However, on September 19, 2020, the United States Department of Commerce announced that it would postpone the ban on TikTok downloads from app stores in the country until September 27, following the announced TikTok agreement made with Oracle and Walmart.

What is the TikTok Agreement?

For those who are not in the know, the TikTok Agreement involves the technology companies Oracle and Walmart teaming up to purchase a 20% stake in TikTok Global, the new U.S. company behind the popular social media app. TikTok Global will be headquartered in the United States and will be responsible for managing TikTok`s U.S. operations. In addition, Oracle will become TikTok`s secure cloud provider and will store all U.S. user data.

The deal also includes a promise to create 25,000 jobs in America, with the company investing $5 billion into the country`s education programs.

Why Was the TikTok Agreement Necessary?

The Trump administration had raised national security concerns about TikTok`s parent company, ByteDance, alleging that the Chinese government could access data on the app`s U.S. users. To avoid a ban, TikTok needed to find a way to establish its U.S. operations as separate from its Chinese parent company.

TikTok`s agreement with Oracle and Walmart is a solution to this problem. By creating a new U.S. company, ByteDance has a way to ensure that data on U.S. users is stored in the United States and is subject to U.S. laws. The deal also ensures that the app can continue to operate in the United States, providing entertainment for millions of Americans.

What Happens Next?

While the TikTok agreement is a positive step for the future of the app in the United States, it is not a done deal. Although the U.S. Department of Commerce has postponed the ban on TikTok downloads, the future of the app in the United States is still uncertain. TikTok Global will have to go through a complex process to gain approval from the Committee on Foreign Investment in the United States, which is responsible for reviewing foreign investments that could impact national security.

If the committee approves the deal, TikTok will be able to continue operating in the United States, and U.S. user data will be secure. However, if the committee rejects the deal, TikTok`s future in the United States will be uncertain.

In conclusion, the TikTok agreement is a complex and necessary step to ensure the app`s future in the United States. While the deal is not yet final, it is a positive step forward and provides hope that TikTok will continue to provide entertainment for millions of Americans for years to come.