TikTok Deal in Progress: US & china Navigate Algorithm Security & Ownership
the US and China are working towards a deal regarding TikTok’s operations in the United States, aiming to address concerns about potential Chinese government influence over the platform and its algorithm. A key component of the agreement involves ByteDance, TikTok’s parent company, providing its original algorithm software to the US. This software will then be replicated and re-trained using data from american users, wiht ongoing monitoring to ensure proper function.
The deal stems from a US law passed last year that would have banned TikTok if ByteDance remained its owner.While former President Trump initially attempted to block the app, he has repeatedly extended deadlines and sought a solution allowing a US-based operation to continue. Following a phone call with Chinese President Xi Jinping, Trump announced a tentative agreement, though confirmation from Beijing has been less definitive.
Key Details of the Proposed Deal:
* New US Company: A new company will be formed to operate TikTok in the US, with American investors holding approximately 80% ownership. Oracle and Silver Lake are expected to be major stakeholders.
* ByteDance’s Limited Role: ByteDance will retain a minority stake of under 20% in the US TikTok operation,as required by US law.
* Algorithm Oversight: Oracle will be responsible for storing and securing US user data,and will work with the US government to oversee the replicated algorithm. Concerns have been raised regarding Oracle’s founder, Larry Ellison, and his support for Trump, possibly impacting freedom of expression on the platform.
* No Government Control: The US government will not have a seat on the Board of Directors, hold shares, or possess a “golden share” granting influence over the company.
* Global Connectivity: The US spin-off will not affect users outside the United States. American users will continue to see content from around the world, and vice versa.
Remaining Hurdles:
While a deal is in progress,several steps remain. Trump is expected to issue a presidential decree confirming the agreement aligns with US security interests,granting TikTok another 120-day grace period. China must also grant an export license for the algorithm software.
The White House acknowledges the process is ongoing and that finalizing all details will take time. A purchase price for the US TikTok operation has not yet been resolute.
