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Oracle Acquisition of TikTok Shelved

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The US government is no longer pushing for a sale of the US operations of the famous Chinese app TikTok. The Trump administration had worked out a settlement with Oracle and Walmart, among others.

 

President Joe Biden’s new administration scrutinises the previous administration’s initiatives on potential security risks from Chinese technology companies, the Wall Street Journal writes, based on anonymous sources.

Donald Trump accused Bytedance, the Chinese company behind TikTok, passed data from Americans to the Chinese government. To keep the platform in the US, Bytedance would have to sell its US operations.

After a long series of discussions, including takeover plans by Microsoft, an arrangement was eventually worked out that would sell the business to a group of American companies, including Oracle and Walmart.

In addition, Oracle would become the ‘technical partner’ managing TikTok’s online services in the US.

Before any takeover of TikTok, mostly the algorithm that made the platform so popular comes along, the deal must first be approved by the Chinese government. Last year, it introduced new laws to restrict the export of algorithms.

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