Short-video app TikTok, which is owned by Chinese social-media unicorn ByteDance, is close to a deal for Oracle Corp to store the information of its US users without ByteDance having access to it, reports Reuters. According to people familiar with the matter, the move aims to address US regulatory worries around data integrity on the app.
The agreement would come a year and a half after a US national security panel ordered ByteDance to divest TikTok because of fears that US user data could be passed on to China’s government.
That order was not enforced after Joe Biden succeeded Donald Trump as US president last year. The panel, however, known as the Committee on Foreign Investment in the United States (CFIUS), has continued to harbor concerns over data security at TikTok that ByteDance is now hoping to address, the sources said. It is not clear whether CFIUS will find that TikTok’s partnership with Oracle will resolve the national security issues it has identified, the sources said.