Few days ago an extension of one week was announced term for the application of the decree Posted on Friday forcing Apple and Google to remove TikTok and WeChat apps of your download windows.
Recall that sources involved in the negotiations to acquire TikTok told the New York Times that the owner of the social network has designated Oracle as its technological partner in its operations in the United States.
A person briefed on the matter said the delay gave ByteDance (the owner of TikTok) Oracle and Walmart time to finalize the deal to create a new company called TikTok Global to manage TikTok's operations in the United States.
Clearly it's Sunday now September 27 when these measures will be applied:
- Any service provision to distribute or maintain the WeChat or TikTok mobile applications, constituent code or application updates through an online mobile application store in the United States.
- Any provision of services through the WeChat mobile application for the purpose of transferring funds or processing payments in the United States.
From the 27 of September of 2020, for WeChat and from November 12, 2020, for TikTok, the following transactions are prohibited:
- Any provision of Internet hosting services that allows the operation or optimization of the mobile application in the United States;
- Any provision of content delivery network services that enables the operation or optimization of the mobile application in the United States;
- Any provision organized or contracted directly from Internet peering or transit services that allow the function or optimization of the mobile application in the United States;
- Any use of the code, functions or services constituting the mobile application in the operation of software or services developed and / or accessible in the United States.
For its part, President Trump said he had approved "in concept" Oracle's offer for TikTok.
"I gave my blessing to the deal," Trump told reporters outside the White House on Saturday as he was leaving for a rally in North Carolina. "I approved the agreement in concept."
How does this agreement respond to security concerns?
In his statement for the weekend, TikTok said a bit more about how the new deal addresses the president's security concerns:
“We are pleased that the proposal from TikTok, Oracle and Walmart solves the world's security concerns. administration and answer questions about the future of TikTok in the United States.
"As part of this agreement, Oracle will become the trusted technology provider responsible for hosting all US user data and protecting associated computer systems to ensure US national security requirements are fully in place. satisfied. We are currently working with Walmart in a trade partnership.
A spokesperson for Walmart said that "There was still work to be done on the final deals," but the company tentatively agreed to buy 7,5% of TikTok Global "and enter into commercial agreements to provide our e-commerce, fulfillment, payments and other omnichannel services to TikTok Global."
As well it is said that the CEO of Walmart, Doug McMillon is one of the five board members of the newly formed companythe spokesperson added, and the company is working on an IPO in the United States over the next year.
The CEO of Oracle, Safra Catz said in a press release Saturday what Oracle to become a minority investor in TikTok Global and will be TikTok's "secure cloud technology provider" under the agreement.
The Chinese government must approve any transaction to move forward. In fact, at the end of August, for the first time in 12 years, the Chinese Ministry of Commerce published changes to its list of technologies that cannot be exported and / or require a permit to be transferred abroad. Thus, US entities interested in taking control of TikTok's US activities could be denied the sale or face a long and painful purchase process to discourage them.