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Us Authorities Want Full Control Over Tiktok Code

✨ Megiddo

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If the purchase of US TikTok operations does not meet national security requirements, the app will be closed.

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Oracle's purchase of TikTok's US operations and spinning them off as a separate company turned out to be tricky. The fact is that the parties to the transaction currently interpret the preliminary agreements differently. For example, the Chinese company ByteDance, which still owns TikTok, wants to retain 80% of the shares of the new company TikTok Global, while the American authorities demand full control over the application code.

“The USA should have all the code. Oracle will be responsible for modernizing the code, cleaning up the code and keeping it secure in its cloud and… meeting all of our requirements, ”US Treasury Secretary Stephen Mnuchin said during the CNBC Investor Conference on Wednesday, September 30.

In other words, the US government is not prepared to share pieces of TikTok's code and let China retain control of the recommendation algorithm. According to Mnuchin, if the deal does not meet national security requirements, then TikTok will be closed in the United States, writes Reuters.

It is worth noting that ByteDance is ready to give Oracle a 12.5% stake in the new company TikTok Global and control over code updates, as well as allow it to store application user data on its servers in the United States. As for control over the recommendation algorithm, ByteDance intends to keep it for itself. This condition was imposed by the Chinese authorities, wishing to prevent the transfer of important intellectual property abroad without special permission.
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