Oracle will host all of TikTok's USA user data "to ensure US national security requirements are fully satisfied", the company said in a statement. At the same time, a California judge struck down Trump's ban on Chinese-owned messaging app WeChat. "What matters is our clients' rights to use the app will end on Sunday", he added, referring the the September 20 date for the ban as laid out in Trump's order.
The now-delayed bans stemmed from a pair of executive orders Trump issued August 6, declaring that both apps posed threats to national security because they collected "vast swaths" of data on Americans and other users, and offered the Chinese Communist Party avenues for censoring or distorting information. Nonetheless, the final figure is contingent on TikTok's "actual business performance and the US tax structure", the parent said, stressing that the tax money has "nothing to do with the ongoing deal".
Given the president's approval of the TikTok pact, the U.S. Commerce Department said it has pushed back the prohibition on app stores providing access to TikTok until next Sunday, Sept. 27.
Beeler's preliminary injunction also blocked the Commerce order that would have barred other transactions with WeChat in the United States that could have dramatically degraded the site's usability for current U.S. users or potentially made it unusable.
The TikTok ban was originally due to come into effect on Sunday too, but the Commerce Department announced on Saturday that the deadline would be pushed back another week, as Oracle and Walmart continue talks to buy the platform's United States operations from Chinese firm ByteDance.
There is no shortage of speculation and reports around TikTok's future in the U.S. Amid a swirl of rumors, TikTok's Chinese parent ByteDance issued a statement (in Chinese) on Monday morning, bringing clarity to its ongoing deal that has captured global attention over the past few weeks. Oracle will take a 12.5% stake in the new TikTok entity that will be named "TikTok Global".
Oracle didn't immediately respond to request for comment.
He said Oracle's expertise in database management and privacy protection, coupled with Walmart's hunger for leapfrogging into the social commerce realm, would "add tangible flavor" to the deal. "Millions of people in the United States watch or post videos to TikTok and rely on WeChat for connections to family, friends, and work relationships".
In her short opinion published yesterday, United States magistrate judge Laurel Beeler, argued that the government's case showed weaknesses on First Amendment grounds, its authority to act within existing legislation to allow the government to control industry, and its overall vagueness compared to the damage a ban would likely have on the Chinese-speaking community in the United States.
The US Department of Commerce Secretary Wilbur Ross said in a statement that the decision to block the app was taken "to combat China's malicious collection of American citizens' personal data".
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