US Lifts Ban on TikTok, Approves Deal With Oracle

US Lifts Ban on TikTok, Approves Deal With Oracle

Ctoonbro: www.pexels.com/

TikTok, a leading destination for short-form mobile video, has reacted to the forthcoming ban on the app in the US.

However, according to NPR, President Donald Trump has agreed to TikTok’s deal with Oracle that will keep the app alive in the US market.

“I have given the deal my blessing,” Trump said. “I approve the deal in concept.”

According to the deal, Oracle will serve as the trusted technology provider accessing up to 12.5 percent stake of the company, while Walmart will have the rights to buy up to 7.5 percent stake in TikTok Global. The two companies will pay $12 billion for the stakes if they consent to the valuation.

Vanessa Pappas, Interim Head of TikTok in a statement on Sunday said “We’re pleased that today we’ve confirmed a proposal that resolves the Administration’s security concerns and settles questions around TikTok’s future in the U.S.”

TikTok has global offices including Los Angeles, New York, London, Paris, Berlin, Dubai, Mumbai, Singapore, Jakarta, Seoul, and Tokyo.

The US  Commerce Department had announced plans to ban TikTok and WeChat from the American App stores to safeguard the security interests of the country.

Commerce Secretary Wilbur Ross cited the potential threat posed by the apps to US national security and to the US economy. “At the President’s direction, we have taken significant action to combat China’s malicious collection of American citizens’ personal data,” Ross said in a statement.

Earlier, a TikTok Representative in a statement said “We disagree with the decision from the Commerce Department and are disappointed that it stands to block new app downloads from Sunday and ban the use of the TikTok app in the US from November 12. Our community of 100 million U.S. users love TikTok because it’s a home for entertainment, self-expression, and connection and we’re committed to protecting their privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform.”