US authorities set to involve Oracle in TikTok deal

In an attempt to block possible channels of China’s influence on the American public through the TikTok social network, the US authorities initially relied on the infrastructure of the American company Oracle. It also figures in specialized initiatives and at the new stage of negotiations, which by early April could end with a deal involving Oracle and TikTok (ByteDance).

Image source: Unsplash, Olivier Bergeron

As Politico notes, citing its own sources, US President Donald Trump has delegated the authority to negotiate in this area to Vice President JD Vance and National Security Advisor Mike Waltz. Some senators would also like to join the process, but this decision remains with these political figures. Among the most radical American parliamentarians, there is growing concern about the superficial nature of the transformation of TikTok’s activities in the US that could be achieved as a result of the deal. The “hawks” do not want to allow the key technologies that determine the functioning of the social network to remain under the control of the Chinese side. US lawmakers intend to hold consultations on this topic with Oracle representatives this week.

The deal under discussion would see Oracle controlling TikTok’s American user data and keeping the Chinese side out of it. Some lawmakers believe that if ByteDance retains control over TikTok’s key algorithms, Oracle’s obligations under the deal would effectively be fictitious. At the same time, an independent HaystackID study in February found no suspicious activity in TikTok’s infrastructure in the United States, nor were there any reported cases of personal data leaks to China.

The potential TikTok deal, which could be completed by early next month, has been dubbed “Project Texas 2.0” because it is the second attempt by U.S. authorities to structure the social media platform so that local user data is stored and processed on Oracle’s U.S. servers. The extension on the TikTok ban in the U.S. expires on April 5, and President Trump has expressed hope that the deal will be completed before then, but he will extend it again if necessary.

Chinese authorities have sent mixed signals about their possible influence on the outcome of the deal. On the one hand, they have made it clear that ByteDance will have to seek Chinese approval to enter into a deal to transfer its American assets and key technologies to US investors. On the other hand, they have said that ByteDance will decide the fate of its American business itself in accordance with market rules and Chinese law. Chinese authorities have also condemned the “hegemon’s actions” to seize control of the TikTok app.