The TikTok-Oracle deal may provoke a global data storage melee and more politically motivated intervention in the tech sector.
—its ability to survive in the United States has remained under a cloud of uncertainty. Would regulators step in and kill off a product that had become a staple form of communication for some 100 million Americans?that TikTok will enter into a data storage deal with Oracle. In the short term, the agreement would be good for US users, enabling TikTok to invest more of its resources and energy into improving its product, rather than wrestling with the government.
But in the long run, the forecast looks bleaker. The deal would establish precedents likely to harm technology companies and their users. The main concern US politicians have raised about TikTok is that because it’s owned by the China's ByteDance, the Chinese government could conceivably access any American data held by the company. The other big concern has been security risk. This deal would address both. Under the agreement, Oracle would store TikTok data for US users, ensure that data is not transferred to ByteDance, and be responsible for protecting user data from cybersecurity threats.
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