Oracle Has Won the Bid for Tik Tok; Microsoft Rejected

Tik Tok

Oracle Corp. has won the bid for TikTok, the company confirmed in a release. According to the release, Oracle has come to an agreement where it will work in partnership with TikTok. The proposal for the same has been submitted to the Government of the United States.

The bidding war also saw participation from giants like Microsoft. Microsoft, led by Satya Nadella, announced over the weekend that it lost the bid after it was rejected by the video-sharing platform. The owner of TikTok chose Oracle as a partner for its operations in America just before the September 20 deadline that was set up by President Trump. The app would have been banned if it wasn’t sold to a company from the U.S before the deadline.

Microsoft said in a statement that ByteDance informed that TikTok would not be sold to them. They also mentioned that they were confident that their proposal would have been good for the platform’s users and also protect national security. They added in their statement that they would have made changes to ensure that the service met high standards of online safety, privacy, security, and fighting disinformation. Microsoft mentioned that they would like to see how the service evolves in the above mentioned essential areas.

According to reports, it was not yet clear whether Oracle would also get majority ownership in the video-sharing platform. It was announced that Oracle will be announced as TikTok’s trusted tech partner, with the deal not being structured as an outright sale. Sale talks, however, had been on hold since China had set new rules which would not allow TikTok to transfer its technology to foreign buyers unless approved by the Chinese government. Reports mentioned that these rules foiled Microsoft’s bid since Microsoft had said that it would bring about a series of protections. This would essentially mean that Microsoft would have control over the computer code used by TikTok in America.

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Microsoft had mentioned that the only way it could keep user data private was by taking over the computer code. This would prevent Beijing from getting unwarranted access and using the app as a means for spreading misinformation.

After the bidding, the next step would be approval from the White House and the Committee on Foreign Investment. What Oracle does with TikTok’s technology, written by a Chinese engineering group, is yet to be seen.

India was the first country to take the step of banning TikTok and WeChat, using national security as the reason. India has also banned around 220 apps that are Chinese, earning approval from the Trump administration. The Oracle partnership with TikTok will not make a difference to the ban in India according to government officials.

According to these officials, even if the partnership extends to the country, it won’t be sufficient. This is because this is in no way an assurance that the data of Indian users won’t be sent elsewhere. Another official also mentioned that till the issues regarding security, user permissions, and data privacy are not dealt with, the ban will not be removed.