In the aftermath of the acquisition of TikTok US to Oracle in order to let the social media app to function in the US, ByteDance – the parent company of TikTok has refused to transfer TikTok’s algorithm and technology to the tech company.
The US President Donald Trump on Saturday approved a deal that will see the creation of TikTok global headquartered in the US with Oracle and Walmart owning the minority stake. Oracle will become TikTok’s secure cloud to counter the privacy concerns of the US citizens amidst the company earlier residing in China.
However, the deal apparently doesn’t include any transfer of algorithm and technology, as per a statement presented by ByteDance on Monday. Though, the company has allowed Oracle to keep tabs on the source code of TikTok. “The current plan does not involve the transfer of any algorithms and technologies. Oracle has the authority to check the source code of TikTok USA,” ByteDance’s statement said, according to a CNBC translation.
What Will Source Code Check Provide?
As per CNBC, source code forms the basis for applications and software. Allowing inspections of source code is common practice to address local data security concerns.
TikTok’s key driver in its mammoth growth has been its recommendation algorithm which suggests the users watch videos on its own, keeping them hooked on the app.
Won’t ByteDance Poke Its Nose?
80% stakes of TikTok global will be possessed by ByteDance giving it majority control. On the other hand, Oracle and Walmart claimed that they would work toward a public listing in the US within a year.
Trump said the new TikTok Global will “have nothing to do with any outside land, any outside country, it will have nothing to do with China. It’ll be totally secure. That’ll be part of the deal.”
But ByteDance’s majority stake in TikTok Global contradicts the statement by Trump, though interestingly ByteDance is 40% owned by U.S. venture capital firms, so the Trump administration can technically claim TikTok Global is now majority-owned by the US capital.
Thus, giving the US an upper hand in the deal. It remains to be seen how China will involve themselves in this transaction. Though the global conflict between the two nations signal that it will probably not be a smooth interference. веб займ телефонзайм под залог москвазайм до 50000 рублей займ деньги онлайнонлайн займ на банковский счетзайм через контакт онлайн