The U.S. administration has intensified its efforts to secure control of TikTok, the popular Chinese-origin social media platform, considered a strategic asset in the realms of technology and national security. According to NPR reports, the White House is in talks with Oracle and a group of investors to take control of TikTok’s global operations, while Microsoft is also exploring the possibility of participating in this investment.
A Strategic Interest for National Security
Control over TikTok has become a priority for the United States, in a context where the management of personal data and the influence of digital platforms are key to national security. TikTok, owned by the Chinese company ByteDance, stores and manages data from millions of U.S. users, raising concerns about potential access by the Chinese government to this information.
To mitigate these risks, Oracle has been TikTok’s cloud provider in the U.S. since 2022. However, the current administration seeks a broader solution that involves direct oversight of the app’s technology, its algorithms, and data management, minimizing any possible foreign influence.
The Role of Oracle and Microsoft in TikTok’s Future
Oracle, which already plays a key role in TikTok’s operations in the U.S., is negotiating to acquire a minority stake in the platform, backed by other investors. Under the negotiations, ByteDance would retain a minority stake, but Oracle would oversee the algorithm, data collection, and software of the social network.
Microsoft is also positioning itself as a potential competitor in this deal. In 2020, the company had already expressed interest in acquiring TikTok, and its CEO, Satya Nadella, described the negotiations as “the strangest” he had ever worked on. Now, the company may return to the fray to ensure its presence in the competitive social media market.
A Market of High Strategic Value
The value of TikTok is not limited to its appeal as a social network; it also represents a powerful tool in terms of cultural influence and data collection. According to estimates, ByteDance values TikTok at least $200 billion, reflecting its global impact and its ability to shape trends among younger generations.
Moreover, TikTok’s dominance in the U.S. market could have economic and political implications. The platform not only generates significant revenue but also acts as a channel for the dissemination of cultural and informative content, making it a strategic asset for any nation.
Controlling TikTok: A Matter of Technological Sovereignty
The U.S. interest in controlling TikTok underscores the importance of technological sovereignty in an increasingly digitalized world. Geopolitical tensions with China have led Washington to prioritize data protection and technological autonomy as cornerstones of its national security strategy.
Larry Ellison, Oracle’s founder and a supporter of Donald Trump during the 2016 elections, has played a prominent role in previous attempts to acquire TikTok. In 2020, Oracle and Walmart were close to finalizing a deal to acquire 20% of the platform, although negotiations fell apart after Trump’s defeat in the elections.
The Challenge for the Biden Administration
The Biden administration faces a complex scenario in negotiating a deal that satisfies security concerns while also being viable from a legal and commercial standpoint. Meanwhile, TikTok remains unavailable on major app stores in the U.S., such as those of Apple and Google.
The importance of this deal transcends the economic realm. Control over TikTok symbolizes the U.S. effort to protect its digital infrastructure against the growing technological influence of China. The ability to regulate and oversee global platforms like TikTok will be a key indicator of the United States’ position in the global technological competition.
via: Social Media News