The Trump administration is contemplating a deal to lease TikTok’s algorithm from ByteDance through a new entity led by Oracle. This proposal aims to mitigate legal issues and concerns regarding data security. The administration’s approach demonstrates a shift in focus towards safeguarding user data while handling tensions with China. A successful deal could mitigate the app’s legal challenges amid potential congressional bans.

The Trump administration is evaluating a proposal to address TikTok’s legal status by potentially leasing the app’s algorithm from its Beijing-based owner, ByteDance, as reported by a source involved in the discussions. This plan would establish a new U.S. entity headed by Oracle, with ByteDance maintaining a minority interest. The proposal has raised concerns within the White House regarding whether it effectively removes ByteDance’s control over the application, especially amidst a backdrop of heightened tensions with China and a recently implemented 34% tariff on Chinese goods.

As the deadline imposed by Trump approaches, numerous parties have expressed interest in bidding for TikTok, including Amazon; however, the White House is reportedly not taking Amazon’s bid seriously. Oracle, which currently supplies significant backend support for TikTok, would oversee the new entity, ensuring that there are no unauthorized accesses to American users’ data by the Chinese government. The primary focus of the negotiations appears to be the safeguarding of user data rather than the app’s algorithm itself.

Concerns over data security have largely overshadowed anxieties related to the algorithm’s control, reflecting a shift in priorities. The ongoing negotiations evoke memories of the earlier Project Texas initiative, during which Oracle was intended to act as custodian of TikTok’s data and perform regular audits of its algorithm. Notably, the current iteration of the Oracle-led arrangement does not include a “kill switch” that would allow U.S. officials to deactivate the platform if it failed to meet national security benchmarks.

Karoline Leavitt, the White House press secretary, refrained from commenting on the Oracle plan, stating that any announcement regarding a TikTok deal would come directly from President Trump. A successful deal would alleviate some of the strain TikTok has faced throughout a tumultuous year marked by a federal ban enacted in January that prevents the app from operating in the U.S. unless it separates from ByteDance.

This ban, which garnered bipartisan support in Congress, stems from national security concerns about TikTok’s Chinese ownership. Following legal challenges from TikTok up to the Supreme Court, which upheld the law, the app temporarily went offline before Trump signed an executive order delaying the ban’s implementation. This extension will expire on April 5, highlighting the precarious legal status in which TikTok finds itself. Despite these challenges, Trump has claimed substantial interest from buyers, indicating that TikTok’s market presence remains robust, serving over 170 million American users.

In summary, the Trump administration’s consideration of a deal to lease TikTok’s algorithm from ByteDance, involving Oracle, seeks to alleviate legal uncertainties surrounding the app in light of national security concerns. Although the proposal has faced scrutiny within the White House, it reflects ongoing efforts to ensure user data protection while navigating complex geopolitical relations with China. As the situation develops, the outcome remains significant for TikTok’s operations and the broader landscape of technology regulation.

Original Source: news.wfsu.org

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