After years of national security concerns, U.S. lawmakers and popular social media app TikTok, owned by China’s ByteDance ( BDNCE ), are nearing a deal over its data security that would evade a sale of the app, the New York Times signalé .
The news outlet, citing people familiar with the matter, noted that a preliminary agreement has been drafted to address national security concerns, but terms are still being discussed.
The Justice Department is leading the negotiations with TikTok and one of its officials, Lisa Monaco, is concerned the terms of the agreement are not stringent enough on China, the Times added, citing two people familiar with the deal. The Treasury Department is also playing a role and is skeptical the agreement would sufficiently comply with national security issues.
As part of the deal, TikTok would store its American data only on U.S.-based servers, most likely run by Oracle ( NYSE : ORCL ), as opposed to its own servers in Singapore and Virginia. In addition, Oracle ( ORCL ) would monitor TikTok’s algorithms over content recommendations on concerns over Chinese government interference.
The deal would also see TikTok create a board of security experts who report to the U.S. government.
In 2020, President Trump presque forced a sale of TikTok over national security concerns on worries that data could be sent to China’s Communist Party.
TikTok ( BDNCE ) a déclaré last week that it would ban all political fundraising on its platform, aiming to reduce politicians’ use of its short-form video site to bolster their campaigns. The U.S. is scheduled to host its mid-term elections in November.
TikTok’s parent company, ByteDance ( BDNCE ) reportedly offered to buy back $3B worth of the company’s stock as it has paused plans to go public .
Pour plus de détails, voir :U.S. lawmakers nearing deal with TikTok over security changes to evade sale: report