# Exclusive-TikTok nears deal with Oracle to store its data-sources Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-03-10 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: TikTok Nearing Deal with Oracle to Address U.S. Data Meta Description: TikTok is close to an agreement with Oracle to store its U.S. users' information securely, addressing national security concerns over data integrity. Learn URL: https://financedigest.com/exclusive-tiktok-nears-deal-with-oracle-to-store-its-data-sourceshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-03-10t165409z2lynxnpei29120rtroptp4eu-tiktok-1736815975808-compressed.jpg) By Echo Wang and David Shepardson (Reuters) – TikTok is nearing a deal for Oracle Corp to store its U.S. users’ [information without its Chinese parent ByteDance having access](https://www.financedigest.com/kings-secure-technologies-adopts-agile-flexible-cloud-reporting-access-granular-real-time-financial-information.html "Kings Secure Technologies Adopts Agile and Flexible Cloud Reporting for Access to ‘Granular Real-time Financial Information’") to it, hoping to address concerns of a U.S. national security panel over [data integrity](https://www.financedigest.com/data-integrity-the-holy-grail-of-operational-efficiency.html "Data integrity: the holy grail of operational efficiency") on the popular short video app, people familiar with the matter said. The agreement would come a [year and a half](https://www.financedigest.com/an-apple-a-year-half-of-iphone-users-will-upgrade-to-the-iphone-7.html "AN APPLE A YEAR: HALF OF IPHONE USERS WILL UPGRADE TO THE IPHONE 7") after the Committee on Foreign Investment in the United States (CFIUS) ordered ByteDance to divest TikTok because of fears that U.S. user [data could be passed on to China’s](https://www.financedigest.com/stocks-sag-as-hawkish-fed-cools-china-rally-awaits-us-jobs-data.html "Stocks sag as hawkish Fed cools China rally; awaits US jobs data") communist government. That order was not enforced after Joe Biden succeeded [Donald Trump](https://www.financedigest.com/over-a-third-of-uk-people-think-thomas-whitmore-from-independence-day-will-be-joined-by-donald-trump-in-disneys-hall-of-presidents.html "Over a third of UK people think Thomas Whitmore from Independence Day will be joined by Donald Trump in Disney’s Hall of Presidents") as U.S. President last year, but CFIUS has [continued to harbor concerns over data security](https://www.financedigest.com/ils-investment-returns-continue-to-outperform-according-to-aon-insurance-linked-securities-report.html "ILS investment returns continue to outperform, according to Aon insurance-linked securities report") at TikTok that ByteDance is now hoping to address, the sources said. It is not clear whether CFIUS will find that TikTok’s partnership with Oracle will [resolve the national security issues](https://www.financedigest.com/apple-says-issues-with-imessage-facetime-resolved35792.html "Apple says issues with iMessage, FaceTime resolved") it has identified, the sources said. A spokesperson for the U.S. Department of the Treasury, which chairs CFIUS, did not immediately respond to a request for comment. Oracle had discussed acquiring a [minority stake](https://www.financedigest.com/german-space-firm-ohb-plans-to-delist-as-kkr-takes-minority-stake.html "German space firm OHB plans to delist as KKR takes minority stake") in TikTok in 2020, when ByteDance was under U.S. pressure to sell the app. The [cloud computing](https://www.financedigest.com/the-value-of-cloud-computing.html "The Value of Cloud Computing") giant will store all of TikTok’s U.S. user data on Oracle data servers under the new proposed partnership, the sources said. Some of TikTok’s [data is currently stored on Alphabet Inc’s Google Cloud](https://www.financedigest.com/three-ways-the-data-cloud-can-keep-financial-services-competitive.html "Three Ways the Data Cloud Can Keep Financial Services Competitive"). A dedicated U.S. data [management team acting](https://www.financedigest.com/fintech-and-compliance-managing-the-eternal-balancing-act.html "Fintech and compliance: Managing the eternal balancing act") as a gatekeeper for U.S. user information and ringfencing it from ByteDance will be set up under the agreement, the sources said. The companies are [discussing a structure under which that team](https://www.financedigest.com/finland-sweden-to-send-teams-to-turkey-to-discuss-nato-bids-haavisto-says.html "Finland, Sweden to send teams to Turkey to discuss NATO bids, Haavisto says") would not be under TikTok’s control or supervision, the sources added. TikTok is also exploring partnerships with other [technology companies](https://www.financedigest.com/kelda-technology-selected-as-one-of-thetop-30-cleantech-companies-in-the-world.html "Kelda Technology selected as one of thetop 30 cleantech companies in the world") over firewalls and cyber security measures, the sources added. ByteDance and Oracle did not immediately respond to requests for comment. TikTok is one of the world’s most popular [social media apps](https://www.financedigest.com/saudi-snitching-app-turns-citizens-into-social-media-police.html "Saudi snitching app turns citizens into social media police"), with more than 1 billion active users globally. The information of U.S. [users is currently stored in TikTok data](https://www.financedigest.com/datawallet-partners-with-indorse-and-steemit-allows-users-to-earn-profit-for-sharing-data.html "Datawallet Partners with Indorse and Steemit, Allows Users to Earn Profit for Sharing Data") centers in Virginia, with a back-up in Singapore. The United States has been increasingly scrutinizing app developers over the [personal data](https://www.financedigest.com/five-ways-to-keep-your-personal-data-safe-from-hackers.html "Five ways to keep your personal data safe from hackers") they handle, especially if some of it involves U.S. military or intelligence personnel. Chinese gaming [company Beijing Kunlun Tech](https://www.financedigest.com/uk-to-fine-tech-companies-that-fail-to-remove-self-harm-material.html "UK to fine tech companies that fail to remove self-harm material") Co Ltd was forced to sell its popular gay dating app Grindr in 2020 after CFIUS approached it with national security concerns. ByteDance is one of China’s fastest [growing startups](https://www.financedigest.com/4-strategies-for-quickly-growing-your-startup.html "4 Strategies for Quickly Growing Your Startup"). It owns the country’s leading news aggregator, Jinri Toutiao, as well as TikTok’s Chinese counterpart Douyin. (Reporting by Echo Wang in New York and David Sheparson in Washington D.C.; Editing by Greg Roumeliotis) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---