Trump Plans TikTok Rescue: Oracle as Security Guarantor

In the struggle for the continued existence of TikTok in the United States, the IT corporation Oracle is emerging as a central component of the security architecture. Described as the 'great firewall of America', Oracle is to secure the confidential U.S. user data and the algorithm of the popular app. The developments are strikingly similar to the previously failed 'Project Texas'. This partnership between Oracle and TikTok was already deemed insufficient by the Biden administration. Critics point out that Trump's new plan is merely a rehash with cosmetic adjustments, exchanging long-term security for short-term optics. At the center of the discussion is the risk that TikTok, whose parent company ByteDance is based in China, could make user data accessible to the Chinese government, for example, to compile surveillance dossiers. Moreover, there is concern that the algorithm could be used to spread divisive content. To safeguard U.S. interests, it is planned to sell TikTok's U.S. operations to a consortium, which, in addition to Oracle, is likely to include Silver Lake Management and MGX from Abu Dhabi. ByteDance is expected to remain below the legally specified threshold of 20% ownership. Oracle is anticipated to take on the role of a security advisor to ensure both the integrity of the algorithms and the protection of U.S. data. This is not Oracle's first challenge of this nature. Already in the framework of 'Project Texas', similar efforts were made. However, the approach was deemed impractical by security and tech experts. According to them, a complete separation of the U.S. branch from ByteDance is not feasible without jeopardizing the platform's attractiveness and profitability. Critics are currently expressing doubts about the feasibility of the separation from ByteDance. ByteDance is supposed to still hold almost 20% of the new entity, have a seat on the board, and share in the profits. These points are particularly controversial as they, according to skeptics, do not meet the demand for the complete independence of U.S. TikTok from ByteDance. In Washington D.C., the new plan is being closely monitored. Republican Representative John Moolenaar announced comprehensive reviews. Craig Singleton from the Foundation for Defense of Democracies views the endeavor as 'Project Texas in new garb'.